Clementi, Pine Grove sites for about 1,065 units could draw bids of up to S$1,200 psf

TWO state land parcels at Clementi Avenue 1 and Pine Grove (Parcel B) have been released for sale, and are expected to draw bids of up to S$1,200 per square foot, and in the region of S$550 million to S$650 million for each site.

Of the two sites, the Clementi plot is likely to draw stronger interest, as it sits where there have been few new projects recently, market watchers said.

The Pine Grove site, meanwhile, is located next to UOL’s upcoming Pinetree Hill, which was marketed last month.

Both sites, which come under the Urban Redevelopment Authority’s (URA) confirmed list for the Government Land Sales (GLS) programme in the second half of 2023, can yield a total of about 1,065 residential units.

Lee Sze Teck, senior director of data analytics at Huttons Asia, noted that the two sites are very close to each other, upping the likelihood of an overlap in catchment areas. But “developers with a need to replenish their land bank may tender for these sites”, he said.

The parcel at Clementi Avenue 1 site spans an area of 13,451.1 square metres and has maximum allowable GFA of 47,079 sq m. A project there could yield 500 housing units in a neighbourhood close to several schools and the National University of Singapore.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

OrangeTee & Tie deputy chief executive officer Justin Quek foresees up to seven bidders for the site, with the highest bid of S$1,100 to S$1,200 per square foot per plot ratio (psf ppr), and between S$557 million and S$608 million for the plot.

It sits between The Clement Canopy and Clavon, both developed by UOL. Clavon, coming up on a GLS site acquired in 2019 for S$491.3 million, proved to be the best-performing new launch of 2020.

The project sold 442 units or 70 per cent of its 640 units in December that year at an average of S$1,640 psf. Clavon was fully sold by September 2022 with prices hitting over S$1,700 psf by then, said Tricia Song, head of research, South-east Asia, CBRE.

The Clement Canopy, launched in 2017, sold 195 units or 39 per cent of the 505-unit development over its first weekend of sales. It was fully sold by 2020 and fetched an average of S$1,337 psf. In the current resale market, units at The Clement Canopy are changing hands at around S$1,695 psf on average.

The Pine Grove land parcel has a site area of 25,039.2 sq m with a maximum GFA of 52,583 sq m. It is estimated to yield about 565 housing units. 

Pine Grove (Parcel B) would be the second plot to be launched for tender in the area, and sits next to the just-launched Pinetree Hill project, which is being built. The Pinetree Hill plot was sold to a joint venture between UOL Group and Singapore Land Group in June 2022 for S$671.5 million, giving a land rate of S$1,318 psf ppr.

Developers are likely to take their cue from the sales of Pinetree Hill, so as to capture the highest potential upside and mitigate downside risks when the project is launched for sale, said Huttons’ Lee.

The 520-unit Pinetree Hill was launched in July and has sold 151 units to date at an average price of about $2,369 psf, based on latest available caveats data.

OrangeTee & Tie’s Quek believes the time gap between the new Pine Grove site and the Pinetree Hill project will ensure sufficient demand can sustain sales at both sites. Supply will continue to be limited in the Ulu Pandan area, he said.

Still, analysts agreed that developers would be cautious in bidding for the Pine Grove site. PropNex Realty’s head of research and content Wong Siew Ying estimates that the site could attract up to three bids, with the top bid coming in at between S$623 million and S$679 million. This would imply a land rate of S$1,100 to S$1,200 psf ppr – lower than what UOL and SingLand paid for their neighbouring Pinetree Hill plot.

The tender for both sites closes on Nov 7, 2023.