Huttons’ comments on Clementi Ave 1 and Pine Grove (Parcel B) GLS sites

15 August 2023

In light of the continued economic uncertainties and high costs, developers are likely to be more cautious in their bids for land. Furthermore the two sites are very close to each other, increasing the chances of an overlap in catchment areas. Developers with a need to replenish their land bank may tender for these sites.

The site at Clementi Ave 1 is in a mature estate with plenty of amenities and good schools. There is potential demand from upgraders and investors. The 2 neighbouring projects, Clavon and The Clement Canopy are fully sold within a short span of time, a testament to the strong demand for private homes in the Clementi estate. The project on the site can potentially go up to 40 storeys offering panoramic views of the sea and city.

There may be up to 3 bidders and the top bid could be between $900 and $1,000 psf ppr.

The Pine Grove (Parcel B) site is located in a private residential enclave with popular primary schools like Henry Park and Pei Tong within a 1km radius. It is very near to Clementi Forest, a nature area for avid hikers.

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

There may be up to 3 bidders and the top bid could be above $1,200 psf ppr.