Earlier this month, a five-room HDB flat at 356 Clementi Avenue 2 was sold for $830,000 ($659 psf). The 1,258-sq ft flat is located on the 22nd to 24th storeys. As the lease for this flat commenced in 1978, it has a remaining lease of approximately 52 years.

We used our analytics tool, Is it a Good Deal?, to assess the transaction and determine whether the buyer of this flat in District 5 secured a bargain.

Short walk to amenities

The subject flat is adjacent to Clementi Avenue 2 Market and Cooked Food Centre as well as Clementi Avenue 2 Shopping Centre. It is also a short walk to Clementi Bus Interchange, The Clementi Mall, Grantral Mall @ Clementi, 321 Clementi, and Clementi Swimming Complex and Sports Hall.

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Additionally, the subject flat is within walking distance of Clementi MRT Station (see Map 1), which is slated to serve as an interchange station for the East-West and Cross Island Lines when Phase 2 of the latter line is completed in 2032.

Schools within a 1km radius include Clementi Primary School, Pei Tong Primary School, Clementi Town Secondary School, Nan Hua High School, New Town Secondary School, NUS High School of Mathematics and Science, and the School of Science and Technology, Singapore.

Despite its proximity to numerous amenities, the transacted price for the subject flat is significantly below the average price for the district (see Screenshot 1). However, the price remains among the highest compared to neighbouring properties. This could be because the subject flat is surrounded by HDB blocks of a similar age, while the district also contains newer flats that naturally command higher prices than their older peers.

A possible reason for the low price for the subject flat is its short remaining lease of approximately 52 years, given that its lease commenced in 1978 (see Screenshot 2).

Lower end of price spectrum

According to HDB’s records, 58 five-room flats in Clementi have been sold this year at prices ranging from $630,000 to $1.459 million. Hence, the $830,000 transacted price for the subject flat falls on the lower end of this year’s price spectrum for five-room flats in Clementi.

To date, only two five-room flats in Clementi have been sold for at least $1.4 million (see Table 1). These transactions mark the first time that five-room flats in Clementi have reached the $1.4 million threshold. Interestingly, both flats are located along Clementi Avenue 3.

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In contrast, four flats along Clementi West Street 1 were the most affordable among the five-room flats in Clementi sold this year (see Table 2). They are also the only five-room flats in Clementi that fetched less than $700,000 this year.

The flats along Clementi West Street 1 are located within walking distance of West Coast Plaza, Clementi Woods Park, the National University of Singapore, and a market and food centre along Clementi West Street 2.

A drawback of the four flats is their short remaining lease of approximately 53 years, which could have dampened their prices. Additionally, there are no nearby MRT stations. While this may be mitigated by the nearby Ayer Rajah Expressway (see Map 2), some of the flats face the expressway, resulting in more traffic noise and dust for residents.

Another flat in the same block sold for a lower price

Including the subject flat, only five five-room HDB flats have been sold in Clementi so far this month (see Table 3). Of the five, three achieved prices above $1 million. The two without the million-dollar price tag were the subject flat and another five-room flat in the same block.

The other flat at 356 Clementi Avenue 2 sold for $800,000 ($635 psf). The lower price compared to the subject flat could be because it is on the seventh to ninth storeys, whereas the subject flat is on higher floors.

Price for subject flat lower than its peers

The average resale prices for four-room ($827 psf) and five-room ($814 psf) flats in Clementi have consistently moved in tandem, while three-room flats ($605 psf) lag significantly behind (see Chart 1). Notably, the transacted price of $659 psf for the subject flat is well below the average resale price of five-room flats in Clementi ($814 psf).

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The weaker performance of three-room flats in Clementi could be due to their slower price growth of 28.2% since 2020. In comparison, average resale prices for four-room and five-room flats rose by 43.1% and 36.6%, respectively.

However, among five-room flats aged 41 to 50 years, the average resale price in Clementi ($623 psf) is the highest, followed by islandwide ($598 psf) and the West Region ($525 psf) (see Chart 2). Notably, the subject flat’s $659 psf price is higher than Clementi’s average of $623 psf for flats of similar age.

No condos or ECs within 500m radius

There are no condos or executive condos (ECs) within a 500m radius of the subject flat. However, if the distance is expanded to 1km, there are 16 condos representing approximately 5,200 units. Of these, three are still under construction, namely Nava Grove, Pinetree Hill and Elta. Among the 13 completed condos, only five are 99-year leasehold developments, namely Pine Grove, Astor Green, Cavendish Park, The Clement Canopy and Clavon (see Map 3). The remaining eight are freehold properties.

Pine Grove, Astor Green and Cavendish Park are located along Pine Grove, while The Clement Canopy and Clavon are along Clementi Avenue 1. The land lease of Pine Grove started in 1984, while the land lease for Astor Green and Cavendish Park commenced in 1991, leaving the three condos along Pine Grove with remaining leases of 65 years or less. In contrast, The Clement Canopy and Clavon began their leases in 2016 and 2019, respectively, leaving both with a remaining land lease of at least 90 years.

Given their similar remaining leases, Pine Grove, Astor Green and Cavendish Park are more comparable to the subject flat.

Among the three, Cavendish Park ($1,637 psf) has the highest average resale price, followed by Astor Green ($1,323 psf) and Pine Grove ($1,054 psf) (see Chart 3). The significantly higher price of Cavendish Park could be due to its stronger price growth of 42.3% since 2020. By comparison, Pine Grove and Astor Green recorded price growth of 16.9% and 27%, respectively.

Conclusion

This year, 58 five-room flats in Clementi have been sold for between $630,000 and $1.459 million, placing the subject flat’s $830,000 price at the lower end of the spectrum, likely due to its short remaining lease of 52 years.

However, the subject flat’s transacted price of $659 psf is still higher than the average resale price of $623 psf for five-room flats in Clementi of a similar age. This may be because the flat enjoys proximity to a wide range of amenities, including schools, malls and Clementi MRT Station.

To learn more about this transaction, and whether it is a good deal, click here.

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