Disclaimer: This article is merely providing an opinion and not an advice to buy. Please do your own thorough research before you make a decision.
Parc Clematis has been launched this year after Parc West went through the en-bloc process in early 2018.
(This was before the July 2018 cooling measures)
In this case, the developer had paid $850 psf per plot ratio. The starting prices at Parc Clematis is currently at average of $16XX PSF.
My interest in Parc Clematis is from my experience in serving owners and landlords who owned properties around the area. So I have some level of familiarity with this location.
So is Parc Clematis a worthy investment to consider?
Here are 6 things about Parc Clematis that you must be aware of:
#1: There is an Abundance of Private Properties Within The Area
There is an abundance of private properties in the Clementi / West Coast area.
With existing launched residential developments that are under construction like Twin Vue, Parc Riveira and Whistler Grand.
And coupled with the existing condominiums like Clement Canopy, The Parc, Botannia, Carabelle, Hundred Trees, Infiniti, Monterey Park, NEWest
And not forgetting condominiums situated at the west coast area.
Therefore I foresee that owners facing more competition to re-sell their apartments in the near future.
With the abundant supply of residential developments in the mentioned area, you may need a longer timeframe in getting tenants If you are planning to lease out your apartment.
#2: Parc Clematis Is A Huge Development Consisting of 1468 Units
A big-sized development like Parc Clematis will usually attract more awareness in the market.
For most cases, there will be more facilities catered to the residents too.
Why? In the future, they will have more sales transacted volumes monthly as compared to a smaller-sized development.
Some of my clients initially disagree with me on this topic.
Their concerns were:
More units will also lead to more competition and it might take a longer time to sell.
My reply to them was this:
Competition is what makes the development sells – with competition, it will result in more sales volume.
With more sales transactions, the valuation of a particular unit in a development will become more accurate for the banks to justify.
Just imagine if there was no sales transaction or a very small sales volume?
You will probably get a conservative price indication from the banks. This might cause you to end up making less profit , breaking even or making a loss.
However, do take note – there is no hard and fast rule regarding a “safe” size of a development.
But based on my experience on analyzing sales volumes of various property developments – it is definitely a safer option to invest in a development that has more than 200 units.
Too small and you get very thin volume of sales transactions – resulting in difficulties in sizing up the value of your property.
And you might also take a longer time to get the right buyer to commit the purchase.
#3: Attractive For Parents of Young Children
Parc Clematis is located within a 1km radius of reputable and popular primary school – Nan Hua Primary which is one street across.
There are also other primary and secondary schools located nearby like:
- Pei Tong Primary School
- Clementi Primary School
- Nan Hua High School
- Qifa Primary School
- NUS High School
For parents who are looking to ensure their children have a short commute to school – Parc Clematis is a choice to consider.
It is also nearby to other educational institutions like:
- Singapore Polytechnic
- Ngee Ann Polytechnic
#4: A Tenant “Catchment Area”
I wrote about this topic in another blog post – Your Condo Property Investment – The Importance of Identifying the Correct Tenant Mix.
One of the key criteria in property investment which I discussed in the above post was the potential pool of tenants within the area.
In the past 13 years as a realtor, the tenants are usually those that are working within the Science Park, Fusionpolis, Biopolis , International Business Park and sometimes expatriates working in Jurong Island.
There are also Japanese expats who choose to stay close to Japanese schools located at West Coast Area for their kids.
Parc Clematis is in close vicinity to such areas.
#5: Potential Rental Yield of Parc Clematis
For the potential rental returns of Parc Clematis, I will be comparing it with nearby residential condominiums.
Hence it is a highly sought after location for expatriates who look for accommodation who mostly work at the nearby business parks .
In fact, I believe Parc Clematis will have the same rent effect when it becomes ready to be occupied.
For those landlords who own units at Trilinq which is located next to Parc Clematis, they might need to prepare for tenants not renewing their lease agreements once Parc Clematis is ready.
The main reason is that big developments like Parc Clematis can offer a wider range of facilities to their residents as compared to smaller developments.
The fact that it will be a brand new development will definitely be a plus point for attracting tenants.
However, with the addition of more than 1000+ units and also considering the fact that units were bought with a higher PSF – Rental yield may not be as attractive as compared to Trilinq and other nearby developments.
#6: Parc Clematis Breakeven Price
As a property investor, do pay close attention to how much the developer paid for the land.
It will give a clear indication on how much the developer needs to break even based on their other building related costs.
In this case, Parc Clematis is currently being sold at an average of $16XX psf which sets the new benchmark for the upcoming residential launches to follow.
Is the profit margin too high? Or do you think it is worth paying?
There will be ANOTHER new property launch coming up at Clementi Ave 1 site. This is on a government land sale site (not an enbloc).
The breakeven price is almost similar to Park West/Parc Clematis breakeven price.
In comparison with Clementi Ave 1 GLS Land Site and Parc Clematis Site
- Both Breakeven prices were quite close , thus i anticipate the launch prices at Clementi ave 1 site to be quite close compared with Parc Clematis.
- The land size of Clementi ave 1 site which is 16542.7 square meters , is 3.5 times smaller compared with Parc clematis. In terms of landscaping and facilities wise, Parc Clematis will have much to offer.
- Both developments are built by Reputable developers . However, UOL group which is the Developer for Clementi Ave 1 Site had been in the property development business for decades here in Singapore.
These are just some of the factors you will need to take into your consideration.
What will be the effect of another new launch that is nearby on Parc Clematis current prices?
Every new property launch will have their own unique selling points.
Do I heartily endorse Parc Clematis?
To be honest – it really depends on your needs.
I am merely sharing based on my experience of serving owners, tenants and property investors who have bought into this area.
In a year with more than 60 new launches – everyone is spoilt for choice.
More often than not – there is also alot of confusion on what are the important factors to take note of.
As mentioned and covered in my previous article, here are 4 important criterias that your selected property choice must have before you enter the market:
- Growth Story
- Transaction Volumes
- Entry Price
Identify them carefully and enter the property market only when it fulfils at least 3 of the investment criteria.
All these discussion needs to be done before you even step into the show gallery.
More importantly, check and find out whether:
- if you are financially able to afford and
- whether if you have the holding power when buying such a property investment.
- you have an exit strategy
Unsure of your next move?
Contact me for no-obligation discussion if you have plans to enter the property market.