D5 Clementi has always been a popular property investment in the West for Singapore. Property here outperforms anywhere else in the West. With Singapore becoming more integrated, the most important USP (unique selling point) of Singapore’s location is education.
Clementi is known for that as a gem for early education. You can find multiple primary, secondary, and tertiary education all within a few bus stops away.
For property investors looking to invest, properties here have been relatively well, especially for the ones near Clementi MRT and Nan Hua Primary School. Just recently, we have seen new launches within the area done relatively well such as Parc Clementis which reached its TOP (temporary occupation period).
Now, the question moving forward is:
will it command higher prices in the future?
Why D5 Clementi is so expensive?
D5 Clementi holds a special place in the hearts of property buyers for several reasons. Let’s delve into what makes this district an attractive choice for real estate investment:
1. Constant Record Pricing and Growth
If you have been keeping up with the news, Clementi has been one of the hotspots when it comes to million-dollar HDBs.
Over the last few years, we have seen major developments happening around the region. Its location is ideal that’s right beside the RCR (Rest of Central Region) and CCR (Core Central Region). With more upcoming news of JLD and CIL being built, we can expect more capital appreciation over the next few years.
2. Future Potential
Jurong Lake District is looking to become an up-and-coming business district. Where do you think the best chance of capital appreciation is going to be?
Smart investors know that buying property is simply a waiting game.
The Jurong Lake District (JLD) is positioned to grow into an economic powerhouse as it aims to draw in a wide range of companies and industries from the existing sectors that operate in the district.
This includes professional services and construction, finance, insurance, information and communications, wholesale and retail trade, energy, transport and storage, sustainability, and public administration.
More jobs = more demand for property = more capital appreciations
We can also expect large changes to happen by 2027 when the Jurong region MRT line is set up and the rest of the infrastructure to be done by 2029. Apart from Jurong, Tengah will be the next industrial hub where more job opportunities will be allocated.
3. Excellent Connectivity
More is better right?
The district is already well-connected to various parts of the city through a network of MRT stations, bus routes, and major expressways. With the addition of the CIL (cross island line) intersecting Clementi, this location will be even more convenient for commuters.
If you drive, Clementi has two flyovers that go to Jurong and down towards the CBD (central business district). It also links up north to the PIE, connecting you to areas towards the North of Singapore as well.
4. Educational Hub
For families with children, D5 Clementi is a haven for education; covering primary, secondary, and tertiary schools.
The district is home to reputable schools, colleges, and universities, making it a sought-after location for students and academics alike. Parents can rest assured that their children will receive top-notch education without the hassle of long commutes.
Looking at historical data on private properties in Clementi, we know that the psf (per square foot) growth around central Clementi has done relatively well over the last 10 years. The major reason for such high growth is its proximity to Nan Hua Primary School, a school that’s considered to be one of the better schools out there.
If your chosen primary school has more registrants than vacancies, priority admission will be given based on your child’s citizenship and the Home-School Distance category, which is in turn based on the address used for registration.
- Priority admission is given in this order:
- Singapore Citizens (SC) living within 1km of the school.
- SCs living between 1km and 2km from the school.
- SCs living outside 2km of the school.
- Permanent Residents (PR) living within 1km of the school.
- PRs living between 1km and 2km from the school.
- PRs living outside 2km of the school.
In order to get into the ideal schools for their children, parents are more willing to pay more for their children’s education. Just look at the chart below to find out how some properties appreciate more based on the distance to Nan Hua Primary School.
With Singapore becoming well-connected, the key factors of real estate appreciation in the future will go to proximity distance from schools around the area.
5. Buy to Suit your Preference
But when it comes to Clementi, there’s are uniqueness each location has to offer. The location can be broken down into three parts; Sunset Way (North), Clementi Central, and West Coast.
Buyers who are looking for a more peaceful living environment can be drawn to the lovely residential community of Sunset Way. This neighborhood is perfect for families and people looking for a calm environment because it is surrounded by beautiful nature.
Holland, a part of the core center region (CCR), is close to Sunset Way. This enables purchasers to possibly profit from the rise in Holland Village property values without having to pay CCR property prices.
Properties like Pinetree Hill Residence which launched in July 2023 encompasses a 75% greenery area to 25% residential area. The property faces the Clementi forest, making the area much cooler than other parts of Clementi.
Despite not having as many commercial conveniences as Clementi Central, it is still a desirable alternative for own-stay and investment because of its exclusivity and attractiveness. We might see additional capital growth in the region as a result of the new Maju Cross Island MRT Line, which is scheduled to open in 2032.
Who doesn’t like to live in the most bustling part of the town? Clementi Central features a bustling shopping mall, Clementi Mall, which offers a range of dining, retail, and entertainment options.
Clementi Peak, a 40-storey BTO flat is highly sought after by many buyers. This location is where you’ll hear many of the million-dollar HDB transactions within the area. With an unblocked view of either Bukit Timah greenery (north) or West coast seaside viewed (south), these types of units have been making record transactions over the last few years.
Apart from convenience, buyers around the area are looking to be nearer to Nan Hua Primary School while still being in close proximity to Clementi MRT.
Despite being smaller than its cousin in the east of Singapore, West Coast Park nonetheless has a variety of hidden locations inside its 50 hectares of parkland. Known for its large playground and beaches, this area has one the the best premium living in Singapore.
Houses around the area mainly consist of private and landed housing, with a number of commercial buildings around the area.
6. Green Spaces and Parks
While some of us may enjoy the urban living lifestyles, others would prefer the tranquil living integrated with nature. Since 2021, NPark has announced that Clementi Forest will be preserved to serve as a stepping-stone for biodiversity.
With greenery becoming USP (unique selling point) criteria for some property buyers, it’s good to know that part of Clementi will have a piece of nature around their corridor.😊
7. Exit Strategy
No matter how much your property appreciates, if no one is willing to buy it, you won’t be able to exit and look for your next property.
Clementi has a low supply of condominiums, which makes them one of the highly sought-after locations. Its most recent launches such as Clavon sold 70% of 640 units, Ki Residence sold 22% of 660 units and Parc Clematis also sold more than 70% of 1,468 units during their first launch. It’s interesting to know that Clavon and Ki Residence made up 53% of new home sales in December 2020.
With buyers looking to also send their kids to good primary schools, it’s relatively easier to exit the market as compared to other real estate compared to other districts.
8. Discounted Risk
Over the next few years, we can expect more development focused on the West area of Singapore. The best way to earn capital appreciation from property investing is to look out for a great location that’s already developed. And mature estate is your best bet!
By buying within a mature estate, your property investment would face lesser risk as compared to the newer estate in Singapore. Buyer’s risk can be calculated based on past transactions on the exit strategy and rentability for passive income.
9. Abundance of Amenities for Residences to Enjoy
For those seeking an active lifestyle, D5 Clementi offers a plethora of recreational facilities. From sports complexes and swimming pools to fitness centers and golf courses, residents can maintain a healthy and active lifestyle with ease.
And if that isn’t enough for you, Clementi is right beside Jurong East; a shopping district that has everything that you need to enjoy an active lifestyle. From the bouldering gym, canoeing, chalet to host, trail to walk, and even playing in the snow (PS. it’s Snowcity).
10. High Rental Demand
Over the last few years, we have seen the rental market explode due to the pandemic and we can expect slower growth as a result of more units being developed. However, we will still continue to see strong demand for rental in Clementi for many years to come.
Clementi is and always will be the most highly sought-after location for students to rent in Singapore. Rent around the area commands a higher premium for its locality and convenience to schools and malls.
Once a student has graduated, they would usually recommend their rental property to their juniors. This means the landlord usually never has to find tenants via an agent to find a rentor. Apart from that, with JLD becoming the new CBD, we can expect even more rental demand within the location.
What’s Install and how can you get started with Property Investing?
Hope you have gotten a rough idea of what you can look out for.
If you would like to know more what other potential growth happening around the area, you can contact Aaron through Calendy here.
Aaron Oon is a Senior Associate Director at Propnex and Founder of Real Estate Insider. A consistent Top Producer in the competitive world of real estate, Armed with a Finance degree from NUS, Aaron is more than just a real estate agent; he’s a strategic thinker and a creative problem solver.
In his company Real Estate Insider, he shares the latest market updates and trends happening in the world and Singapore to keep us within the loop.
What Makes D5 Clementi a Prime Location for Property Buyers?
D5 Clementi’s prime location offers easy access to the city center while providing a serene environment, making it an ideal choice for property buyers.
Are There Good Schools In D5 Clementi?
Yes, D5 Clementi is home to reputable schools, colleges, and universities, making it a popular choice for families with children.
Why Should Investors Consider D5 Clementi?
D5 Clementi offers promising real estate investment opportunities due to ongoing development and government initiatives that are expected to drive property values.
When will Jurong Lake District be Completed?
Jurong Lake District will be out by 2027 where Jurong region will be built then. It will take another 2 more years for JLD to be fully completed.