Clavon Review: 70% Sold On The First Day. Is It Worth The Hype?

Clavon is a 99-year leasehold project whose estimated Temporary Occupation Permit (TOP) date is 1 Sep 2024, and it is located 1.4km and 1.5km from Clementi and Dover MRT respectively.

Since its launch on 12 December 2020, Clavon has sold 472 out of 640 units to date, with 26.25% remaining. The table belows shows the latest inventory breakdown:

 

 

Type of unitNo. of units soldNo. of units remaining
1 Bedroom720
2 Bedroom2831
3 Bedroom9150
4 Bedroom2186
5 Bedroom531

Clavon is a 99-year leasehold project whose estimated Temporary Occupation Permit (TOP) date is 1 Sep 2024, and it is located 1.4km and 1.5km from Clementi and Dover MRT respectively.†It is also close to business parks in One-North, NUS and within walking distance from primary schools and grocery stores. So, is the initial overwhelming demand all hype or is Clavon really a good buy? Letís dive right in!

To assess Clavonís potential, we use I Quadrantís 4 Criteria for new launches. The criteria are:

  1. Growth Areas
  2. Comparison to surrounding new launch projects
  3. Comparison to surrounding resale projects
  4. Unique Selling Points†

We will explain more about the criteria in detail as we use each of them to evaluate Clavon.†

https://www.youtube.com/watch?v=uRezREi7aUs&t=3s

Criteria 1: Growth Areas
For this criteria, we look at ongoing and planned future developments in the nearby areas, as well as the URA Masterplan.

There are 3 developments in the area, namely, Dover Knowledge District, Jurong Lake District and Greater Southern Waterfront.

1. Dover Knowledge District
Dover Knowledge District (DKD) will be an extension of One-North Business Park, and will create synergies between companies and research institutions in NUS.

Source:†URA Regional Highlights, Central Region

According to URA, DKD will offer integrated spaces to create new jobs and learning opportunities, and support Singaporeís long-term economic growth. Currently this area is zoned out for development and we should be able to see some progress in the next 5 to 10 years

Source:†URA Map

2. Jurong Lake District
Jurong Lake District (JLD) is intended to be a ìlive inî Central Business District (CBD), a mixed use area encompassing residential and commercial developments as well as amenities such as schools, parks, water features, galleries and other leisure facilities and community spaces, making it a all in one lifestyle hub.

It will span 360 hectares (ha), with 100ha of green spaces, 70ha of water bodies, and 17km of waterfront areas. According to JLDís website, the green spaces will be connected by the Green Loop, which is part of an extensive park connector and cycling network that will stitch the district and neighbouring residential areas together and link these areas to the Jurong Lake Gardens. This is reminiscent of Punggol but with more commercial developments, making it the largest regional centre outside the Singapore City Centre.

Source:†URA Map

JLD is strategically located near the new Tuas Port, NTU, NUS, high tech industries and Malaysia, making it a very attractive hub for regional businesses to locate. It is already a bustling mixed use district today but will continue to be developed to its fullest potential in 2040 and beyond, contributing 20,000 new homes and 100,000+ new jobs.

Source:†Jurong Lake District Website

3. Greater Southern Waterfront

The Greater Southern Waterfront stretches from Pasir Panjang to Gardens By The Bay East, a 2000 ha area consisting of 30km of Coastline. It will provide new housing, offices and attractions. There is an intention to revamp the Pasir Panjang Power District with its old and unused power stations and industrial buildings, and plans to create a new park in the form of Pasir Panjang Linear Park to link West Coast Park to Labrador Nature Reserve. There are not many details about this project for now as it is still in an early phase of planning and its development will have a longer runway than the previous 2 projects.

Source:†Jurong Lake District Website

4. URA Masterplan
Finally, we take a quick look at the URA Masterplan. From the map, we can see that there are 7 plots of land zoned out for development that are 15 mins walk away from Clavon. Currently they are earmarked as residential areas but this is still subject to change.

Source:†URA Map

In conclusion, Dover Knowledge District and Jurong Lake District have slightly more concrete plans right now and will have an impact on Clavonís price in the medium term of 5 to 10 years. However, JLD has a progressive development timeline up to 2040 and will probably have a greater impact in 20 years. Similarly, the Greater Southern Waterfront has a longer runway of 10 to 20 years. Hence, we do see some potential for a good exit in the medium term and are more confident in the long term.

Criteria 2 : Comparison to surrounding new launch projects
Next we compare Clavon to surrounding new launch projects to access its worth. We find that the nearest projects are within a 3km radius.

Parc Clematis is a 99 years leasehold (LH) project with 1,450 units in total, and has an estimated TOP date in 2023. Although Parc Clematisí distance to MRT is similar to Clavon (1.1km away), it has a slight edge over Clavon as it is within 1km from a popular primary school ñ Nan Hua Primary School.

There are 2 other new launch projects that are slightly further away from Clementi MRT ñ Whistler Grand (2.1km) and Twin Vew (2.2km). They are across the street from each other and are both 9 years leasehold projects. Whistler Grand also has a similar advantage to Parc Clematis, being within 1km from Nan Hua.

Next, we do a price comparison and analysis below. Please note that Clavonís launch price is estimated based on the indicative price and indicative PSF launched by the developer and is subject to change.

 

 

 1BR2BR 2BA3BR
3BR
Clavon (2024)
Sold Out~ 1.15mil to 1.36mil (764 sqft)~ 1.44mil to 1.71mil
(958 sqft)
Parc Clematis (2023)Sold OutFrom 1.165mil
(721 sqft)
From 1.42 mil
(861 sqft)
Whistler Grand (2023)From 0.78mil
(441 sqft)
(2BR1BA)
From 0.97mil (614sqft)
Sold Out
Twin Vew (2022)Sold OutSold Out(+ Study)
From 1.71 mil
(1,141 sqft)

Legend: BR ñ Bedroom; BA ñ Bathroom

Basis of Analysis

  • Pricing extracted from public information and accurate as of 14 December 2020
  • Clavonís pricing is based on indicative price launched by developer and is subject to change
  • Pricing only includes 5th floor and above, with the lowest available price as they represent the majority of buyer and investor demand and affordability
  • We compare 2BR 2BA as opposed to 2BR 1BA as 2BA is a more common product. Whistler Grand is an exception as it only has a 2BR 1BA option.

     

1BR Analysis
We can see that 1BR is in high demand with 3 projects sold out even for Twin Vew, a project that is not close to the MRT. This is not surprising as the attractive price in this area coupled with traditionally higher demand from tenants makes 1BR units alluring to investors. If you are an investor, It would be advantageous to keep an eye out for 1BR unit pricing for future new launches in this area.

2BR 2BA Analysis
Pricing is competitive between Clavon and Parc Clematis as both are similar distance to Clementi MRT. The big difference between the two as mentioned earlier is the fact that Parc Clematis is within 1km of Nan Hua Primary School and could be a better option for investors who are able to attract an additional type of tenant profile looking to send their children to a reputable primary school. Another edge that Parc Clematis has is its TOP date is 1 year earlier than Clavon, allowing it to be rented out earlier. For home stayers, the benefits are similar with Parc Clematis having an advantage over Clavon.

3BR Analysis
Due to its higher pricing, 3BR units are usually not a viable option for investors unless the entry price is uniquely attractive and able to give a good ROI which is not the case here. Hence, 3BR are usually more suitable for home-stay purposes. For a parent with children soon to enter primary school, Parc Clematis may be a more attractive option. However, Clavonís 3BR can be an option to consider as it provides a larger layout at a more competitive price at this point in time.

Criteria 3 : Comparison to surrounding resale projects
There are 4 resale projects of comparable pricing and project size (no. of units) within a 1.5km radius from Clavon

The most similar project for a close to apple to apple comparison is Clement Canopy, a 99 years LH project built by the same developer as Clavon. Both of them are located side by side, and Clement Canopyís TOP date was quite recent, in 2019.

The Trilinq is a 99-years LH project completed in 2017 and like Clavon, has a similar distance to Clementi MRT (1.1km away). Like Parc Clematis new launch, The Trilinq is also within 1km from Nan Hua Primary School.†

Further away from Clementi MRT (1.8km) is a freehold (FH) called The Parc Condominium. Though not the most convenient transport wise, it is close to amenities like NTUC FairPrice and Ayer Rajah Food Centre (less than 1km away) providing ease of access to daily necessities.

Lastly, there is Seahill ñ a 99 years LH project farthest away from Clementi MRT (2.4km). Despite this, its unique selling point is that it is located in the west coast area and has the best sea view.†

For the price comparison, we add another metric called price per square foot (PSF) on top of price. This is because there are certain resale units from older projects that are much bigger than their newer counterparts.

 

 

 1BR2BR 2BA3BR
Clavon (2024)~ 0.79mil to 0.94mil
1650 psf (527 sqft)
~ 1.15mil to 1.36mil 1650 psf (764 sqft)~ 1.44mil to 1.71mil
1650 psf (958 sqft)
Clement Canopy (2019)Not AvailableFrom 1.25mil
1,761psf (710sqft)
From 1.78mil
1,798psf (990sqft)
The Trilinq (2017)From 0.80mil
1,487psf (538 sqft)
From 1.18mil
1,686psf (700sqft)
From 1.49mil
1,592psf (936sqft)
The Parc Condominium (2010)Not AvailableFrom 1.40mil, 1,429psf (980 sqft)From 1.69mil
1,390psf (1,216sqft)
Seahill (2016)From 0.73mil
1,475psf (495 sqft)
From 1.26mil
1,463psf (861 sqft)
From 2.18mil
1,674psf (1,302 sqft)

Resale projects pricing is extracted from property guru and is accurate as of 14 December 2020

As the pricing for Clavon is indicative, the average PSF is estimated to be 1650 psf for all unit sizes

1BR Analysis
Currently, both The Trilinq and Seahill have 1BR options available. On a pricing basis, they are very competitively priced alongside Clavon with Seahill being the lowest. Hence as an additional layer of comparison, we take a look at price per square food or psf. The average psf for Clavon is 1,650 psf which is only slightly higher than the resale projects and is very reasonable for a new launch project. Hence, both The Trilinq and Clavon options to consider for investors with their close proximity to MRT. Though Seahill is lower priced, it may be risky to bank on its unique seaview feature as this may not appeal to all tenants. Distance to MRT is still a stronger selling point and hence we think Seahill may not be the best option.

2BR & 3BR Analysis
Prices are quite competitive for all the projects. For example, Trilinq and Clavon vary by a range of 30k to 50k for 2BR and 3BR respectively.†

Which would be a good project to buy into, older or brand new?

Under an investor lens, Trilinq may be a better choice as it is lower priced and rental can be collected almost immediately upon purchase while Clavon would take another 4 years to TOP. Not forgetting the edge Trilinq has in terms of being within 1km from Nan Hua Primary School which can be an advantage for both investor and home stayer.

Clement Canopy is relatively higher in terms of PSF as compared to Clavon indicative price. Given the fact that they are very similar in size, Clavon does have an edge as it is newer.

Seahillís 2BR has an attractive PSF compared to Clavon if a homestayer is looking to buy a larger place. That feature becomes more pronounced when we look at the 3BR units with Seahill 300 square feet bigger than Clavon. The downside is Seahillís 3BR is expensive in terms of psf and price and may not be affordable for many.

If lease is an important factor, The Parc Condominium being a freehold may be a good option to consider. The quantum may be higher than Clavon, but that is offset by the bigger unit size. The psf and price is also relatively affordable for a freehold unit, especially so when you compare it to Seahill.

Criteria 4: Unique Selling Points

For Criteria 4, we look at the projectís facilities, surrounding amenities as well as the developer track record.

Clavon has the standard full condo facilities which include a 50m pool. There are zero neighbour facing units which is one of its big selling points.†

The nearest primary school is Pei Tong which is within 1km form Clavon. In terms of popularity, Pei Tong (ranked 116th) pales in comparison to Nan Hua (ranked 5th) according to†salary.sg. The ranking is determined by the subscription rate, meaning Nan Hua is more oversubscribed by parents than Pei Tong during the application phases.

In terms of daily necessities, Clavon is in a good location with Sheng Siong a mere 3 mins walk away and NTUC Fairprice a short 15 mins walk away.

Clavon has two reputable developers (UOL Group & UIC) that have partnered many times in the past, and both are experienced in building premium projects. In addition, Clement Canopy right beside Clavon is developed by UOL so it has experience building quality projects in this area amongst others.

Conclusion & Exit Strategy
In conclusion, when we compare Clavon to other new launch and resale projects, we find that Parc Clematis and The Trilinq are good projects to consider before deciding on a condo in this area. Clavon has its own merits with regards to its facilities and amenities especially with its close proximity to MRT and supermarkets.†

It is also very competitively priced and affordable. Coupled with growth areas and plots of land to be developed in the area, we project a potential exit (profit made) according to the time frame as follows:

 

 

 DurationProjection for Possibility of Exit
Short ñ Term3 years immediately after holding periodPossible
Mid ñ TermWithin 5 years growthPossible
Long ñ TermWithin 10 years growthHighly Confident

 

Quick tips for anyone interested in purchasing new launch properties:

  • Purchasing property is a big decision. Always do your research and never rush or be rushed into making a hasty purchase.
  • Affordability is key. It is important to exercise financial prudence and consider whether you can afford investing in a property, whether it is for your own stay or investment purposes.
  • Property investments take a longer time to ripen as compared to other investments. Be prepared to hold onto a property for at least the next three years for capital gains.