Parc Clematis Review, my ideal project that is really worth buying

We’re all expecting a potential recession in 2020, unless we can get out of this COVID induced market environment. Singapore has just embarked on a 3 phase approach to resume activities previously halted during circuit breaker.

Singapore has reopened economic activities that do not pose high risk of transmission of COVID. Schools have reopened and more businesses are allowed to resume operations.

People at Jem mall in Jurong, on June 11, 2020. ST PHOTO: MARK CHEONG

This COVID-19 pandemic has prompted our Government to draw up an unprecedented combination of four Budgets containing wage subsidies, tax rebates and rent relief to help companies and workers tie over this difficult period. These 4 budgets add up to almost S$100 billion.

But still, a worst-ever recession is on its way, with Singapore’s  economy expected to shrink between 4 and 7 per cent this year.

By restarting the economy on June 1, we hope to start the economy and get out of this impending recession.

Besides recession, there is another fear that is happening globally between US and China, these 2 superpowers need to sort out their differences and not engage in more trade war tactics.

Because tension between these two countries will affect global trade and will affect Singapore’s road to recovery.

This COVID crisis is different from SARS or the 2008 Financial Crisis.

The 2008 Financial crisis only affects the financial and insurance related industries, but COVID 19 caused a national lockdown, bringing a stop to almost all industries and it cause stress to many sectors.

But some new launches amid the Covid-19 outbreak in the first quarter still did pretty well.

The M, launched in February, sold 380 out of 522 units or 73 per cent by the end of March, and Parc Canberra EC sold 65 per cent, and OLA EC sold 31 per cent of its units.

More than 2,000 people visited The M’s sales gallery during the 522-unit condo’s preview on Feb 15-16.  PHOTO: WING TAI ASIA

This suggests that projects that are reasonably priced will find buyers in this market.

Usually, in a downturn or crisis, high end luxury condos which are not owner occupied, but rented out to well heeled expatriates, will suffer first.

But based on data from URA, it is shown that CCR properties are the most active during this circuit breaker period.

There were 102 units from CCR sold in April 2020.  Because many affluent buyers are seeing this as a good opportunity to grab a good purchase and they are confident the market will correct soon.

We believe many investors had built up their reserves during the good years and hope to pick up bargains during crises.

So, what is going to happen in the next few months? Is it a good time for those who have been waiting on the sidelines to jump into the market ?

Singaporeans are still into purchasing property, whether it is for upgrading, own stay or investment, because property unlike other investment platforms, can be seen and rented out.

I believe that it is a good time to enter market since developers are now very active and are giving good discounts to move their stocks.

Currently, many projects such as Treasure at Tampines, Riverfront, Affinity, Garden Residences, Florence Residences and Parc Clematis are giving very good discounts.

For me, my favourite is Parc Clematis.  This is because I grew up in Clementi, I know every eatery and every corner of Clementi. It is a place where I grew up from Primary school to University.

I have previously applied for DBSS Trivelis at Clementi Ave 4, and also evaluated Trilinq but did not purchase it because of the loft layout.

Parc Clematis is a 99 years leasehold development, comprising of 1468 units. There are a full range of 1 to 5 bedrooms in the towers, along with penthouses, bungalows, and terrace units.

Parc Clematis is located along Jalan Lempeng, District 5, just beside other condos, namely Regent Park, Trilinq.

Parc Clematis is indeed the place for both investment and home stay.

For my own stay, I like the fact that it is only 6 minutes walk away to Clementi MRT station, the East West line, that covers many places. There will also be a sheltered walkway in the future that links the condo to the MRT.

From the many news reports on the future Cross Island Line, it is reported that it will make a stop in Clementi, and the possible link up to the Green Line to form an interchange, so it should be located very near to Parc Clematis.

With this new Cross Island Line it will add value to Parc Clematis, a good growth in capital appreciation is expected and a good exit strategy when the line is operational.

And being near MRT , also means it is near to lots of amenities, from NTUC supermarket to food courts, shops, hair salons, library, and many more. It is almost as if you are staying in an integrated development.

Parc Clematis is situated in the middle of the education hub area stretching from Clementi to Dover. We have many good schools from Primary till University.

Primary schools include :

·        Clementi Primary

·        Pei Tong Primary

·        Nan Hua Primary.

For Secondary Schools there are

·        Clementi Secondary,

·        Commonwealth Secondary

·        Tanglin Secondary

·        New Town Secondary

·        Nan Hua High School

·        NUS High School

·        School of Science & Technology

For Post Secondary, Poly,

·        Ngee Ann Poly

·        Singapore Poly

·        ACS Independent

·        Anglo Chinese JC

International Schools around Parc Clematis include

·        International Community School

·        Dover Court International School

·        United World College SEA

·        Waseda Shibuya Senior High School

·        Nexus International School

·        The Japanese School

Universities

·        National University of Singapore NUS

·        Singapore University of Social Sciences, SUSS

With so many education places surrounding Parc Clematis, this offer rental potential from the school staff and students. Many tenants may come from this group of people from the education sector, thus increasing the rentability of Parc Clematis.

Parc Clematis is near to many work places, such as Buona Vista (Greater One-North) in east and Jurong (2nd CBD) in the west.

It is just one MRT stop away to Jurong East, the new CBD of the west. This new CBD has many offices and government departments as well as light industries.

Parc Clematis is also 2 MRT stops away to Greater One-North, Buona Vista MRT, the area where all the polis are, MediaPolis Metropolis, Biopolis, Fusionopolis.

These work places offer lots of job opportunities and high potential tenant supply.

Because Parc Clematis is so near to Jurong East, it will benefit greatly from the URA planning for Jurong Gateway

Jurong Gateway is being planned to cater to the diverse needs of businesses and create job opportunities for people who live nearby. The future HSR High Speed Rail is targeted to be built in Jurong Gateway by 2026.  This will definitely add value to Parc Clematis and possibly increase its capital growth.

This new Jurong Gateway is the new 2nd CBD and there will be more than 100,000 new jobs and as many as 20,000 new homes. It will offer new concepts of work-live-place with lots of tranquillity and recreation in store.

With more HDB BTOs being built in Clementi, it also means future upgraders from this MOP (minimum occupation period) group will look for condos in the Clementi, and makes Parc Clematis a good choice because it is newer.

Besides the connectivity offered by the cycling paths and park connectors, Parc Clematis is also near to many green areas, nearest being Faber Hill Playground.  Other green areas include West Coast Green and West Coast Place and Firefly Park along Clementi Ave 6.  Besides the West Coast Park, the residents of Parc Clematis can venture to these green areas for recreational purposes.

What I like most as a driver, is the ideal location of Parc Clematis.  It is situated so near to major expressways AYE, CTE and PIE, and it allows me to go to any part of Singapore quickly.

Now with COVID-19, developers are offering good circuit breaker discount.

My intention is to get a 3Bedroom unit since I am staying in a HDB 5Room unit, and I need 3 rooms. Parc Clematis towers are all elevated 16 m off the ground, that makes it 6 floors above. So getting a low floor unit in Parc Clematis is good as it is already 7 or 8 floor high.

Parc Clematis 3 Bed room unit is at a good size, so making it more affordable.  The 915 sqft unit is about the size of a 4Room HDB new BTO flat. The layout is well organised, and here is my take on its appeal

Pros :

• Main Door is wellplace, with exclusivity and privacy in mind
• Living Hall and Dining is well separated and spacious
• All the rooms are big enough for Queen size beds
• Balcony is not so big
• Bathrooms are well ventilated with windows
• Enclosed Kitchen is spacious and ventilated with windows

Cons :   Overall size is only the size of a 4 Room HDB BTO flat.

Taking the price of $1,377,000 for a 829 sqft unit #03-53, or a 915sqft unit, #03-61 at $1,433,000, we did a comparative analysis with the surrounding resale properties

It is almost on par with Trilinq,  it shows that being new it will have potential upside when it TOP in 2023.

It is a good entry price, you only need to pay 25% downpayment of $344,250 (cash & CPF) and a monthly instalment of $5,225 if you will to take a 20 year loan at 75% LTV.

What I like most about Parc Clematis is the layout and facilities.

Parc Clematis is designed with the Kindred Community feel, or Kampong Spirit feel.  It is the thoughtfulness of all the shared facilities which forms this kindred lifestyle community.

Parc Clematis has many social areas to gather in, including a communal working space and communal kitchen space and there are a variety of stylish dining pavilions: Mediterranean, Caribbean, Greenhouse, Teppanyaki, Wok It and Tea Place, all great for hosting family and friends.

This  development has a spacious area of 400,000 sqft. of facilities. It is designed to cater to a variety of property seekers.

The resort-inspired facilities include three exclusive 50-metre lap pools, an aqua-therapy pool, and hydrotherapy pool, plus one of Singapore’s largest freeform beach-inspired pool, which is 100 m in length.

This development also has 4 themed clubhouses (with entertainment room, games room, celebration halls), a gym, dance studio, 2 tennis courts and a basketball court.

There are so many facilities to cater to everyone needs..

Conclusion

There are many good projects with attractive discounts in the market.

And surely you will find one project that you really feel it is worth buying.

But before you decide on which way to go, you must know which scenario you are currently in.

If you are a first time buyer who has been waiting on the sidelines, then it is ideal for you because you can buy a private home without ABSD and can get highest Loan To Value 75% and you might be given priority if you opt for HDB or EC.

If you are staying in a HDB and want to upgrade, then you may want to consider new launch condo because you can choose to sell your HDB flat within six months after you take delivery of the new home and get ABSD remission.

But if you prefer to keep your HDB flat, then you have to decide if it is worthwhile to pay 12 percent ABSD, which is equivalent to 6 years of rental income from your HDB flat.

If you already own a condo and want to buy another for investment, then you need to work out the sums with your rental income and projected future capital appreciation.

You need to calculate after accounting for ABSD, mortgage repayments, property tax, maintenance and agent brokerage fees and miscellaneous expenses such as furnishing.

You also need to prepare for the event where you cannot find a tenant. If all these calculations points to a good investment then you should proceed.

To know if Parc Clematis fits your consideration of a new property , do give me a call and I can show you virtual tours of the project.  Do contact me or fix an e-appointment with me. Thank you.

Schedule time with me

Rick Fok is a realtor with OrangeTee & Tie Pte Ltd. He has been in this real estate business for 10 years.  He is very focus in helping his clients rent properties and he does help many customers to buy new projects according to their needs.  His interest include sports such as running and soccer besides just real estate work. He loves to connect with people to discuss properties related issues and gets enormous satisfaction in helping them fulfill their needs

If you have any queries on this topic or other , please do give Rick a call and he can arrange for a discussion over a cup of coffee.

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Is it better to buy an EC than a condo ?

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Buying a new launch or a resale property. Which is a better property for investment?

Do you keep or sell your HDB , when you upgrade to a condominium.