Type

Units

Min Area

Price Range

Other

1453 sqft

S$3.3m

Property Highlights

Landed development with 1 unit currently available.
Prices currently start from S$3,338,888.
Located 9 min (720 m) from CR17 Clementi MRT Station.

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328 Clementi Ave 2: Commercial Shophouse Investment in a Thriving Precinct

328 Clementi Ave 2 stands as a compelling commercial property offering within one of Singapore's most established residential and retail neighbourhoods. Positioned along Clementi Avenue, this shophouse development capitalises on the district's sustained demand for mixed-use and retail space, supported by consistent foot traffic from the surrounding residential community and proximity to major transport nodes.

The location benefits significantly from its strategic placement within 720 metres of Clementi MRT Station, a major interchange on the Circle Line (CC22) and East West Line (EW23). This proximity translates to consistent visibility and accessibility for both retail customers and business-to-business operations. The catchment area encompasses a population of over 150,000 residents within a 1-kilometre radius, creating a substantial and stable customer base for ground-floor commercial ventures.

Architectural and Commercial Appeal

Units at 328 Clementi Ave 2 are configured with approximately 1,453 square feet of usable floor area, a dimension that accommodates diverse commercial models including independent retail, food and beverage, personal services, professional offices, and light industrial applications. The shophouse format provides street frontage and direct pedestrian access, critical advantages for businesses seeking organic walk-in traffic rather than relying solely on digital channels or anchor tenant patronage.

The development's position within a mature commercial strip means existing infrastructure—electrical, plumbing, fire safety systems—is aligned with commercial standards and regulatory codes. This reduces conversion costs and operational friction for incoming tenants or owner-operators planning immediate occupancy.

Investment Dynamics and Yield Considerations

Investors evaluating 328 Clementi Ave 2 should consider the rental trajectory within the Clementi commercial precinct. Shophouse retail in this district typically generates gross yields ranging from 4 to 6 per cent annually, depending on the specific tenant profile, lease length, and business type. F&B operations, which dominate the area, command premium rents but carry higher tenant turnover risk; professional services and personal care businesses tend to deliver more stable, longer-term lease agreements. Investors should conduct detailed tenant interviews and lease-term analysis before acquisition, as the quality and duration of tenant agreements directly influence net yield and capital stability.

When factoring acquisition costs, purchasers should budget for Additional Buyer's Stamp Duty (ABSD) if this is a second residential property purchase. A Singapore Citizen acquiring a second residential property faces an ABSD levy of 20 per cent on the purchase price, substantially increasing the total cash outlay at point of acquisition. For example, a purchase at S$3.3 million would incur approximately S$660,000 in ABSD alone, pushing total acquisition costs to S$3.96 million before legal and survey fees. This makes capital efficiency and rental yield alignment particularly important for second-property investors.

Clementi as a Retail and Mixed-Use Hub

The broader Clementi precinct has evolved into a multi-dimensional commercial ecosystem beyond traditional residential support retail. The district now hosts educational institutions, healthcare facilities, hospitality venues, and niche retail concepts that cater to both local foot traffic and destination shopping. This diversification reduces the risk profile for new shophouse investors compared to developments that depend entirely on neighbourhood convenience retail demand.

Recent capital growth within Clementi's commercial stock has been steady rather than explosive, reflecting the maturity of the location. Properties transacting in this corridor typically see price-per-square-foot (PSF) benchmarks ranging from S$2,200 to S$2,700 for shophouses in reasonable condition with active tenancies. 328 Clementi Ave 2's valuation sits within this competitive band, making comparative analysis straightforward for buyers undertaking due diligence against recently completed transactions and other standing shophouses in the immediate vicinity.

Accessibility and Tenant Recruitment

The nine-minute walk to Clementi MRT Station creates a compelling proposition for tenant recruitment, particularly for businesses targeting office workers, students, and commuters. This accessibility factor has historically supported faster leasing cycles and lower vacancy periods for commercial units in the immediate trading area. Businesses that benefit from passing trade—cafés, quick-service restaurants, beauty services—find strong operational sustainability when positioned within this proximity band to a major MRT interchange.

The transport nexus also generates planning certitude for future development and infrastructure investment. LRT extensions, bus network enhancements, and residential intensification around transport nodes are Government Land Transport Authority (GLTA) priorities. Any transport improvements in the Clementi corridor would likely reinforce demand for commercial floor space, benefiting long-term capital values and rental prospects for 328 Clementi Ave 2.

Owner-Operator Suitability and Professional Operator Models

Beyond passive investment, the shophouse format suits owner-operators with defined business models ready for immediate deployment. Professionals such as financial advisors, accountants, consultants, and medical practitioners frequently seek shophouse premises because they afford dedicated street frontage, flexible design customisation, and independence from landlord approval for signage and branding. The Clementi location, with its established professional services concentration, provides immediate network effects and referral opportunities for incoming professional-services operators.

Food and beverage operators have similarly found success at 328 Clementi Ave 2's address band, particularly concepts ranging from quick-service outlets to casual-dining establishments. The residential density and student population within a 500-metre radius provides a consistent demographic for culinary and hospitality ventures. Prospective purchasers with operational experience in F&B should conduct local competitor analysis and foot-traffic surveys to validate concept viability before committing.

Lease Tenure and Long-Term Capital Preservation

Shophouse investments in established commercial areas like Clementi typically offer reassuring lease-tenure profiles. Properties at 328 Clementi Ave 2 should be verified for remaining lease length; properties with 70-80 years remaining present minimal lease-decay risk over a 10 to 15-year ownership horizon. Buyers should obtain certified lease documents and seek legal counsel to confirm lease extension eligibility if tenure is approaching the 60-year mark, as this influences future refinancing and resale liquidity.

Commercial properties in Singapore benefit from lease-extension mechanisms that differ from residential leasehold dynamics. However, landlord negotiations and Government Land Authority (GLA) approval processes can introduce uncertainty into long-term planning. Prospective purchasers should factor potential renewal costs and timelines into their financial projections, particularly if holding beyond 15 years.

Financing and Debt Serviceability

Banks typically offer commercial property financing at Loan-to-Value (LTV) ratios of 60 to 75 per cent for shophouse investments, depending on tenant quality and lease-security metrics. At a purchase price of approximately S$3.3 million, investors can expect to structure financing between S$2 million and S$2.5 million, requiring corresponding equity of S$800,000 to S$1.3 million. Monthly servicing costs at current mortgage rates (typically 3.0 to 3.5 per cent) would range from S$9,000 to S$12,500 monthly, which must be comfortably covered by gross rental receipts to maintain positive cash flow and protect against tenant vacancy periods.

First-time investors or those with existing property portfolios should stress-test scenarios including temporary tenant vacancies, rental market softening, and interest-rate escalation to 4.5 or 5.0 per cent. These stress tests reveal whether accumulated equity and alternative income sources can sustain mortgage obligations during downturns, a prudent approach given commercial tenancy volatility.

Competitive Positioning Against Alternative Retail Assets

Within the Clementi district, shophouse buyers should compare 328 Clementi Ave 2 against nearby standing retail assets, including shophouses on neighbouring roads such as Clementi Road, Clementi West Street, and Commonwealth Avenue West. Competitive properties vary in tenant quality, lease terms, remaining tenure, and condition. On a PSF basis (dividing purchase price by usable floor area), establishing whether 328 Clementi Ave 2 trades at a discount or premium to comparable recent transactions informs valuation reasonableness and negotiation strategy.

The broader commercial market in West Singapore, particularly around the Bukit Merah and Clementi zones, presents alternative investment vectors. However, Clementi's transport connectivity and established residential support network differentiate it positively from more peripheral commercial areas, justifying comparable or modest premiums to alternative West Zone retail assets.

Future Growth and District Trajectory

Clementi's long-term planning outlook suggests continued intensification of both residential and commercial functions. The Government's Concept Plan and various Development Guide Plans earmark Clementi as a key neighbourhood centre, supporting sustained retail demand and gradual value appreciation. New residential units in adjacent areas will compound the customer base available to shophouse businesses, providing underlying structural support for rental and capital growth.

Property buyers should monitor announcements regarding new MRT extensions, new condominium launches, and commercial developments within Clementi and adjacent precincts. These announcements can signal demand momentum and influence the timing of acquisition decisions. Conservative investors typically acquire when major infrastructure projects are under construction (supporting eventual upside on completion) rather than after completion, when valuation premia have already been priced into asking values.

Conclusion: A Resilient Commercial Asset in an Established Hub

328 Clementi Ave 2 represents a mature, accessible commercial investment opportunity within one of Singapore's most proven and stable retail precincts. The development's shophouse configuration, proximity to Clementi MRT, and integration into an established commercial ecosystem position it well for investors seeking yield, owner-operators planning immediate occupancy, or portfolio builders diversifying into commercial real estate. Purchasers should conduct diligent tenant verification, lease-tenure confirmation, and comparative market analysis before commitment, ensuring acquisition price aligns with rental-yield projections and long-term capital-preservation objectives.

Frequently Asked Questions

What rental yield can investors realistically expect from a shophouse unit at 328 Clementi Ave 2?

Shophouse investments within the Clementi commercial corridor typically deliver gross rental yields ranging from 4 to 6 per cent annually, depending on tenant type and lease structure. F&B tenancies often command higher rents (5.5–6.5% gross) but carry elevated turnover risk and operational volatility; professional services and personal care providers tend to deliver more stable 4–5% yields over longer lease terms (3–5 years). Investors should examine specific tenant lease agreements and revenue stability before acquisition, as net yield after maintenance, property tax, and insurance can reduce the gross figure by 1–2 percentage points. Stress-testing scenarios with temporary vacancy periods (typically 2–4 months between turnovers in Clementi) is essential to validate serviceability.

How does the price-per-square-foot at 328 Clementi Ave 2 compare to recently transacted shophouses nearby?

The Clementi shophouse market has traded within a PSF band of S$2,200 to S$2,700 for properties in average to good condition with active tenancies. At a purchase price of approximately S$3.3 million across 1,453 sqft, 328 Clementi Ave 2 translates to roughly S$2,270 PSF, positioning it competitively within this range and suggesting fair market valuation relative to recent comparable sales. Investors should request recent transaction data from property agents for shophouses on Clementi Road, Clementi West Street, and Commonwealth Avenue West to verify whether current PSF comparables support this valuation or suggest upside/downside opportunity. Properties with stronger tenant profiles, longer lease terms, and better structural condition typically command premiums of 10–15% over baseline PSF benchmarks.

What are the Additional Buyer's Stamp Duty implications for a second-property purchase at 328 Clementi Ave 2?

A Singapore Citizen purchasing 328 Clementi Ave 2 as a second residential property must pay Additional Buyer's Stamp Duty (ABSD) at the current rate of 20 per cent on the purchase price. For a S$3.3 million acquisition, ABSD liability totals approximately S$660,000, substantially increasing the true cost of acquisition to S$3.96 million before legal, survey, and financing fees. This 20% ABSD significantly affects the capital efficiency calculation: investors must ensure projected rental yields and capital growth substantially exceed the cost of this tax to justify the second-property investment thesis. Structuring acquisitions through corporate entities or understanding available ABSD exemptions (for example, if purchasing a replacement residence) may offer tax-planning opportunities; prospective buyers should consult a tax advisor to explore legitimate minimisation strategies.

What lease-decay risk exists for shophouses at 328 Clementi Ave 2, and how does this affect resale value?

Shophouse tenure varies by specific property and should be verified through certified Land Registry documents before acquisition. Most shophouses in established Clementi retain 70–85 years of remaining lease; properties with 75+ years face minimal lease-decay risk over a 10–15 year ownership horizon. However, leases dropping below 60 years trigger refinancing difficulties and reduced buyer appetite, potentially constraining future resale values by 15–25%. Commercial lease extension mechanisms exist and typically allow landlord-initiated renewal negotiations 5–10 years before expiry, though extension costs and timelines introduce uncertainty. Buyers should confirm current lease tenure, remaining lease term, and the landlord's historical approach to renewal before committing, factoring extension costs (often S$50,000–S$150,000 depending on property value and remaining term) into long-term financial projections.

How does proximity to Clementi MRT Station influence demand and long-term capital appreciation for 328 Clementi Ave 2?

The nine-minute walk (720 metres) to Clementi MRT Station—a major interchange on the Circle Line and East West Line—creates a significant positive demand driver for 328 Clementi Ave 2. Properties within 10 minutes' walk of major MRT nodes typically command 10–20% capital premiums over comparable properties in peripheral locations, and experience faster leasing cycles (reducing vacancy risk) due to higher foot-traffic volumes and accessibility for tenants' customers. The transport hub attracts commuters, office workers, and students daily, providing a reliable customer base for retail and service businesses. Future Government Land Transport Authority (GLTA) infrastructure investments around Clementi MRT—such as bus network enhancements, pedestrian connectivity improvements, or adjacent residential intensification—would likely reinforce demand for commercial space and capital values. Properties at this proximity band have historically shown steady 2–4% annual capital growth, outpacing broader Clementi residential trends and validating the strategic value of transport-linked commercial assets.

Is 328 Clementi Ave 2 suitable for high-net-worth investors, upgraders, first-time buyers, or specific investor profiles?

328 Clementi Ave 2 appeals most strongly to experienced commercial property investors, owner-operators with defined business models, and portfolio diversifiers seeking yield-generating assets beyond residential real estate. High-net-worth individuals may view shophouse investments as portfolio ballast and inflation hedges, though the management responsibilities (tenant liaison, maintenance oversight) differ markedly from residential leasing. First-time property buyers typically should avoid commercial shophouses due to complexity, financing mechanics, and operational demands; residential properties offer simpler entry pathways. Upgraders (residential property owners seeking portfolio expansion) represent a natural fit, as they bring property-market experience and often possess the financial headroom to absorb ABSD costs. Food-and-beverage entrepreneurs, professional-services practitioners (accountants, advisors, clinicians), and multi-unit investors seeking recurring rental income represent ideal profiles for this development. Passive investors uncomfortable with tenant management or operational risk should consider commercial real estate investment trusts (REITs) rather than direct ownership.

What TDSR and financing headroom exist for typical purchase prices at 328 Clementi Ave 2?

At a typical purchase price of S$3.3 million, bank financing for commercial shophouses typically caps at 60–75% LTV (Loan-to-Value), requiring down payments of S$825,000–S$1.32 million. Monthly mortgage servicing at 3.0–3.5% interest rates would range from S$9,000–S$12,500 (assuming 25-year loan tenor). Total Debt Service Ratio (TDSR) regulations, which cap total monthly debt obligations at 60% of monthly gross income, require borrowers to demonstrate monthly gross income of S$15,000–S$21,000 to service this mortgage comfortably without breaching TDSR limits. Many commercial shophouse investors structure purchases through corporate entities or leverage rental income from the property itself to service debt; banks typically assign 70–80% of certified lease income toward serviceability calculations, reducing reliance on personal income verification. Investors with existing mortgages on residential properties or personal loans should stress-test cumulative TDSR impact; financial buffers of 3–6 months' mortgage payments are prudent to weather tenant vacancies or rental market softening.

How does 328 Clementi Ave 2 compare to competing shophouse developments in adjacent precincts (Bukit Merah, Commonwealth, Redhill)?

The broader West Singapore commercial market encompasses competing shophouse assets in Bukit Merah, Commonwealth, and Redhill zones. Bukit Merah shophouses typically trade at PSF premiums of 10–15% over Clementi due to higher population density and stronger foot traffic; Commonwealth shophouses often command similar valuations to Clementi but with less consistent tenant quality and mixed retail/industrial applications. Clementi's key competitive advantage is established residential support (150,000+ residents within 1km radius), strong MRT connectivity, and professional-services concentration. Redhill shophouses, while sometimes cheaper on absolute PSF terms, suffer from weaker tenant recruitment, lower foot traffic, and proximity to industrial estates (limiting premium retail/service concepts). Investors should compare not only purchase price but also tenant-profile stability, lease-term length, and local demographic trends when evaluating 328 Clementi Ave 2 against alternatives, as cheaper entry prices in competing precincts may conceal higher vacancy risk and lower rental resilience during downturns.

Which unit stack or floor levels at 328 Clementi Ave 2 offer the best value and end-user demand?

Ground-floor units at shophouse developments universally command premium rents (10–25% above upper floors) due to superior walk-in traffic, visibility, and suitability for retail/F&B operations. However, ground-floor units also carry higher maintenance costs (frequent cleaning, weathering from foot traffic), variable accessibility for mobility-challenged users, and exposure to street-level noise. Second and third-floor units appeal to office-based professionals (accountants, consultants, designers) who benefit from street frontage signage without ground-floor premium pricing, making them attractive for investors targeting professional-services tenants with stable 3–5 year leases. Upper-floor units typically generate 30–40% lower rents than ground-floor equivalents and are harder to lease unless specifically configured for storage or light-industrial use. Investors prioritising capital efficiency and consistent yield should consider mid-floor units (second or third story) occupied by stable professional-services tenants over ground-floor retail vacancies; conversely, owner-operators with defined retail/F&B concepts should target ground-floor positioning despite higher acquisition and operating costs.

What does the future supply pipeline in Clementi and West Singapore imply for demand at 328 Clementi Ave 2?

Clementi's long-term planning outlook emphasises continued intensification as a neighbourhood centre, supporting sustained residential and commercial development. New residential supply—including condo launches and HDB redevelopment projects within 1–2 km—will expand the customer base available to shophouse retailers and service providers, providing structural tailwinds for rental growth and capital values. Simultaneously, Government Land Transport Authority (GLTA) and Urban Redevelopment Authority (URA) planning documents signal potential upgrades to Clementi's transport connectivity and town-centre functions, though timelines remain uncertain. Investors should monitor announcements regarding new residential projects, transport infrastructure, and commercial developments in the Clementi precinct; acquisitions timed during infrastructure construction phases often deliver better value than purchases made after completion, when premia have already been reflected in prices. The relative scarcity of new shophouse construction in established commercial zones like Clementi (as compared to the steady pipeline of residential apartments) suggests limited supply-side competition for 328 Clementi Ave 2, supporting long-term rental and capital-value preservation.

328 Clementi Ave 2 — From S$3.3m