Project Spotlight: RiverGate

There has been notable increase in the number of transaction at the 545-unit RiverGate early this year. Last december, the pace of transactions in the freehold development took a plunge following the property cooling measures introduced by the government on Dec 8, but the recent spike in transactions at the waterfront project along the Singapore River indicates that there is renewed interest in the area.

A 1,841sqft, four-bedroom apartment on the 31st level of RiverGate recently fetched $3.6 million ($1,956psf) in the resale market, according to the latest caveats lodged and downloaded from URA Realis as at Feb 8. The seller had purchased the apartment from the developer in October 2006 for $3.03 million ($1,645psf), and hence enjoyed a capital gain of 18.9% in five years. The price achieved for the unit, however, is nowhere near the peak in May 2007, when a 3,143sqft unit on the 40th level was sold for $8.5 million ($2,701psf).

Prior to the sale of the 1,841sqft unit, a 2,077sqft, four-bedroom apartment at a neighbouring block was transacted for $4.3 million ($2,090psf), according to a caveat lodged on Jan 19. The seller had purchased the unit on the 18th level in June 2009 for $2.95 million ($1,420psf).

On Jan 17, a 1,507sqft, three-bedroom apartment on the 21st floor of the same block changed hands for $2.8 million ($1,851psf). The previous owner paid $2.3 million ($1,551psf) when he purchased the unit in July 2009, thus recognising a profit of 19.3% in just over two years.

In the three months prior to the government’s announcement of the additional buyer’s stamp duty (ABSD) on Dec 8,2011, apartments at RiverGate were going for $1,980 to $2,173psf. The highest unit price achieved last year at the freehold condo was for a 2,077sqft unit on the 41st level that was sold for $4.7 million ($2,262psf) in June 2011.

Benny Lim, a sales director at DTZ Debenham Tie Leung, admits that the cooling measures, coupled with the global economic uncertainty and year-end holidays, led to a slowdown in transaction volume in December. Developers sold only 623 new homes that month, a 63% plunge from November, and the lowest level in two years since December 2009. “the ABSD will take some getting used to, but I believe the property market will begin to pick up in the coming months,” says Lim. “Properties in Robertson Quay have always been a favourite among investors, so the demand will always be there.”

Lim, who is also marketing a few units at RiverGate, says the average asking price for a three- or four-bedroom unit is $2,000 to $2,300psf. “The prices vary, depending on the orientation of the units and, of course, those that command a premium are units overlooking the Singapore River or with unobstructed city view on high floors,” he adds.

Developed by CapitaLand and Hwa Hong Corp, RiverGate was awarded landmark status by the URA – the first residential project in Singapore to be accorded the status. While most of the property developments along the Singapore River have a height restriction of 10 storeys, RiverGate‘s three towers are 43 storeys tall. The project also sits on one of the largest sites in the area. In addition to the uninterrupted views, residents also enjoy full condo facilities, direct access to the riverfront promenade and amenities such as a convenience stored and an Italian pizzeria and grill.

RiverGate tends to attract interest from investors from Indonesia and mainland China. DTZ’s Lim still received inquiries from these investors for the units he is currently marketing. “After more than a month, these investors are beginning to get used to the idea of the 10% ABSD, and have included it as part of their overall transaction cost,” he adds. “And they are still keen to invest in Singapore.”

Keith Tan, director of APRO Realtors, agrees and notes that rental rates at RiverGate have risen rapidly since its completion in 2009, as the project is popular with expatriates. A three-bedroom unit at RiverGate now fetches $8,500 to $10,000 rent a month, he says. Two-bedroom units, “which are exceptionally popular”, can command $6,500 to $7,000 a month, adds Tan, who recently rented out a two-bedroom apartment for $6,900 a month. Two years ago, two -bedroom units fetched $4,500 a month, while three-bedroom units were rented out at $5,000 to $6,500 a month.

Source THEEDGE SINGAPORE

The wife and I have been into and around the compound of RiverGate a number of times. We quite liked the project (externally) but have yet to see what the interior of the apartments are like. However, there is one aspect of RiverGate that we do not particularly like – the parking for the F&B outlet is located within RiverGate itself. And although parking meant for patrons are separate from those for residents, everybody still go through the same main entrance and into the development. This reduces the “privacy” factor, which we would expect a lot more of, if we are paying in excess of $2,000psf for a unit.

Click on link below to read our previous post on properties in the Robertson Quay/Martin Road area
http://sgproptalk.blogspot.com/2011/10/property-spotlight-robertson-quaymartin.html
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Property Spotlight: Robertson Quay/Martin Road

The fully sold, 302-unit freehold Martin Place Residences obtained its temporary occupation permit (TOP) just last month. Enterprising property agents are already milling about in the area, showing units for lease and sale on the secondary market.

There were two transactions at Martin Place Residences over the week of Sept 13 to 20, based on the latest caveats lodged and downloaded from URA Realis as at Oct 6. One was the sale of a one-bedroom, 592sqft unit on the 25th level, which changed hands for $1.25 million ($2,111psf). The seller had purchased it for $1.022 million ($1,726psf) in June 2009, when the project was relaunched. The seller saw a price appreciation of 22.3%.

Meanwhile, at the neighbouring block of the twin-tower development, a 1,722sqft, three-bedroom apartment on the 31st floor changed hands for $3.7 million ($2,150psf). The seller had paid $2.87 million ($1,664psf) when it was purchased in August 2009, hence, recognizing a 29.2% price gain in two years.

According to Benson Koh, senior group district partner of SLP Real Estate Empire, the 1,722sqft, three-bedroom units have seen prices escalating on the secondary market, with owners asking prices in the range of $1,900 to $2,200psf, despite the uncertainty hanging over the global economy in recent months.

The riverfront neighbourhood of River Valley- Mohamad Sultan-Robertson Quay has become a sought-after residential district, given the short driving distance to both the CBD and Orchard Road, say property agents. There’s also the waterfront lifestyle, with the waterfront promenade so that people can enjoy a pleasant walk along the Singapore River, and the numerous retail and F&B enclaves at Boat Quay, and Clarke Quay.

Projects such as Martin Place Residences therefore appeal to local and foreign investors, especially those from China and Indonesia. “Three-bedroom apartments in the area tend to fetch good rentals, ranging from $7,500 to $9,500 per month,” says Koh.

Just down the road from Martin Place Residences is SC Global’s 88-unit Martin No. 38. The three commercial units in the project have already opened, and tenants are a boutique gym, The Mill, and two restaurants, Graze and Kha. The residential portion will only be completed by year-end. However, all the 65 residential units launched to date have been sold, according to URA new-home sales at end-August. The most recent transaction at the condominium was for a 969sqft unit on the 6th floor that was sold in August for $2.274 million ($2,347psf). Prior to that, a high of $2,962psf was achieved in May, when a 1,485sqft unit on the 14th level was sold for $4.4 million.

Meanwhile, across the street on Martin Road is the 545-unit RiverGate, which has restaurants overlooking the Singapore River, as well as a grocery store. The 99-year leasehold  freehold condo was developed jointly by CapitaLand and Hwa Hong Corp and completed in 2009. The most recent transaction at the condo was for a three-bedroom, 1,539sqft apartment that was sold for $3.15 million ($2,046psf) last month.

Rental rates for three-bedroom apartments at Martin Place Residences are likely to be comparable with those at RiverGate, says a property agent who declined to be named. The latter is sought after by families owing to the facilities, landscaping and direct access to the promenade as well as the restaurants along the Singapore River.

The Robertson Quay neighbourhood has seen an increase in interest this year, not just in the new developments, but existing condos as well. An example is the 206-unit Watermark Robertson Quay by Hong Leong, which was completed in 2008. The latest deal there was for a 1,324sqft unit on the 5th level that was sold for $2.1 million ($1,586psf) last month. The seller had purchased the unit when it was launched in 2005 for just over $1.22 million ($923psf), hence realising a capital appreciation of 71.8% over the last six years.

At the 186-unit freehold Robertson 100 by MCL Land, which was completed in 2004, an 872sqft unit was sold last month for $1.46 million ($1,675psf). This was the third time that the unit has changed hands on the resale market. The original owner, who bought it from the developer, paid $797,400 ($915psf) for the unit in 2004. He then sold it in 2007 for $1.1 million ($1,262psf), realising a gain of 37.9% in three years. The buyer then sold it two years later for a slightly higher price of $1.2 million ($1,376psf) in 2009. The recent seller who purchased the unit for $1.2 million in 2009 and sold it for $1.46 million ($1,675psf) enjoyed a 21.7% appreciation over the last two years.

Source: THEEDGE SINGAPORE

With some time in our hands yesterday, the wife and I decided to drive down to the Robertson Quay/Martin Road area to take photos of the various developments mentioned in the above article. We were quite impressed with Martin Place Residences… from the outside at least. We also liked what we saw at RiverGate although we were not real impressed with the food from one of the restaurants located within the condominium, which we found a tad over-rated.

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