Jiak Kim Street, located near Kim Seng Road, is the former site of the renowned local nightclub Zouk, which had been there for 25 years before the site was put up for tender. Singapore-listed company Fraser Property beat out nine other firms to win this coveted piece of land.
Today, a new luxury condominium is under construction on this 145,117 sq ft waterfront plot, featuring 455 residential units across two 36-storey towers. Scheduled to obtain its Temporary Occupation Permit (TOP) on January 1, 2023, Rivière is set to become the newest icon near Robertson Quay. Given the project’s location along a 300-meter bend of the Singapore River, all units are guaranteed to have uninterrupted river views.
Rivière is part of a mixed-use development called Frasers Promenade. Adjacent to the residential towers is a new four-storey building with 72 serviced apartments, named Fraser Residence, which will be managed by Fraser Hospitality, the hospitality arm of Fraser Property. Guests can enjoy 24-hour concierge services, room service, in-residence dining, limousine services, and dog-walking services.
Residents of Rivière will enjoy the same privileges as hotel guests, including a complimentary membership to the Fraser World Programme. Most importantly, residents will enjoy preferential rates at the serviced apartments, which will be very convenient when friends and family from out of town visit.
Three adjacent century-old warehouses, once home to Zouk, have been conserved. They will be transformed into a 24/7 lifestyle hub where Fraser Property has designed an upscale marketplace featuring a bakery, a premium bar, restaurants, and a social kitchen where residents can enjoy breakfast, lunch, afternoon tea, and dinner. Other facilities include meeting rooms and co-working spaces, ideal for the current era of hybrid work.
Prime Location, Attractive Entry Price
Rivière is situated in the heart of Robertson Quay, located between the Central Business District and Orchard Road. It is also within a three to four-minute walk of two MRT stations on the Thomson-East Coast Line (Havelock and Great World, respectively).
Local Singapore property agent Leo Kwek notes that Rivière’s proximity to two new MRT stations, the amenities at Frasers Promenade, and the F&B and lifestyle facilities at Robertson Quay and malls like Great World and Valley Point are highly attractive to both residents and tenants. He adds, “Therefore, Rivière’s location ticks all the boxes for residents and tenants seeking a convenient location.”
Since its launch in May 2019, about 43% of the units at Rivière have been sold at an average price of S$2,697 per square foot. Fraser Property will be releasing its latest batch of 40 apartments with promotional prices starting from S$2,413 psf. Leo Kwek of AnjiaSG states, “This price point makes Rivière an attractive purchase.”
Leo Kwek points out that recent 99-year leasehold property launches in the riverfront vicinity have sold at an average of around S$3,000 psf, while prime freehold projects have averaged S$3,200 psf over the past year.
With housing inventory dropping to a new low of 15,000 units, and strong demand for newly launched and larger homes, developers were snapping up development sites in 2021 at record prices through the Government Land Sales programme and collective sales.
It’s not just land prices that have been rising; construction costs are also high, largely due to Covid-related global supply chain disruptions and shortages of labor and materials. As a result, current construction costs are 30% higher than before the pandemic.
Despite the latest property cooling measures introduced on December 16, AnjiaSG expects private housing prices in 2022 to grow by about 3% to 5%, in line with Gross Domestic Product (GDP) forecasts.
Compelling Returns
After all, real estate is widely considered the best hedge against inflation. Therefore, buyers who purchase units at Fraser Property’s latest promotional prices are likely to have a greater chance of achieving higher capital appreciation and rental growth.
At the new promotional price, an 818 sq ft two-bedroom apartment on the 20th floor of Rivière has an asking price of S$2.24 million (about S$2,740 psf). Meanwhile, a 1,173 sq ft three-bedroom apartment on the fourth floor of Rivière will have a price of S$2.85 million (about S$2,431 psf) after the promotional discount.
The market average rent for newly completed three-bedroom apartments near Robertson Quay is S$8,000 per month. At this rate, the estimated annual rental income for a three-bedroom unit at Rivière could be S$96,000 per year. According to Fraser Property’s estimates, assuming a holding period of five years, the total income during this period would be equivalent to S$480,000.
This bodes well for Rivière, as the project is expected to be completed in the first half of 2023, well ahead of the launch of other new projects. After all, property consultant Leo Kwek estimates that rents will continue to rise next year as more foreigners return to Singapore via the Vaccinated Travel Lanes. This means increased demand for rental properties, which will also lead to higher rents.
Buying Property Under a Trust
The latest property cooling measures may lead to a slowdown in homebuying activity. However, this also coincides with the traditional year-end holiday season. Veteran real estate industry observer Leo Kwek believes that homebuyers will use this period to take stock of their options.
Lee Liat Yeang, a senior partner in the real estate practice group at Dentons Rodyk, stated, “After the pause, homebuying activity should resume as underlying demand appears to be strong.” “Potential buyers affected by the higher Additional Buyer’s Stamp Duty (ABSD) will consider legal options such as decoupling, buying in their children’s names, or buying a property under a trust for a child under 21.”
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