|No. of Rooms||Unit Type||Sqm||Sqft||From $PSF||Price Min.||Price Max.|
|2-Bedroom||B1-B2||86||818 & 840||2,680||$2,198,000||TBA|
|3-Bedroom||B3-B4||92||1,141 & 1,249||2,580||$3,027,000||TBA|
|3-Bedroom (PL)||B5-B6||105||1,507 & 1,711||2,770||$4,175,000||TBA|
The Jiak Kim Street site is a residential land site with commercial use on the first floor. The site was the former location of iconic nightspot Zouk and was released for sale from the Government Land Sale Reserve List at a reserve price of $689 million. The Urban Redevelopment Authority of Singapore (URA) stated that the land site can yield about 525 apartments when built up to 36-storey.
Spanning 13,482 square meters, located in core central district and has a frontage along Singapore River, the site was hotly contested by many real estate developers when launched for sale. The URA that is responsible for the tender received a total of 10 applications. The tender closed on 5 December 2017 with the winning bid going to Frasers Property Singapore.
Frasers’ winning was $955.4 million for an area of 145,120 square feet in size. At the permissible 3.8 plot ratio, the maximum allowable gross floor area for build-up is 551,451 sqf. This translates into $1,733 per square foot (psf) per plot ratio (ppr) for the prime land.
Developers were bullish about the location and were willing to make high bids for the site. Hong Leong Holdings and Hong Realty is the bidder of the second highest bid that is unfortunately only 0.6% lower than Frasier’s winning bid.
The price that Frasers paid for the land is a new benchmark for a leasehold 99-years land at a government land sale. According to Christine Li, Cushman & Wakefield research director, “The developer is probably pricing in a slight appreciation of around six to seven per cent for the selling prices of the future development. This is somewhat in line with the market expectation that prices of new homes will rise by around five to 10 per cent next year.”
Industry watchers invariably will compare the price for Riviere condo site to the price of the Martin Modern condo site. The $1,733 psf is about 40% higher than the $1,239 psf paid by Guocoland for Martin Modern in June 2016. Guocoland’s breakeven for Martin Modern is about $1,900 psf. To date, Martin Modern has sold off 305 units of its 450 total at the average price of $2,400 psf as of Feb 2019.
Many interested homebuyers are wondering what would be the breakeven price and eventual launch price of Riviere condo.
Based on the land price and estimated costs, the breakeven price for Riviere can be derived approximately. To the $1,733 psf for the cost of land, we need to add in the cost of construction and financing of $421 psf and $168 psf for professional fees, marketing and other costs. In sum, the breakeven cost for Riviere condo could be derived to be $2,321 psf. After factoring a standard developer margin for 20%, the estimated launch price for Riviere condo could be $2,786 psf.
In a nutshell, the following is a breakdown of the costs at a glance:
Land Cost: $1,733 psf ppr
Estimated Construction Cost: $421 psf
Estimated Professional Costs/Taxes: $140 psf
Estimated Marketing Cost: $28 psf
Estimated Breakeven: $2,321 psf
Developer’s Profit Margin: 20%
Estimated Launch psf: $2,786 psf
By comparison, the launch price of Riviere condo will be about 16% higher than the average $2,400 psf at Martin Modern. Some analysts had pointed out that the price premium of Riviere condo could be justified by it’s stronger and superior attribute over the Martin Modern site. For one, the Jiak Kim site can feature a riverfront living concept which is rare in the core region and many units can enjoy views of the river. Riverfront-ing developments are sought after projects by homeowners and tenants due to their better views. For instance, Rivergate, a resale condo near Riviere that is a very popular project.
Secondly, the Riviere location is more accessible to main roads as it is just off Havelock and Kim Seng roads than the Martin Modern site. This will allow easier access to public transportation and surrounding landmarks, such as Great World City Mall. The Jiak Kim plot is also nearer to the upcoming Great World and Havelock MRT station that are stops along the convenient Thomson-East Coast Line.
At the moment, there is no indicative launch price for Riviere but If we were to compare with the price of a resale market condo, we can use Riviere condo’s estimated launch price. For the benchmarking resale condo market, we can take the above-mentioned Rivergate as a benchmark as both are in somewhat the same location and enjoy great views along the Singapore River. As of February 2019, Rivergate, a 10-year-old condo, is trending it’s transaction price at $2,200 psf.
After comparison, Riviere condo is more than $500 psf or about 26% higher than Rivergate. This is not unheard of price premium for a new condo over an older one. However, it seems certain the developer Frasers Centrepoint Limited is set on a longer-term view of gradual property market price growth of 5% annually to achieve a steady sellout.
(All prices for Riviere displayed here are for reference purposes. Prices are subject to change from time to time without prior notice. This webpage cannot be held responsible for any inaccuracies, omissions and/or dispute.)
Book An Appointment to view Riviere ShowFlat & get VVIP Discounts (Limited Time), Direct Developer Price, & Hardcopy E-Brochure. Guaranteed with Best Price Possible.
Fill up the form on the right and get a copy of Riviere Price, E-Brochure, and Latest Updates!
Strictly no spam policy.