RIVERFRONT RESIDENCES PRICE
Riverfront Residences News:
Former Rio Casa estate, sold for S$575 million in en bloc deal
Rio Casa, a privatised HUDC estate, has been sold for S$575 million to a joint venture company Oxley-Lian Beng Venture.
The JV partners are KSH Development, Oxley Holdings, Lian Beng Group and Apricot Capital.
KSH Holdings said on Thursday (May 25) that the JV firm intends to apply for the grant of a fresh 99-year lease for the property and to redevelop the site.
“An estimated differential premium of S$208 million is payable to the State for the top-up of the lease and for the development of the site to a gross plot ratio of 2.8,” it noted in a stock exchange filing.
Rio Casa in Hougang Avenue 7 comprises seven blocks of 286 apartment and maisonette units. It has a site area of 36,811.1 square metres.
Under the Master Plan 2014, the site is zoned for residential use with a gross plot ratio of 2.8. This works out to a maximum permissible gross floor area of about 1.1 million square feet.
KSH Holdings, which has a 35 per cent stake in the JV, said it will fund its portion of the cost of the purchase by internal resources and bank borrowings.
Oxley Holdings holds a 35 per cent interest, Lian Beng Group at 20 per cent and Apricot Capital at 10 per cent.
Brisk new home sales and the recovering sentiment in the residential property market have fueled demand for development sites among developers.
As a result, analysts expect the collective sale market, which saw a resurgence in 2016, to remain active this year.
The first en bloc transaction this year – also marketed by Knight Frank – was One Tree Hill Gardens that was sold for S$65 million or about S$1,664 per sq ft to a unit of Lum Chang Group.
Another en bloc tender for 330-unit Eunosville – also an ex-HUDC estate – will close on May 31 at 3pm.
Owners at Eunosville in Sims Avenue expect offers of between S$643 million and S$653 million, which translates to about S$780 to S$790 psf per plot ratio.
How much will Riverfront Residences prices be during the launch?
A general guide by industry professionals is to deduce the estimated launch price of Riverfront Residences by studying the price paid for Rio Casa in the collective sales. By knowing the psf per plot ratio, we can add the estimated construction cost at about $400-$500psf and add another 10-15% profit margin for the developer. This will derive the estimated launch price for Riverfront Residences by Oxley-Lian Beng Group.
However a point to note is the Riverfront Residences price that you may have received from online sources or non officially appointed marketing agents is just an indicative price. The Riverfront Residences price will be released on launch day prior to commencement of booking. To have a more accurate and updated indicative price of Riverfront Residences, please contact us, the official developer appointed sales team.