Oxley powers through fifth new launch this year with Riverfront Residences

By Timothy Tay

/ EdgeProp |

June 22, 2018 1:00 PM SGT

Singapore-listed property developer Oxley Holdings will preview its newest project, Riverfront Residences, over the weekend of June 23 and 24. The 99-year leasehold development on Hougang Avenue 7is Oxley’s fifth new launch this year.

Riverfront Residences will have a total of 1,472 units, comprising nine 17-storey blocks of apartments, 21 strata landed houses and six strata shops. The project is the Oxley-led consortium’s largest this year in terms of number of units.

The 1,472-unit Riverfront Residences will be launched on the weekend of July 7 and 8 (Pictures: Samuel Isaac Chua/The Edge Singapore)

Riverfront Residences occupies the site of the former Rio Casa, a 286-unit privatised HUDC estate. The site was purchased en bloc by Oxley Holdings and its joint-venture partners KSH Holdings, SLB Development (listed property development arm of Lian Beng Group) and Apricot Capital (investment arm of the Teo family of Super Group). The purchase price of Rio Casa in May last year was $783 million, which translates into a land rate of $706 psf ppr, including differential premium and lease top-up premium.

Priced to sell

Given that the Oxley-led consortium had purchased the site last year before land prices ran up, it is able to price the units at Riverfront Residences very competitively, from $1,200 psf.

“I don’t think we will see any new projects being launched in the price range of $1,200 to $1,300 psf for some time,” says Eric Low, deputy CEO of Oxley Holdings.

A 463 sq ft, one-bedroom unit is priced from $578,000 ($1,248 psf)

So far, launches of major suburban projects have been at average prices of above $1,300 psf. The first significant launch of a suburban project this year was The Tapestry in Tampines, where the average price on the launch weekend at end-March was $1,310 psf. The average price has since increased to $1,354 psf.

At Twin Vew on West Coast Vale, the average price of units sold at the launch weekend in May was $1,399 psf. Meanwhile, at Affinity at Serangoon, the average price of units sold was $1,558 psf, while the average price of units sold at The Garden Residences in early June was $1,641 psf.

Projects sufficiently differentiated

The same Oxley-led consortium behind Affinity at Serangoon is also the developer of Riverfront Residences. Oxley’s Low says both projects are positioned differently. The 1,052-unit Affinity at Serangoon is a redevelopment of the former Serangoon Ville privatised HUDC estate. The consortium had purchased the site in July 2017, two months after buying Rio Casa. The price it paid for Serangoon Ville was $499 million ($835 psf ppr).

Low: En bloc beneficiaries shopping for a replacement home will keep the new home-buying momentum going

According to Oxley, 123 of 300 units released at Affinity at Serangoon have been sold since the project was launched on June 2. According to caveats lodged, more than a third of the units sold at Affinity at Serangoon were three-bedroom apartments from 850 sq ft, which were priced above $1.3 million; four-bedroom strata houses of 2,067 sq ft each and priced between $2.33 million and $2.38 million were also sold.

“Affinity at Serangoon is near the Serangoon Gardens private housing estate,” notes Low. “Buyers are therefore looking for spacious units and the three-bedroom apartments were among the most sought-after.”

Riverfront Residences’ location, however, is in the vicinity of the HDB estates in Hougang, Upper Serangoon View, Punggol and Sengkang. Low therefore expects most of the buyers to be HDB upgraders. There has been no new launch of a private condominium in the area since the 1,165-unit Kingsford Waterbay on Upper Serangoon View more than three years ago.

Four-bedroom premium units have double-volume ceiling height in the living room, and a private lift

Even though Riverfront Residences’ launch comes just a month after Affinity at Serangoon, Oxley’s Low does not feel there will be any cannibalisation of sales between the two projects. “Riverfront Residences is a totally different project. I don’t believe we are dipping into the same pool of buyers as those at Affinity at Serangoon,” he says.

Unprecedented en bloc sales to fuel demand

Oxley intends to launch Riverfront Residences a fortnight from now, on the weekend of July 7 and 8. The developer will release 500 units. According to Eugene Lim, Oxley’s director of marketing and sales, more than 70% of the units in the project have “either a direct or partial view” of the river. Other units will have a view of the swimming pool, the lush landscaping or the neighbouring public park, he adds.

About 900 units at Riverfront Residences will be one- and two-bedroom units, and the remainder will be three- to five-bedroom apartments. One-bedroom units start from 463 sq ft and will be priced from $578,000 ($1,248 psf). Two-bedroom units start from 603 sq ft and are priced from $755,000 ($1,252 psf). Three-bedroom apartments start from 872 sq ft and are priced from $1.07 million ($1,227 psf). Premium three-bedroom units start from 1,066 sq ft and are priced from $1.26 million ($1,182 psf). Four-bedroom units start from 1,410 sq ft and are priced from $1.68 million ($1,191 psf).

Three-bedroom apartments start from 872 sq ft and are priced from $1.07 million ($1,227 psf)

According to Lim, the prices of the three-bedroom units are comparable to those in executive condos.

Oxley is confident that prices at Riverfront Residences will be the main attraction for homebuyers. According to Low, there were 33 en bloc sales worth $8.7 billion last year. In the first half of this year alone, 30 en bloc sites have been sold for more than $9.5 billion. “This is unprecedented,” says Low. “When many of these en bloc beneficiaries start shopping for a replacement home after they get their proceeds, this will keep the new-home sales buying momentum going. It will help the residential market maintain a healthy equilibrium.

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