Riverside 48 sees bulk purchase at $1,520 psf

  October 10, 2011

Robertson Quay condominium Riverside 48 saw a bulk purchase of 33 units on Sept 2 at an average price of $1,520 psf, based on URA Realis data from Aug 30 to Sept 6. The 33 units transacted are one-bedroom apartments, with sizes ranging from 689 to 904 sq ft. The buyers paid $1.03 million to $1.39 million for each unit. Ban Hin Leong was the developer of the project, which was launched in September 1997 and completed in 2000. United Overseas Bank was said to have purchased about 37 units at the time. And the 33 units that were sold in bulk recently are the ones owned by UOB, according to sources.

“The bulk buyer is likely to be a high-net worth investor or a group of high-net-worth individuals who are taking the long-term view,” says Jeremy Lake, executive director of investment properties at CB Richard Ellis. “It’s less likely to be a property fund because of the recent government measures, especially the seller’s stamp duty.” Since January this year, in the latest round of property-cooling measures, those who sell their property within the first four years of purchase will have to pay a stamp duty of 16% within the first year, 12% in the second, 8% in the third and 4% in the fourth.

The 10-storey Riverside 48 has a total of 70 units and is located along the Singapore River, in the River Valley district. It is also near the lively F&B clusters of Robertson Quay and Clarke Quay, as well as the CBD. Nearby amenities include the Clarke Quay MRT station and the Central Mall shopping centre. The property also has a three-storey commercial podium, which is leased out as offices.

Before it went bust, Ban Hin Leong built its reputation as a developer of quality properties, with its most famous development being landed housing project Springleaf Garden, made up largely of semi-detached houses. It also developed the 98-unit The Legend in Bukit Timah and Springleaf Tower, a 37-storey office building at Shenton Way.

At Riverside 48, owners of partially furnished one-bedroom units are asking for monthly rentals of $3,800, and rental yields are about 3%, according to property agents. “Riverside 48 attracts mostly local investors, who lease their units out, while tenants are mainly executives and expatriates who work in the nearby Raffles Place area,” says Alex Tang, group director at Dennis Wee Group and an agent brokering a number of units in the property.

In comparison, one-bedroom, 785 sq ft apartments at The Pier can command rentals of $4,300 to $4,800 a month. The 201-unit freehold The Pier by City Developments Ltd is located directly across the street from Riverside 48 and was completed in 2006.

According to Tang, the rental rates at Riverside 48 are lower than at newer apartments like those at The Pier. “However, Riverside 48 has a nice view, with floor-to-ceiling windows, lots of natural lighting and quality furnishings,” says Tang. “The lack of facilities has allowed for more spacious units, which you can’t find in newer properties.”

Source : The Edge – 26 Sep 2011