Tanjong Rhu’s draws — city-fringe location, waterfront views

By Michael Lim

/ The Edge Property |

October 21, 2016 10:30 AM SGT

Join our Telegram channel and follow our Facebook for the latest update.

In the 1990s, before there were Marina Bay and Sentosa Cove, the most-sought-after waterfront homes were in Tanjong Rhu, a residential enclave located off Fort Road. Condominiums there have views of the Marina Reservoir and Geylang River.

The biggest draw for the area now is its proximity to the CBD and the Singapore Sports Hub, as well as the amenities and recreational facilities there. A new road, Stadium Way, has increased accessibility from Tanjong Rhu to the Singapore Sports Hub and the Kallang area. The Tanjong Rhu footbridge brings residents directly from their condos to the Singapore Sports Hub, the Kallang Wave Mall and Kallang Leisure Park.

Over the past decade, Tanjong Rhu has developed into the residential enclave of choice for non-resident Indian (NRI) professionals and businessmen in the financial and tech sectors, most of whom have offices located in the CBD. Up to 65% of residents in the condos at Tanjong Rhu are NRIs, reckons Navin Bafna, associate team director at PropNex Realty. Some have become either permanent residents or Singapore citizens, he says.

View of the Tanjong Rhu area from Marina Bay Sands

Bafna at the poolside of Costa Rhu, where he lives

View from the 1,345 sq ft, two-bedroom unit on the 10th floor of one of the blocks at Costa Rhu that is available for lease

--thisisapagebreak

NRI magnet

The phenomenon began in 2005, when Singapore positioned itself as a wealth management hub and attracted private bankers, investment banks and fund managers to set up their offices here. Many of these firms in the financial services sector are headed by NRIs, says Bafna.

In 2005, Singapore was also deciding whether it should have the two integrated resorts with casinos. It had also introduced a foreign investors’ scheme in which people could invest $5 million in Singapore, part of which could be used to buy property, making them eligible for permanent residence. The scheme attracted many high-net-worth foreigners to Singapore, but has since been discontinued.

“That was when we saw a huge influx of wealthy and educated NRIs working in the financial services and IT sectors moving to Singapore,” says Bafna. “They liked Tanjong Rhu because it was the closest private residential enclave to the CBD then.”

In addition, NRIs like to stay with those from their community in India: for instance, the Marwari and the Gujarati, the two biggest business communities in India, adds Bafna, who is Marwari. “For me, staying in Tanjong Rhu makes me feel like I am still living in India because I can stay in touch with the community,” he says. Bafna and his Singaporean wife, Eliza Tan, purchased a 1,345 sq ft, two-bedroom unit at Costa Rhu for $1.37 million ($1,018 psf) in July.

Among the NRIs, another attraction of the condos in Tanjong Rhu is the unit sizes and affordability. Most of them like two-bedroom apartments that measure more than 1,000 sq ft and come with a proper maid’s room. For three-bedroom units, they want sizes above 1,500 sq ft; and four-bedroom units, from 2,000 sq ft. The proximity to sports facilities, East Coast Park and open spaces where they can play cricket is also important to most of them. “Cricket is the most popular game in India,” says Bafna.

Recent transaction prices of condos at Tanjong Rhu are hovering in the range of $1,100 to $1,300 psf, according to caveats lodged with URA Realis over the past two months. “This is because there have been no new projects launched in that area since Water Place by Far East Organization (FEO), and that was in 2001,” says Alan Cheong, head of research at Savills Singapore.

Children play cricket in an open field adjacent to Casuarina Cove and the upcoming Tanjong Rhu MRT station

Kallang Wave Mall is the nearest mall to Tanjong Rhu, just a 10-minute walk away via the Tanjong Rhu Footbridge

Kallang Leisure Park, with its cinemas and supermarket, is a 10-minute walk away via the Tanjong Rhu Footbridge

This 100m Tanjong Rhu Footbridge links Tanjong Rhu to the Singapore Sports Hub and Kallang Leisure Park

--thisisapagebreak

Cluster of eight condos

There are eight condo developments in Tanjong Rhu, including Water Place, and all but freehold Parkshore have 99-year leases. At 437-unit Water Place, which was completed in 2004, the most recent transaction was that of a 1,281 sq ft, three-bedroom unit on the 13th floor of one of the towers. It changed hands for $1.6 million ($1,249 psf) in September, according to a caveat lodged with URA Realis.

Prior to that, Sanctuary Green — a 522-unit, 99-year leasehold condo by GuocoLand that was completed in 2003 — saw a resale of an 829 sq ft, two-bedroom unit on the 10th floor of one of the blocks that fetched $1.06 million ($1,279 psf). In 2001, Frasers Centrepoint completed the 99-unit Camelot by the Water, a 99-year leasehold condo. The latest transaction was that of a 2,637 sq ft, four-bedroom unit on the sixth floor that went for $3.8 million ($1,441 psf) in July last year.

Parkshore, the sole freehold condo project in Tanjong Rhu, was developed by City Developments and completed in 1995. It was the first condo to be completed in Tanjong Rhu and contains just 152 units. In the most recent transaction in the condo, a 1,324 sq ft, three-bedroom unit on the fourth floor of the 10-storey block changed hands for $1.5 million ($1,133 psf) in August.

CapitaLand’s 510-unit Pebble Bay is the third-largest development in the area

Camelot by the Water is a 99-unit, 99-year leasehold development by Centrepoint Properties

Parkshore is the only freehold condo among the eight developments in the Tanjong Rhu area

Water Place by FEO was completed in 2004 and is the newest of the eight condo developments

The second project in Tanjong Rhu to be completed was Casuarina Cove, a 160-unit, 99-year leasehold condominium by Keppel Land, which was completed in 1996. The latest transaction at Casuarina Cove was that of a 1,593 sq ft three-bedroom unit on the eight floor of one of three blocks that changed hands for $1.67 million ($1,048 psf) in March.

The completion of Casuarina Cove was followed by that of Hong Leong Holdings’ 168- unit Tanjong Ria Condominium, a 99-year leasehold condo completed in 1997. The latest transaction in the condo was that of a 1,206 sq ft, three-bedroom unit on the third floor that fetched $1.2 million ($1,020 psf) in June.

The biggest project in Tanjong Rhu in terms of number of units is the 99-year leasehold, 737-unit Costa Rhu by Amcol (now Asia Food and Properties). The project was completed in 1998. The 510-unit Pebble Bay was also completed by CapitaLand that year. The latest transaction at the 99-year leasehold Pebble Bay was that of a 1,819 sq ft, two-bedroom unit on the first floor. It comes with a patio and was sold for $2 million ($1,099 psf), according to a caveat lodged in October.

“In terms of location, the Tanjong Rhu area offers value-for-money because of its proximity to the CBD and Sports Hub,” says Savills’ Cheong. He expects the rents and prices of condo units to appreciate when the Tanjong Rhu MRT station on the Thomson-East Coast line opens in 2023. Currently, the nearest MRT station is Stadium on the Circle Line, which is a 10-minute walk from Tanjong Rhu.

This article appeared in The Edge Property Pullout, Issue 751 (Oct 24, 2016) of The Edge Singapore.

Tags:

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter