FRX Capital unveils maiden condo project The Hillshore, with prices from $2,500 psf

January 12, 2024

Homegrown real estate development company FRX Capital (formerly Fraxtor Capital), known for its portfolio of landed properties, is set to launch The Hillshore, its first condo development in Singapore. Located on Pasir Panjang Road in District 5, the freehold development will be open for preview on Saturday, Jan 13.

The freehold development will be open for preview on Saturday, Jan 13 (Photo: FRX Capital).

Previously, the Pasir Panjang site housed the freehold 12-storey Gloria Mansion residential development. It was sold en bloc for $70.3 million in 2022 to FRX Capital and a group led by the family offices of real estate veterans Daniel Teo and his brother Teo Teck Weng, of Singapore developer Tong Eng Group.

The founders of FRX Capital — Oliver Siah and Rachel Teo — also started Fraxtor Singapore, a Singapore-based blockchain-enabled real estate investment platform. It is regulated by the Monetary Authority of Singapore and has participated in funding a variety of investment projects in Singapore and Australia, including the Pasir Panjang site. Meanwhile, FRX Capital is a separate company with a track record of prestigious landed residential projects in Singapore.

The Hillshore comprises two 5-storey blocks on a site area of about 45,726 sq ft. The 59-unit development features a mix of two- to four-bedroom units that range from 733 to 2,161 sq ft, including four 4-bedroom dual-key units of 1,467 to 2,161 sq ft. There are also 13 penthouse units of 895 to 2,161 sq ft.

The development is situated on an elevated site that slopes down towards Pasir Panjang Road. As a result, the rear five-storey block has a high elevation and units on the third floor and above look over the entirety of the front residential block.

The Hillshore is situated on an elevated site that slopes down towards Pasir Panjang Road (Photo: FRX Capital).

Greater Southern Waterfront views

Most units on the fourth and fifth floors of both blocks will have unobstructed views of the Greater Southern Waterfront (GSW) and the Kent Ridge Park, while those on the third floors and below on the inner side look out to the development’s swimming pool and surrounding greenery. The lower-floor units on the road-facing side will look out to the main Pasir Panjang Road and landed properties across the road.

The condo’s close proximity to various higher educational institutions has informed the design of units at The Hillshore. The Hillshore is close to educational institutions such as the National University of Singapore (NUS), ACS Independent Boarding School, and Curtin University. It is also less than a 20-minute drive to the CBD area and retail, entertainment and leisure destinations, such as VivoCity, Bukit Timah Nature Reserve and Resorts World Sentosa.

According to Siah, rental demand for well-spaced units in this area is expected to be strong, and the layout design for units at The Hillshore is flexible to accommodate tenants.

For example, each of the two-bedroom units comes with an en suite toilet for the master bedroom and a common toilet that could be redesigned into an en suite for the second bedroom. This enables owners to rent two en suite bedrooms.

Rental demand from students

Based on a survey of potential owners and buyers, Siah says that many homeowners within the area rent out their units to NUS students. “When we went to visit the site, we saw many textbooks and study notes left behind by the previous tenants. A lot of the units were rented out to NUS students because of the close proximity.”

Still, Siah foresees that most of the units at The Hillshore will be taken up by homeowners, based on FRX Capital’s market survey. “That being said, homeowners may also want the ability to rent out one of their rooms. So we think that by being able to partition some of the units this way, we are able to do better [in selling the units],” he adds.

He anticipates that the four-bedroom units will be an attractive option for these types of owners. A typical four-bedroom unit at The Hillshore will feature an en suite junior master bedroom that is fitted with a kitchenette and wardrobe, next to the entrance foyer. This makes it easy to partition the unit into separate living areas.

For buyers with teenage children, the four-bedroom penthouses are duplexes with an en suite master bedroom on the top floor that features a kitchenette, wardrobe, and living space.

Units are expected to be priced between $2,500 and $2,600 psf. Freehold developments in District 5 (Pasir Panjang/Buona Vista/Clementi/West Coast) have typically commanded around this price range.

Terra Hill at Yew Siang Road, off Pasir Panjang Road, was launched in February last year. The 270-unit freehold condo is jointly developed by Hoi Hup Realty and Sunway Developments. It is a redevelopment of the former Flynn Park Condo which the joint-venture partners purchased en bloc for $371 million in September 2021.

Prices in the vicinity have climbed since 2018. The 99-year leasehold Kent Ridge Hill Residences on South Buona Vista Road, off Pasir Panjang Road, previewed in 2018 at an average price of $1,700 psf.

Facilities at The Hillshore include a 25m-by-6m swimming pool, a gym and a badminton court in the central courtyard on the ground floor. There is also a function room on the same floor, which consists of a lounge area, a smaller pool and a barbecue pit area.

At the basement of the building, there is a carpark with 59 lots, including four electric vehicle chargers.

Location, location, location

Teo shares that location is an important criterion in FRX Capital’s projects. “I think the buyers are discerning enough to know that location plays a big part in maintaining asset value, such as the proximity to MRT stations, good amenities, infrastructure, schools, and distance to CBD… It’s all about location and what’s coming up in that location. For us, that is the Greater Southern Waterfront area,” she says.

The Hillshore is about a five-minute walk from Haw Par Villa MRT Station on the Circle Line. When future stations — Keppel, Cantonment and Prince Edward Road MRT stations on the Circle Line — are completed by 2025, residents can travel directly to the CBD area via train. The development is also accessible by the West Coast Highway and Ayer Rajah Expressway.

“This is a very prosperous site (on a sloping hill) according to Chinese feng shui principles. You have the mountain behind you. There is also a nice view of the greenery at the back which will be visible since the property is taller than the neighbouring Palisades development,” Siah notes. The Hillshore is located near the GSW area, which will be undergoing major redevelopment. It comprises 30km of coastline stretching from the Gardens by the Bay East area to Pasir Panjang and spans 2,000ha of land.

Around 6,000 HDB flats will be built on the 48ha Keppel Club site in the GSW, with the first Build-to-Order project to be launched for sale within two years. Another 3,000 private residential units are expected to be built in the GSW. About 20% or 10ha of the Keppel Club site will be set aside for parks and open land.

The government is also planning to develop the area into an office district. Plans are underway to link the green spaces in the area to form a connected park from West Coast Park to the East Coast Park, and to bring in entertainment spaces and lifestyle destinations.

Siah says that these upcoming developments make the property’s location a choice site. “Today when we buy real estate, it’s all about location, location, location. It’s about what’s coming up next, where the nearest MRT station is, and the amenities nearby.”

From landed houses to condos

The Hillshore marks FRX Capital’s first foray into condos in Singapore. So far, the developer has focused on prime and luxury landed properties, such as semi-detached and terraced houses and bungalows.

This includes its latest development, Mount Rosie Signature Collection in District 11, that was launched for sale in August 2022. This hilltop project comprises two bungalows and four terraced houses. It won the Top Landed Development award in the Uncompleted (Central) category at the EdgeProp Singapore Excellence Awards last year. This marked the developer’s first win at EdgeProp Singapore ’s annual property awards.

Teo says that the firm’s experience with developing luxury landed properties has driven it to provide quality appliances and furnishings at its condo project. This includes installing built-in ovens, induction cooker hob and hood from the luxury Swiss appliances provider V-Zug, as well as Samsung fridges and washer-dryer machines.

“Almost all of our landed properties are installed with V-Zug appliances. So we brought that over from our experience with landed houses. We wanted people to have quality appliances and finishings… We wanted to make sure that our development has a certain degree of standard compared to other developments,” Teo explains.

The Hillshore will be closely followed by the launch of a new project later this quarter — the redevelopment of the former 40-unit La Ville at 6C and 6D Tanjong Rhu Road, which is slated to be launched towards the end of 1Q2024. The freehold site was acquired by Hong Kong-listed property firm ZACD Group for $152 million ($1,540 psf per plot ratio) in 2021.

The two launches come amid a competitive private residential market, with 30 launches expected in 2024. Still, Siah is positive that the absorption rate from buyers will be strong this year. He expects the market to be more stable compared to 2023 in terms of demand for residential property. “I think the Dragon Year will be more positive,” says Siah. “I’m cautiously optimistic…with the Fed cutting interest rates, and in Singapore, a lot more foreigners are coming here. So this also builds demand in the real estate market as well.”

Moving forward, FRX Capital is setting its sights on Government Land Sale sites that have good locality. Looking ahead, the future pipeline of development projects by FRX Capital could be a mix of landed and upmarket condos. However, Teo says that the sites it acquires will depend on the pricing and locational attributes.

“For example, there are certain landed properties in certain districts that just don’t do quite well, but you just shift a few blocks away and it does so much better. It really depends on the location. So we have to be a bit more discerning on where to buy and enter at the correct price point. The same goes for condos,” he adds.

For now, FRX Capital is focused on the upcoming preview of The Hillshore. The showflat is located along Prince Charles Crescent and the sales launch is planned for Jan 27.

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