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The demand for new condo launches in Singapore remains high as the island nation’s land availability is becoming increasingly scarce. Due to its growing population, Singapore is faced with limited land for development, resulting in stringent land usage regulations and a cutthroat real estate market. As a consequence, property prices continuously soar, making investments in real estate, especially in condominiums, a profitable prospect with the possibility of capital appreciation. With options such as New Condo Launches, individuals have the opportunity to enter the competitive real estate market and potentially reap financial benefits in the long run.
River Valley Apartments, a freehold condominium situated in the sought-after District 10, has been put up for collective sale by public tender. The development, which is located on River Valley Road, is being marketed exclusively by Knight Frank Singapore. The asking price for the property is set at $56 million, according to a press release issued by Knight Frank Singapore on Jan 6.
Built in the 1950s, River Valley Apartments is a four-storey development with 24 units. It sits on a freehold land area of approximately 12,408 sq ft that is zoned for residential use, with a gross plot ratio of 2.8. The property is situated just 500m away from Great World MRT Station on the Thomson-East Coast Line. In addition, it also enjoys convenient access to nearby amenities, such as Great World City and Valley Point Shopping Centre. Families with young children will also appreciate the proximity to River Valley Primary School and Alexandra Primary School, both of which are located within a 1km radius.
The site presents a potential opportunity for redevelopment into a boutique residential development, with a potential yield of 37 new units with an average size of 915 sq ft, according to Knight Frank. The guide price of $56 million translates to a land rate of approximately $1,622 psf per plot ratio (psf ppr), which includes a nominal land betterment charge. Taking into account the 7% bonus gross floor area allowed for balconies, the price further translates to approximately $1,583 psf ppr.
Chia Mein Mein, the Head of Capital Markets (Land and Collective Sale) at Knight Frank Singapore, notes that the property is located within close proximity to three Government Land Sale (GLS) sites that were successfully sold last year. In April 2020, a joint venture between City Developments and Mitsui Fudosan was awarded the Zion Road (Parcel A) site for $1.107 billion ($1,202 psf ppr). In June 2020, Wing Tai Holdings secured the GLS site at River Valley Green for $463.99 million ($1,325 psf ppr). This was followed by Allgreen Properties’ successful bid of $730.9 million ($1,304 psf ppr) for the Zion Road (Parcel B) site in August 2020.
Chia comments, “Despite subdued home sales activity in the Central Region, the continued interest in prime locations like River Valley and Zion Road reflects developers’ confidence in the potential demand for high-end properties when these developments are launched.”
According to Knight Frank’s estimates, if the collective sale of River Valley Apartments is successful, owners of the units, which range in size from 947 to 1,238 sq ft, can expect to receive minimum sale proceeds of approximately $2 million to $2.6 million.
The collective sale tender for River Valley Apartments will close on Feb 18 at 3pm. Interested parties can find more information on the latest listings for River Valley Apartments properties on EdgeProp Buddy, and also check out past rental and sale transactions for the development, as well as similar properties in District 10. The price trend chart for River Valley Apartments is also available for reference.