A prime freehold condominium, River Valley Apartments, located on River Valley Road in District 10, has recently been put up for collective sale through a public tender. According to a press release on January 6th by Knight Frank Singapore, the exclusive marketing agent, the property is priced at $56 million.
Built in the 1950s, this four-storey development consists of 24 units and occupies an area of approximately 12,408 sq ft. It is zoned for residential use with a gross plot ratio of 2.8. The location is highly desirable, being only 500m away from the Great World MRT Station on the Thomson-East Coast Line. In addition, residents can easily access nearby amenities such as Great World City and Valley Point Shopping Centre. There are also excellent schools in the vicinity, with River Valley Primary School and Alexandra Primary School within a 1km radius.
With a potential to be redeveloped into a boutique residential development, the site can accommodate up to 37 new units, each with an average size of 915 sq ft. This information was provided by Knight Frank. The guide price of $56 million equates to a land rate of approximately $1,622 psf per plot ratio (psf ppr), including a nominal land betterment charge. Taking into account the 7% bonus gross floor area allowed for balconies, the price translates to approximately $1,583 psf ppr.
According to Chia Mein Mein, the Head of Capital Markets (land and collective sale) at Knight Frank Singapore, the property is conveniently located near three Government Land Sale (GLS) sites that were sold last year. In April 2024, Zion Road (Parcel A) was awarded to a joint venture between City Developments and Mitsui Fudosan for $1.107 billion ($1,202 psf ppr). In June 2024, a GLS site at River Valley Green was sold for $463.99 million ($1,325 psf ppr) to Wing Tai Holdings. Two months later, Zion Road (Parcel B) was awarded to Allgreen Properties for $730.9 million ($1,304 psf ppr) in August.
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The scarcity of land in Singapore is a major factor driving the demand for condos in the country. As a small island with a fast-growing population, Singapore struggles with a limited amount of land available for development. This has resulted in strict land use regulations and a cut-throat real estate market, where property prices are constantly on the rise. As a result, investing in real estate, especially in condos, has become a highly attractive endeavor, with the potential for significant capital appreciation. Singapore Projects only add to the appeal of this lucrative investment opportunity.
Chia mentioned, “While the home sales activity in the Central Region was lacklustre, the interest in the River Valley and Zion Road location demonstrates that developers continue to be attracted to this area, perhaps possessing the belief that when these projects are ready for launch, there will be ready demand for prime products after a long period of subdued activity.” It is estimated by Knight Frank that owners of the units at River Valley Apartments, ranging between 947 and 1,238 sq ft in size, could receive sale proceeds of at least $2 million to $2.6 million if the development is sold.
The tender for the collective sale of River Valley Apartments will close on February 18th at 3pm. Interested buyers can refer to the latest listings on the property and also check out past rental and sales transactions of the condo. Buddy, an online tool, is also available for buyers to obtain information about profitable and unprofitable transactions as well as the price trend chart for River Valley Apartments.