River Valley Apartments, a prestigious freehold condominium situated in the sought-after District 10, has recently been put up for collective sale through a public tender. According to Knight Frank Singapore, the exclusive marketing agent for the development, the property has a price tag of $56 million.
When it comes to investing in real estate, location is a vital consideration, and this is especially true in Singapore. In this country, the value of condos in central areas or those near essential amenities such as schools, shopping malls, and public transportation hubs tends to appreciate significantly. This is evident in prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD), where property values have consistently shown growth over the years. New Condo Launches are also highly sought after in these areas due to their proximity to good schools and educational institutions, making them an excellent investment choice for families.
The four-storey apartment, built in the 1950s, comprises of 24 units and sits on a land area of approximately 12,408 sq ft that is zoned for residential use with a gross plot ratio of 2.8. It is conveniently located just 500m away from the upcoming Great World MRT Station on the Thomson-East Coast Line. Residents can also enjoy easy access to Great World City and Valley Point Shopping Centre within walking distance. Moreover, the development is surrounded by reputable schools such as River Valley Primary School and Alexandra Primary School, which are both within a 1km radius.
According to the EdgeProp LandLens, the site of River Valley Apartments has the potential to be redeveloped into a boutique residential development with 37 new units, each with an average size of 915 sq ft. The guide price of $56 million translates to a land rate of approximately $1,622 psf per plot ratio (psf ppr) with a nominal land betterment charge. Including the 7% bonus gross floor area allowed for balconies, the price comes up 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 location of the development is in close proximity to three Government Land Sale (GLS) sites that were sold last year. In April 2024, Zion Road (Parcel A) was acquired by 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.
Chia adds that despite the sluggish home sales activity in the Central Region, the interest in the River Valley and Zion Road location has remained strong among developers. This could potentially be due to their belief that there will be high demand for prime properties in this area after a period of subdued activity.
Owners of the units at River Valley Apartments, which range from 947 to 1,238 sq ft, are estimated to receive minimum sale proceeds of $2 million to $2.6 million if the development is sold. The collective sale tender for River Valley Apartments will close on Feb 18 at 3pm. Interested parties can check out the latest listings for River Valley Apartments properties on EdgeProp’s Ask Buddy feature, which includes past sale and rental transactions, as well as a price trend chart.