River Valley Apartments, a freehold condo situated on River Valley Road within the prestigious District 10, has recently been launched for collective sale through public tender. According to a press release dated January 6 by Knight Frank Singapore, the appointed marketing agent, the development is priced at a remarkable $56 million.
Built in the 1950s, this four-storey apartment complex comprises of 24 units and stands on a 12,408 sq ft land area designated for residential use, with a gross plot ratio of 2.8. Its prime location, just 500 metres away from the Great World MRT Station on the Thomson-East Coast Line, makes it an attractive prospect for potential buyers. The popular Great World City and Valley Point Shopping Centre are within walking distance, and the prestigious River Valley Primary School and Alexandra Primary School are located within a 1km radius.
The potential for redevelopment of this site is also highly promising, with the possibility of a boutique residential development consisting of 37 new units with an average size of 915 sq ft, as stated by Knight Frank.
The indicative price of $56 million translates to a land rate of approximately $1,622 per square foot 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 can be approximated to $1,583 psf ppr.
Chia Mein Mein, the head of capital markets (land and collective sale) at Knight Frank Singapore, highlights that the site is in close proximity to 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 a whopping $1.107 billion ($1,202 psf ppr).
Soon after, in June 2024, a GLS site at River Valley Green was secured by Wing Tai Holdings at a price of $463.99 million ($1,325 psf ppr). In August that same year, Allgreen Properties successfully acquired Zion Road (Parcel B) at $730.9 million ($1,304 psf ppr).
Singapore’s and cosmopolitan atmosphere is defined by its towering skyscrapers and cutting-edge infrastructure, making it a bustling metropolis. The city offers a fusion of luxury and functionality with its strategically located condos, appealing to both locals and foreigners. These modern residences come equipped with a variety of amenities such as swimming pools, fitness centers, and 24/7 security, enhancing the overall standard of living and attracting potential tenants and buyers. Savvy investors are drawn to these impressive offerings as they guarantee attractive rental returns and significant appreciation of property values in the long run. Additionally, with the option to purchase a Condo in prime locations, the potential for growth and profit is undeniable.
Chia adds, “Despite the lukewarm demand for homes in the Central Region, the interest shown in the River Valley and Zion Road area demonstrates the attraction of this location to developers. It could be assumed that these developers have faith in the market’s potential for prime properties, especially after a prolonged period of subdued activity.”
According to Knight Frank’s estimates, owners of the units at River Valley Apartments, which range between 947 and 1,238 sq ft, stand to receive a minimum of $2 million to $2.6 million in sale proceeds if the development is sold.
The collective sale tender for River Valley Apartments will close on February 18 at 3pm. Interested parties can check out the latest listings for River Valley Apartments properties on EdgeProp Buddy, where they can also find past rental and sale transactions, as well as the profitability of these transactions. The site also features a price trend chart for River Valley Apartments.