River Valley Apartments, a freehold condominium located on River Valley Road in the highly sought-after District 10, is now open for collective sale through a public tender. The exclusive marketing agent, Knight Frank Singapore, has announced a guide price of $56 million for the development in a press release on Jan 6.
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This four-storey development, which was built in the 1950s, consists of 24 units and is situated on a freehold land area of about 12,408 sq ft zoned for residential use. Its gross plot ratio stands at 2.8. The Great World MRT station on the Thomson-East Coast Line is only around 500m away from the apartment, making it conveniently accessible. Moreover, popular shopping destinations like Great World City and Valley Point Shopping Centre are within walking distance, while top schools like River Valley Primary School and Alexandra Primary School are located within a 1km radius.
Based on the EdgeProp LandLens map, it can be seen that the site has potential for redevelopment into a boutique residential project with 37 new units, with an average size of 915 sq ft each. According to Knight Frank, the guide price of $56 million works out to be a land rate of approximately $1,622 psf per plot ratio (psf ppr), including a nominal land betterment charge. If the 7% bonus gross floor area allotted for balconies is taken into consideration, the price translates to approximately $1,583 psf ppr, making it an attractive investment opportunity.
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Mein Mein Chia, the head of capital markets (land and collective sale) at Knight Frank Singapore, highlights that this site is in close proximity to three Government Land Sale (GLS) sites that were successfully sold last year. In April 2024, the Zion Road (Parcel A) site was awarded to a joint venture between City Developments and Mitsui Fudosan for $1.107 billion ($1,202 psf ppr). In June, 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 also notes that while the sales activity for homes in the Central Region was lacklustre, the interest in the River Valley and Zion Road location remains strong, indicating that there is still demand for prime properties in the area. This could be due to developers believing that when their projects are ready for launch, there will be a ready market for high-end products after a long period of subdued activity.
According to Knight Frank’s estimates, owners of the units in River Valley Apartments, which range from 947 to 1,238 sq ft in size, stand to gain minimum proceeds of about $2 million to $2.6 million if the development is successfully 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 the EdgeProp Buddy app. The app also provides information on the most profitable and unprofitable transactions in the area, rental and sales trends, and more.