When it comes to investing in condominiums in Singapore, one of the key factors to consider is the government’s property cooling measures. In an effort to maintain a sustainable real estate market, the Singaporean government has implemented a variety of measures to discourage speculative buying. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may impact the short-term profitability of condo investments, they ultimately contribute to a more stable market for the long term. This creates a safer investment environment for those interested in Singapore Projects in the country.
River Valley Apartments, a freehold condominium located in the highly sought-after District 10, has recently been put up for sale through a collective sale tender. The exclusive marketing agent, Knight Frank Singapore, announced on January 6 that the development is on the market for $56 million.
Built in the 1950s, River Valley Apartments is a four-storey development comprising of 24 units. It sits on a freehold land measuring approximately 12,408 square feet, zoned for residential use with a gross plot ratio of 2.8. Its prime location is within 500 meters of the upcoming Great World MRT Station on the Thomson-East Coast Line. Residents can also enjoy the convenience of being within walking distance to Great World City and Valley Point Shopping Centre. Families with young children will also be pleased to know that the development is located within a 1-kilometer radius of reputable schools such as River Valley Primary School and Alexandra Primary School.
According to EdgeProp LandLens, the site has the potential to be redeveloped into a boutique residential development with 37 new units, with an average size of 915 square feet. Knight Frank further adds that the guide 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. With an additional 7% gross floor area allowed for balconies, the price will be approximately $1,583 psf ppr.
Chia Mein Mein, the Head of Capital Markets (land and collective sale) at Knight Frank Singapore, notes that the site is in close proximity to three Government Land Sales (GLS) sites that were sold last year. These include the Zion Road (Parcel A) site that was awarded to a joint venture between City Developments and Mitsui Fudosan for $1.107 billion ($1,202 psf ppr) in April 2024. 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 further comments, “Despite the lackluster home sales activity in the Central Region, the interest in the River Valley and Zion Road location proves that developers are still drawn to this area. This could indicate their belief that there will be ready demand for prime products once these projects are launched, after a long period of subdued activity.”
If the development is successfully sold, Knight Frank estimates that owners of the units at River Valley Apartments, which range between 947 and 1,238 square feet, stand to receive a minimum sale proceeds of around $2 million to $2.6 million.
The collective sale tender for River Valley Apartments will close on February 18 at 3pm. Interested parties can view the latest listings for River Valley Apartments properties, enquire about the past rental transactions, as well as check out the past sale transactions within District 10. The price trend chart for River Valley Apartments is also available for your perusal.