River Valley Apartments, a freehold condominium situated in the prestigious District 10, has been recently launched for collective sale through a public tender. The development, which has exclusive marketing agent Knight Frank Singapore, is available at a price of $56 million, according to a press release issued on January 6th.
Built in the 1950s, the four-storey apartment comprises of 24 units and is located on River Valley Road. The property occupies a freehold land area of approximately 12,408 square feet and is zoned for residential use with a gross plot ratio of 2.8. Additionally, the Great World MRT Station on the upcoming Thomson-East Coast Line is just 500 meters away, making it an attractive location for potential buyers. The development is also within walking distance to shopping destinations such as Great World City and Valley Point Shopping Centre, while River Valley Primary School and Alexandra Primary School are just a stone’s throw away.
(Source: EdgeProp LandLens)
The site offers a potential for redevelopment into a boutique residential development with 37 new units, with an average size of 915 square feet, according to Knight Frank. 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. Taking into consideration the 7% bonus gross floor area allowed for balconies, the price translates to approximately $1,583 psf ppr.
In addition, Chia Mein Mein, head of capital markets (land and collective sale) at Knight Frank Singapore, states that the site is in close proximity to three Government Land Sale (GLS) sites that were sold in the previous year. In April 2024, the Zion Road (Parcel A) site was awarded to a joint venture between City Developments and Mitsui Fudosan for a price of $1.107 billion ($1,202 psf ppr).
In June 2024, Wing Tai Holdings successfully acquired a GLS site at River Valley Green for $463.99 million ($1,325 psf ppr). Two months later, Allgreen Properties secured the Zion Road (Parcel B) site for $730.9 million ($1,304 psf ppr) in August.
Chia further adds, “Despite the sluggish home sales activity in the Central Region, the interest in the River Valley and Zion Road location indicates that developers remain drawn to this area, with the belief that there will be demand for prime products after a long period of subdued activity.”
When it comes to investing in a condo, financing is a crucial factor to consider. Fortunately, Singapore has a variety of mortgage options available. However, it’s important to be familiar with the Total Debt Servicing Ratio (TDSR) framework. This framework sets limits on the amount of loan a borrower can obtain based on their income and current debt obligations. To ensure wise financing choices and to avoid over-leveraging, it is highly recommended to understand the TDSR and seek guidance from financial advisors or mortgage brokers. Furthermore, staying updated with New Condo Launches can also help investors make informed decisions about their financing options.
Knight Frank predicts that the owners of units at River Valley Apartments, which range from 947 to 1,238 square feet, stand to receive minimum sale proceeds of around $2 million to $2.6 million if the development is sold.
(Source: EdgeProp Buddy)
The collective sale tender for River Valley Apartments will close on February 18 at 3pm. Interested parties can check out the latest listings for properties in River Valley Apartments on the Ask Buddy portal. Additionally, they can also access past rental and sale transactions, as well as the price trend chart for River Valley Apartments.