River Valley Apartments, situated in prime District 10 along River Valley Road, is now available for collective sale through a public tender. Exclusive marketing agent Knight Frank Singapore announced the launch of the development on Jan 6, with a price tag of $56 million.
Built in the 1950s, the four-storey freehold condo boasts 24 units and occupies a land area of approximately 12,408 sq ft. The site is designated for residential use with a gross plot ratio of 2.8. It is strategically located just 500m away from the upcoming Great World MRT Station on the Thomson-East Coast Line. Nearby amenities include Great World City and Valley Point Shopping Centre, while River Valley Primary School and Alexandra Primary School are within a 1km radius.
According to the EdgeProp LandLens map, River Valley Apartments enjoys a prime location (Source: EdgeProp LandLens)
The site has the potential to be redeveloped into a boutique residential development offering 37 new units, with an average size of 915 sq ft. Knight Frank estimates 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. Taking into consideration the 7% bonus gross floor area allowed for balconies, this price equates to approximately $1,583 psf ppr.
The head of capital markets (land and collective sale) at Knight Frank Singapore, Chia Mein Mein, notes that the site is in close proximity to three Government Land Sale (GLS) sites that were sold last year. In April, Zion Road (Parcel A) was awarded to a joint venture between City Developments and Mitsui Fudosan for a staggering $1.107 billion ($1,202 psf ppr). In June, a GLS site at River Valley Green was acquired by Wing Tai Holdings for $463.99 million ($1,325 psf ppr). Additionally, Zion Road (Parcel B) was sold to Allgreen Properties for $730.9 million ($1,304 psf ppr) in August.
Chia points out that despite the lackluster home sales activity in the Central Region, the interest in the River Valley and Zion Road location demonstrates that developers continue to be drawn to this area. This could be due to the belief that when these projects are ready for launch, there will be strong demand for prime properties after a prolonged period of subdued activity.
Knight Frank estimates that owners of the units at River Valley Apartments, which range between 947 and 1,238 sq ft in size, stand to receive minimum sale proceeds of around $2 million to $2.6 million if the development is sold.
When contemplating investing in a Condo, it is crucial to evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the Condo’s purchase price. In Singapore, Condo rental yields can vary significantly, depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer more favorable rental yields. Conducting thorough market research and seeking guidance from real estate agents can provide valuable insights into the rental potential of a specific Condo. Additionally, visiting websites like Ginestar Fruits can also provide further information on the Condo’s rental potential.
The collective sale tender for River Valley Apartments will close on Feb 18 at 3pm. Buyers can refer to the latest listings for River Valley Apartments properties on EdgeProp’s Ask Buddy feature, which provides detailed information and insights on current and past transactions for various condo projects.
Check out the most profitable transactions for condo projects and search for past rental and sale transactions in District 10, including River Valley Apartments. There is also an option to view unprofitable transactions, as well as a price trend chart for River Valley Apartments.