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As Singapore’s population continues to grow, the demand for condos has reached an all-time high. This is largely due to the limited availability of land on this small island nation. With strict land use policies and a competitive real estate market, property prices are continuously on the rise. As a result, investing in real estate, especially in condos, has become a highly profitable venture with the potential for significant capital appreciation. New condo launches have become an attractive option for buyers looking to make a sound investment in Singapore’s flourishing real estate market.
River Valley Apartments, a freehold condominium situated in the prestigious District 10, has recently been put up for a collective sale through public tender. According to Knight Frank Singapore, the exclusive marketing agent, the development has a price tag of $56 million.
Built in the 1950s, River Valley Apartments is a four-storey residential complex comprising of 24 units. The property sits on a land area of approximately 12,408 square feet with a residential zoning and a gross plot ratio of 2.8. It is conveniently located just 500m away from the Great World MRT Station, making it easily accessible for residents. Additionally, popular shopping destinations like Great World City and Valley Point Shopping Centre are within walking distance. Families with young children will also appreciate the proximity to River Valley Primary School and Alexandra Primary School, both of which are within a 1km radius.
According to the Knight Frank Singapore, the site has the potential to be redeveloped into a boutique residential development with 37 new units, each with an average size of 915 square feet. They also add that taking into account the 7% bonus gross floor area allowed for balconies, the price of $56 million translates to a land rate of approximately $1,622 per square foot per plot ratio (psf ppr).
Chia Mein Mein, the head of capital markets (land and collective sale) at Knight Frank Singapore, points out 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 successfully awarded to a joint venture between City Developments and Mitsui Fudosan for a whopping $1.107 billion ($1,202 psf ppr). Only two months later, a GLS site at River Valley Green was sold for $463.99 million ($1,325 psf ppr) to Wing Tai Holdings. Lastly, in August 2024, Allgreen Properties successfully secured Zion Road (Parcel B) for $730.9 million ($1,304 psf ppr).
Mein Mein also noted that despite the lackluster home sales activity in the Central Region, developers are still showing interest in the River Valley and Zion Road location. This could be due to the belief that there will be high demand for prime properties once these projects are completed, after a long period of subdued activity.
When it comes to investing in a condo, securing financing is a crucial factor to consider. In Singapore, there are various mortgage choices available, but it is vital to have knowledge about the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take, based on their income and current debt obligations. To navigate through this framework and make informed decisions, investors should seek assistance from financial advisors or mortgage brokers. This will prevent them from over-leveraging and allow them to explore potential Singapore projects.
According to Knight Frank Singapore’s estimate, owners of the units at River Valley Apartments, which range between 947 and 1,238 square feet in size, stand a chance to receive minimum sale proceeds of around $2 million to $2.6 million if the development is successfully sold. The latest sales transactions at River Valley Apartments show that the market is currently performing well.
The collective sale tender for River Valley Apartments will close on Feb 18, 3pm. Interested parties can check out the latest listings for River Valley Apartments properties on EdgeProp Buddy and inquire about past condo rental and sale transactions in District 10. The platform also provides information on profitable and unprofitable transactions, as well as a price trend chart for River Valley Apartments.