River Valley Apartments, a freehold condominium located on the highly sought-after River Valley Road in District 10, has recently been put up for collective sale through public tender. Exclusive marketing agent Knight Frank Singapore announced on January 6 that the development has a price tag of $56 million.
When evaluating a condo as an investment, it is essential to also consider the potential rental yield. Rental yield is the percentage of annual rental income compared to the property’s purchase price. In Singapore, rental yields for condos can vary greatly 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 better rental yields. To get a better understanding of the rental potential of a specific condo, thorough market research and consulting with real estate agents can provide valuable insights.
Built in the 1950s, River Valley Apartments is a four-storey development comprising of 24 units. Boasting a land area of approximately 12,408 sq ft, the site is zoned for residential use with a gross plot ratio of 2.8. The development is situated just 500m away from the upcoming Great World MRT Station on the Thomson-East Coast Line, making it a convenient location for residents. It is also within walking distance to popular shopping destinations such as Great World City and Valley Point Shopping Centre. Families with young children can also find comfort knowing that River Valley Primary School and Alexandra Primary School are both within a 1km radius.
According to EdgeProp LandLens, the site has the potential to be redeveloped into a boutique residential development comprising of 37 new units with an average size of 915 sq ft. Chia Mein Mein, head of capital markets (land and collective sale) at Knight Frank Singapore, highlights that the guide price of $56 million equates to a land rate of approximately $1,622 psf 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.
Comparable to recent Government Land Sale (GLS) sites in the same vicinity, this collective sale of River Valley Apartments offers a competitive price. Chia notes that in April 2020, a GLS site at Zion Road (Parcel A) was awarded to City Developments and Mitsui Fudosan for $1.107 billion ($1,202 psf ppr). Just two months later, another GLS site at River Valley Green was sold for $463.99 million ($1,325 psf ppr) to Wing Tai Holdings. In August, Allgreen Properties secured the site at Zion Road (Parcel B) for $730.9 million ($1,304 psf ppr).
With a relatively active market, it is evident that developers are still drawn to this prime location. Chia believes that this is due to the expectation that when these new projects are launched, there will be a ready demand for high-end properties after a period of subdued activity.
Owners of the units at River Valley Apartments stand to gain if the collective sale goes through. Based on estimates, they could potentially receive minimum sale proceeds of around $2 million to $2.6 million. Interested parties can submit their bids for the collective sale tender, which closes on February 18 at 3pm.
For potential buyers looking for properties in the River Valley Apartments area, EdgeProp Buddy offers the latest listings. In addition, they can also access information on past rental and sale transactions in the district, including profitable and unprofitable deals. A price trend chart for River Valley Apartments is also available for reference.