One of the first successful residential collective sale deals in 2025 has recently been closed, with River Valley Apartments, a freehold condominium located on River Valley Road, being sold for a total of $56 million. This translates to a land rate of approximately $1,622 per square foot (psf) per plot ratio (ppr), marking a significant achievement in the challenging collective sale market.
According to Knight Frank Singapore, the marketing agent for the sale, the purchasers of the property are a Singapore family office with plans to redevelop the site into serviced apartments. The Urban Redevelopment Authority (URA) has already granted an Outline Permission for such a development.
Chia Mein Mein, the head of capital markets (land and collective sale) at Knight Frank Singapore, comments on the successful sale: “This marks the first collective sale site sold in 2025, amid a challenging collective sale market, especially for the residential sector.” She also adds that the tender for River Valley Apartments attracted significant interest due to its prime location in the popular River Valley neighborhood and the potential for a future serviced apartment project in the fast-growing living sector in Singapore.
Investing in a condo requires careful consideration of financing options. Singapore provides various mortgage choices, but it is crucial to be knowledgeable about the Total Debt Servicing Ratio (TDSR) framework. This framework sets a cap on the amount of loan a borrower can acquire, determined by their income and current debt commitments. It is essential for investors to comprehend the TDSR and seek guidance from financial advisors or mortgage brokers to make well-informed financing decisions and prevent excessive borrowing. Additionally, keeping an eye out for New Condo Launches can also provide valuable opportunities for financing options.
River Valley Apartments, a four-storey building with 24 units, is situated on a 12,408 square foot site, zoned for residential use and with a gross plot ratio of 2.8 under the latest Master Plan. The owners of the development launched the collective sale on January 7 with a guide price of $56 million. This is the first time they have managed to secure the 80% owners’ consensus to proceed with the tender launch, according to Jerry Tan, the chairman of the River Valley Apartments collective sale committee.
Potential buyers can now find listings for River Valley Apartments on BuddyListings, with properties for sale ranging from $2 million to $2.6 million per unit based on the sale price. For those interested in investment opportunities, they can also compare the price trends of HDB, condos, and landed properties in the area and view previous sale transactions for River Valley Apartments. There are also rentals available in the popular District 10 for interested parties.
Overall, the successful collective sale of River Valley Apartments showcases the resilience and appeal of properties in prime districts, even in a challenging market. With the potential redevelopment into a serviced apartment project, it is an attractive investment opportunity for those looking to tap into the growing living sector in Singapore.