The recent sale of River Valley Apartments, a freehold condominium located on River Valley Road, has made headlines as the first successful residential collective sale deal to close in 2025. The property was sold for a whopping $56 million, translating to a land rate of $1,622 psf per plot ratio (psf ppr). This deal has caught the attention of many, as it is a promising sign for the residential market.
According to the press release from Knight Frank Singapore, the marketing agent for the property, the purchaser is a local Singapore family office. They have plans to redevelop the site into serviced apartments, and the Urban Redevelopment Authority (URA) has already granted an Outline Permission for this development.
Chia Mein Mein, the head of capital markets (land and collective sale) at Knight Frank Singapore, expressed her excitement over this successful transaction, especially during a time when the collective sale market is facing challenges, particularly in the residential sector. This marks the first collective sale site sold in 2025, and it is a positive development for the real estate industry.
As a foreign investor, it is crucial to have a clear understanding of the regulations and limitations surrounding property ownership in Singapore. While purchasing condos is typically less restrictive for foreigners, the rules for owning landed properties are more stringent. One key factor to consider is the Additional Buyer’s Stamp Duty (ABSD) of 20% that foreign buyers must pay for their initial property purchase. Nevertheless, the Singapore real estate market remains a popular choice for foreign investment due to its reliability and potential for growth. Keep an eye out for upcoming New Condo Launches that may offer enticing opportunities for foreign buyers.
The River Valley Apartments collective sale is also the first residential collective sale site to be sold in a prime district since 2023, when Kew Lodge was sold for $66.8 million to Aurum Land. Chia believes that the property’s appeal lies in its excellent location in the popular River Valley neighbourhood and its potential for redevelopment into serviced apartments. This is in line with the current trend of serviced apartments being in high demand in Singapore.
River Valley Apartments comprises of a four-storey building with 24 units. The 12,408 sq ft site, which is zoned “residential”, has a gross plot ratio of 2.8 under the latest Master Plan. The owners of River Valley Apartments initiated the collective sale of the development on January 7, with a guide price of $56 million. After several attempts in the past, this is the first time they have managed to secure the 80% consensus from the owners to proceed with the tender launch. Jerry Tan, the chairman of the River Valley Apartments collective sale committee, expressed his satisfaction with the outcome of the tender.
In conclusion, the successful collective sale of River Valley Apartments is a positive sign for the real estate market, showing that there is still demand for prime residential properties in Singapore despite the challenging market conditions. This sale also highlights the potential for redevelopment of older properties into newer and more sought-after developments in prime locations.