A milestone collective sale transaction has taken place in 2025, with River Valley Apartments, a freehold condominium located on River Valley Road, being successfully sold for $56 million. This translates to a land rate of $1,622 per square foot per plot ratio (psf ppr). The sale marks the first successful residential collective sale deal to close in 2025.
According to a press release from Knight Frank Singapore, the marketing agent for the transaction, the property was purchased by a Singapore family office with plans to redevelop the site into serviced apartments. The Urban Redevelopment Authority (URA) has granted an Outline Permission for the development of serviced apartments on the site.
Chia Mein Mein, head of capital markets (land and collective sale) at Knight Frank Singapore, says, “This marks the first collective sale site sold in 2025, amid a challenging collective sale market, especially for the residential sector.” She adds that the tender for River Valley Apartments attracted keen interest due to its excellent locational attributes within the popular River Valley neighbourhood. The redevelopment of the site into a future serviced apartment project is also well-positioned to cater to the growing demand for such accommodation in Singapore.
River Valley Apartments consists 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 sale of the development was initiated by the collective sale committee on Jan 7 with a guide price of $56 million. The owners of River Valley Apartments will stand to receive minimum proceeds of about $2 million to $2.6 million each based on the sale price.
When contemplating an investment in a Singapore condo, it is crucial to evaluate the potential rental yield. This refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, condo rental yields can vary significantly based 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. It is important to conduct thorough market research and consult with real estate agents, such as those at Singapore Condo, to gain valuable insights into the rental potential of a specific condo.
“We had attempted to initiate the collective sale exercise in the past, and this is the first time we have secured the 80% owners’ consensus to proceed with the tender launch,” says Jerry Tan, chairman of the River Valley Apartments collective sale committee. He adds that the property’s appeal lies in its “excellent locational attributes” and its potential for redevelopment in the highly sought-after River Valley neighbourhood.
Overall, this transaction is a positive indication of the strength and resilience of Singapore’s property market, despite the challenging collective sale market. With the successful sale of River Valley Apartments, it is hoped that more prime district properties will follow suit and achieve successful collective sales in the future.