Projects in the River Valley area in prime District 9 have seen a spike in resale transactions at higher prices. Nicholas Mak, executive director of ZACD Group, attributes it to two factors: the en bloc sale price achieved at Pacific Mansion on River Valley Close and the prices set at Martin Modern, a 450-unit, high-end condominium with twin 30-storey towers.
In March, a joint venture between Singapore property developers GuocoLand and Hong Leong Investment Holdings paid $980 million to purchase Pacific Mansion en bloc. It is the second-biggest en bloc purchase in terms of absolute price so far. The land cost translates into $1,806 psf per plot ratio (ppr).
Pacific Mansion is located just one street away from Martin Modern. GuocoLand had purchased the Martin Modern site in a government land sale (GLS) tender at a bid price of $595 million ($1,239 psf ppr) at end-June 2016. The psf price was surpassed by the $1,733 paid by Frasers Property, which paid $955.4 million for the GLS site on Jiak Kim Street fronting the Singapore River in December 2017.
When Martin Modern was launched by GuocoLand in July last year, the average price of units sold was $2,207 psf. The average selling price has increased 25% to $2,759 psf, according to caveats lodged with URA Realis from April to June. The latest transactions were for two 764 sq ft two-bedders sold in early June: The one on the second level fetched $2.1 million ($2,750 psf) and the one on the fourth floor went for $2.01 million ($2,636 psf).
Located adjacent to Martin Modern is the 302-unit freehold Martin Place Residences by Frasers Property. Resale prices at the project have increased since Martin Modern was launched. Launched in June 2009, Martin Place Residences was fully sold and completed in 2011.
The latest transaction at Martin Place Residences was for a 1,421 sq ft, three-bedroom unit on the eighth floor that changed hands for $2.95 million ($2,076 psf), according to a caveat lodged in June. The previous owner had purchased the unit for $1.926 million ($1,355 psf) in July 2009 when Martin Place Residences was launched.
Across the road from Martin Modern is the 88-unit, freehold Martin No 38 by SC Global Developments. The warehouse loft-inspired River Valley home prices riding high project was launched in July 2008 and completed in 2011. A 1,335 sq ft, three-bedroom unit on the sixth floor that was bought from the developer for $2.8 million ($2,097 psf) 10 years ago, changed hands last month for $3.3 million ($2,472 psf).
When new projects are launched at above market prices, it will have a ripple effect on the resale prices in the rest of the neighbourhood, notes ZACD’s Mak. “As long as the market is buoyant, there will still be good demand for properties in the River Valley area,” he adds.
Next year, the area could see another spike in interest with the launch of the project on Jiak Kim Street. The site fronts the Singapore River and was formerly occupied by Zouk discotheque.
Meanwhile, on St Thomas Walk, just off River Valley Road, the prospective launch of Bukit Sembawang Estates’ freehold 8 St Thomas, a 250-unit high-end condo, later this year, has also spurred interest in existing condos in the neighbourhood.
Nearby is the 176-unit, freehold St Thomas Suites. The development was launched by Frasers Property in 2007, fully sold and completed in 2010. The latest transaction was for a 1,819 sq ft, three-bedroom unit that changed hands for $3.78 million ($2,078 psf) in June. The previous owner had purchased the unit in May 2010 for $3.64 million ($2,000 psf). The first owner had paid $3.11 million ($1,709 psf) for the unit when it was first launched 11 years ago.
Across the road from St Thomas Suites is the 232-unit Espada, a freehold project that was completed in 2010. The latest transaction at the project was for a 355 sq ft, one-bedroom unit on the 22nd level that was sold for $988,000 ($2,781 psf). The unit fetched $941,194 ($2,650 psf) in 2010.