Two sites at River Valley Green launched for tender

The site of River Valley Green (Parcel A) (Photo: EdgeProp LandLens)

SINGAPORE (EDGEPROP) - Two residential sites at River Valley Green have been released for sale under the 1H2024 Government Land Sales (GLS) Programme, according to a March 11 press release by URA. Both plots are next to Great World MRT Station on the Thomson-East Coast Line and are close to Great World City mall.

The Parcel A site occupying about 99,972 sq ft is launched for sale under the Confirmed List and could yield up to 380 units. Meanwhile, the adjacent Parcel B site occupies about 126,290 sq ft and is available for application under the Reserve List. River Valley Green (Parcel B) could yield 580 units which includes 220 long-stay serviced apartments.

If the site at River Valley (Parcel A) is developed, the new project could appeal to single professionals and couples with dual income and no kids (dinks), says Marcus Chu, CEO of ERA Singapore. “This is due to its proximity to the CBD, as well as Clarke Quay and Robertson Quay, which offer a rich selection of dining and entertainment options.”

Justin Quek, CEO of OrangeTee & Tie, agrees: “Future residents will enjoy the short walking distance to Great World City. There may also be strong rental demand from tenants given its proximity to the CBD. Homebuyers with young children may find the future project attractive as River Valley Primary School is within 1km of the site.”

The last GLS site that was sold in this vicinity was the site at Irwell Bank Road which has been developed into the 540-unit Irwell Hill Residences by City Developments Limited. The developer won the site in 2020 when it submitted the top bid of $583.9 million, which translates to a land rate of $1,515 psf per plot ratio. Irwell Hill Residences was launched for sale in April 2021 at an average selling price of $2,700 psf.

The only two new launches in the area — Irwell Hill Residences and The Avenir — are fully sold out, says Quek, who adds: “With a limited new supply of homes (in this area), we may see healthy demand for the new units in future developments”.

The two sites at River Valley Green are not the only GLS plots up for tender in this area. Last December, the government released two GLS sites at Zion Road under the 2H2023 GLS programme. Zion Road (Parcel A) was launched under the Confirmed List with its tender closing on April 4, while Zion Road (Parcel B) is open for application under the Reserve List. Zion Road (Parcel A) could yield 1,170 units including 435 long-stay serviced apartments.

Chu says that developers who are keen to explore the serviced apartment component will likely look to the River Valley Green (Parcel B) as the more manageable option since it is half the size of Zion Road (Parcel A). Furthermore, its integration with the existing Great World MRT Station entrance will ensure seamless connectivity for future residents, he says.

Wong Siew Ying, head of research and content at PropNex, expects the River Valley (Parcel A) site will attract between three to four bids, with the top bid coming in at about $483 million to $525 million, reflecting a land rate of $1,380 psf ppr to $1,500 psf ppr. On the other hand, ERA and Lee Sze Teck, senior director of data analytics at Huttons Asia, expect bids for River Valley (Parcel A) could range from $1,500 to $1,600 psf ppr, which equates to a land price of between $525 million and $560 million.

Lee adds that he does not expect more than three bidders and a relatively lower quantum for the site, which will be less risky for developers. Similarly, Chu says that a more conservative land bidding will be expected as the additional buyer’s stamp duty hikes since April last year continue to “pose a hurdle” for new home sales.

The tender for River Valley Green (Parcel A) will close on June 19.

Attractive location and attributes

Wong expects the River Valley Green (Parcel A) site to attract more bidders than the nearby GLS site at Zion Road (Parcel A) due to its desirable location and attributes. “Developers may be more interested in the River Valley site, given the smaller development size and no requirement to offer long-stay serviced apartments, which may put off those without hospitality sector experience,” Wong observes.

Quek agrees that the River Valley Green (Parcel A) site will draw “healthy interest” from bidders, given the good performance of nearby GLS residential developments.

This includes the nearly sold-out 540-unit Irwell Hill Residences. Based on caveats lodged, the condo has sold more than 99% of its units, with an average price of $2,713 psf, says Wong.

As for the River Valley (Parcel B) site, though it is appealing, Wong, Lee and Quek do not think that it will be triggered for tender soon, because of the upcoming supply from the River Valley (Parcel A) and Zion Road (Parcel A) sites.

“More developers may prefer Parcel A, which is purely residential. A portion of the units at Parcel B will be for long-stay serviced apartments, which may make the future development less straightforward,” says Quek.