ANALYSIS: Pockets of opportunity near River Valley
By Elizabeth Choong
/ EdgeProp Singapore |
The St. Thomas Cluster has the highest overall average price among all the clusters of condos near River Valley. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) – River Valley is a popular residential enclave due to its central location and the numerous nearby amenities, including Great World City. River Valley is just a short drive away from the CBD, Orchard Road, and Clarke Quay. Hence, it is not surprising that the condos in the neighbourhood command a price premium.
Since 2012, the average price for condos in the River Valley Planning Area ($2,570 psf) has consistently exceeded the average prices for their counterparts in the Central Region ($2,305 psf) and islandwide ($1,956 psf). However, the price growth for condos in River Valley (28%) was slower than Central Region (41%) and islandwide (61%).
Our analysis reveals that there are several pockets in or near River Valley where condo prices are more affordable. Astute buyers could consider these hidden gems to enjoy the benefits of being near a popular neighbourhood but at a lower price.
Methodology
Condos were grouped together into clusters based on their location. Each cluster has a variety of nine to thirteen developments that are different in terms of tenure, age, and size. The diversity of the condos included in each cluster is to ensure randomness and reduce biases. The average price of each identified condo from 2019 to 2023 was recorded. The average price for each cluster was then calculated based on the average price for each condo in the cluster.
The River Valley Cluster
The River Valley Cluster comprises 13 diverse condos along River Valley Road and straddles districts 9 and 10. The cluster also includes two developments that are still under construction; namely, Irwell Hill Residences and RV Altitude.
The current average price for the River Valley Cluster is $2,230 psf, an increase of 5.1% from last year ($2,122 psf) and a 15.3% growth from 2019 ($1,934 psf). The price growth for the cluster could have been given a boost by the stellar sales performance of Irwell Hill Residences. The development is almost sold out and has a current average price of $2,916 psf, which is the highest in the cluster. The Cosmopolitan has the second-highest average price at $2,489 psf, followed by Rivershire at $2,363 psf.
Nathan and Jervois Clusters hold some hidden gems
The Nathan and Jervois Clusters comprise condos located along smaller roads off River Valley Road. Our analysis indicates that the overall average prices of the condos in these two clusters are lower than the condos in the River Valley Cluster. Furthermore, the price appreciations for the Nathan and Jervois Clusters have kept pace with the River Valley Cluster.
The overall average price for the developments in the Nathan Cluster is $2,006 psf, which is $224 psf lower than the overall average for the River Valley Cluster. The current average price for the Nathan Cluster is also an increase of 4.2% from the average price of $1,925 psf last year and a growth of 13.1% from the average price of $1,774 psf in 2019.
The Nathan Cluster comprises 13 freehold condos in District 10. The majority of the condos are small developments with fewer than 100 units. The largest development is Latitude with 127 units. Latitude ($2,875 psf) also has the highest current average price among the condos in the cluster. Only two other developments in the cluster have more than 100 units, namely Loft @ Nathan (121 units) and The Montana (108 units).
Other than Latitude, only three other developments in the Nathan Cluster have a current average price that is above the cluster average of $2,006 psf. They are The Montana ($2,283 psf), The Horizon ($2,146 psf), and The Mercury ($2,072 psf).
The most affordable developments in this cluster are Sheares Ville ($1,335 psf), Loft @ Nathan ($1,723 psf), and Nathan Residences ($1,764 psf). The significantly lower price could be because Sheares Ville obtained temporary occupation permit (TOP) in 2003. Furthermore, there has been a 3% price decline since 2012 for the condo.
There is a row of shops and restaurants on the ground floor of Loft @ Nathan, which provides convenience to the residents. This could also be the reason for its average price growth of 14% since 2012, a stronger appreciation compared to Nathan Residences (10%). Furthermore, Loft @ Nathan obtained TOP in 2014, one year after Nathan Residences. Astute buyers might want to take a closer look at these two developments.
The Jervois Cluster comprises 13 condos, which are a mixed bag of freehold and 99-year leasehold condos. The cluster also has developments spread across Districts 3 and 10.
The overall current average price for the Jervois Cluster is $2,032 psf, which is $26 psf higher than the Nathan Cluster but $198 psf lower than the River Valley Cluster. The current average price for the Jervois Cluster also grew by 6.1% and 14.5% compared to last year ($1,916 psf) and 2019 ($1,774 psf).
Jervois Prive ($2,995 psf), Jervois Treasures ($2,641 psf), and Petit Jervois ($2,601 psf) have the highest current average prices and are also the newest developments in the cluster. Jervois Prive and Jervois Treasures obtained TOP this year, while Petit Jervois obtained TOP last year.
The Crest (469 units) and Principal Garden (663 units) are the largest developments in the Jervois Cluster. Both 99-year leasehold developments are located beside each other. The Crest obtained TOP in 2017, a year before Principal Garden.
It is noteworthy that the current average price for The Crest ($1,935 psf) is lower than the overall average for the Jervois Cluster, while the current average price for Principal Garden ($2,062 psf) is only $30 psf higher than the overall average for the cluster. This could be explained by the stronger price growth for Principal Garden, which grew by 27% since 2016 compared to a 13% growth for The Crest.
Alexandra Cluster offers condo units for under $2,000 psf
Buyers who are keen to live near River Valley but have a more modest budget can consider the Alexandra Cluster, which comprises 12 condos near Redhill and Queenstown MRT Stations. These developments are more affordable than the condos in the River Valley, Nathan, and Jervois Clusters because the majority of them are 99-year leasehold developments in District 3. They are also located further from Orchard Road and the CBD.
The overall current average price for the Alexandra Cluster is $1,913 psf, an increase of 5.4% compared to last year's average price of $1,818 psf. It is noteworthy that the Alexandra Cluster achieved a stronger price growth of 16.8% since 2019 compared to the River Valley Cluster (15.3%). This could be because there are a number of new condos that are less than 10 years old in the Alexandra Cluster.
Stirling Residences has the highest current average price ($2,269 psf) in the Alexandra Cluster. This could be due to its age because the development only obtained TOP last year. Artra, which obtained TOP in 2020, has the second-highest average price ($2,222 psf). Furthermore, Artra is located next to Redhill MRT Station and has several shops, including a supermarket, on the ground floor. Both condos are 99-year leasehold developments.
In contrast, Queens ($1,530 psf) is the most affordable, followed by Tanglin Regency ($1,664 psf) and The Metropolitan Condominium ($1,686 psf). The current average prices for the three developments are at least $227 psf lower than the overall average for the Alexandra Cluster. The three condos are also within walking distance of Redhill or Queenstown MRT Stations. The main drawback would be their age and leasehold tenure. Tanglin Regency is the oldest, having obtained TOP in 1998, followed by Queens in 2002, and The Metropolitan Condominium in 2009.
Despite their age, the three developments have achieved significant price growth since 2012. Tanglin Regency achieved the strongest price growth of 29%, followed by The Metropolitan Condominium (27%), and Queens (25%).
Those with deeper pockets can consider the St. Thomas and Martin Clusters
Buyers with deeper pockets may wish to consider the St. Thomas and Martin Clusters because the overall average prices for these two clusters are higher than the River Valley Cluster by $304 psf and $221 psf, respectively.
The St. Thomas Cluster has an overall average price of $2,534 psf, an increase of 8.3% compared to $2,340 psf last year and a growth of 10.1% compared to $2,302 psf in 2019. The overall average price for the Martin Cluster is $2,451 psf, which is almost unchanged from $2,452 psf last year but represents an increase of 12.7% from $2,175 psf in 2019.
The higher prices for the St. Thomas and Martin clusters could be because they are located nearer to Orchard Road and Dhoby Ghaut compared to the River Valley Cluster. Furthermore, the 10 condos in the St. Thomas Cluster are freehold and in District 9. Likewise, the nine condos in the Martin Cluster are in District 9, and all of them are freehold developments except for Martin Modern.
Among the condos in the St. Thomas Cluster, New Futura has the highest current average price of $4,327 psf, followed by 8 Saint Thomas ($3,134 psf). It is noteworthy that these two condos are the only developments in the cluster with an average price above $3,000 psf. They are also the newest developments in the cluster. New Futura and 8 Saint Thomas obtained TOP in 2017 and 2018, respectively.
There are only two condos in the St. Thomas Cluster with a current average price below $2,000 psf. They are The Morningside ($1,784 psf) and Luma ($1,963 psf). The comparatively affordable price for The Morningside could be due to its age because the development obtained TOP in 1992. Price growth for Luma has been slow, having inched up only 1% since 2012. The relative affordability of these condos might be an opportunity for savvy buyers to snap up a bargain. However, Luma might be less suitable for owner-occupier families because the development comprises only one or two-bedroom units.
Despite being the only 99-year leasehold condo in the Martin Cluster, Martin Modern has the second-highest current average price of $2,713 psf. This could be because it is the newest development in the cluster, having obtained TOP in 2021. The Avenir is the most expensive, with a current average price of $3,120 psf. The uncompleted development is fully sold.
The most affordable developments in the Martin Cluster are Starlight Suites ($1,957 psf) and Euro-Asia Court ($2,075 psf). Interestingly, both condos are located across the road from The Avenir.
Despite being older than Starlight Suites (TOP in 2014), Euro-Asia Court (TOP in 1994) has achieved a 42% price growth since 2012, while Starlight Suites experienced a price decline of 12% over the same timeframe. The less than ideal performance for Starlight Suites could be attributed to its compact site and unit layout, as well as the numerous competing options nearby.
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