by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on tender launch at River Valley Green (Parcel A and B)

Government Land Sales

The Urban Redevelopment Authority has launched the tenders for two sites at River Valley Green under the 1H2024 Government Land Sales (GLS) programme, Parcel A under the Confirmed List and Parcel B under the Reserve List. Parcel A can yield around 380 units, while Parcel B can yield around 580 units and 500 sqm of commercial space, of which 220 units will be allocated to long-stay Serviced Apartments (SA2).

               Both sites are well located, with close access to Great World MRT on the Thomson-East Coast Line (TEL). Future residents here will also enjoy the short walking distance to Great World City, which provides retail and dining amenities. There may also be strong rental demand from tenants given the close 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.

There may be healthy interest in Parcel A as it is a mid-sized project with a moderate number of units. The upcoming site will solely consist of residential units, which may be more desirable for some buyers as compared to the larger development at Zion Road (Parcel A), which will include a number of long-stay serviced apartments as part of its development mix. Moreover, existing new projects in the vicinity, such as Irwell Hill Residences and The Avenir, are fully sold out. The last time a GLS land parcel was sold in D9 was also the plot for Irwell Hill Residences, which was awarded in January 2020. With a limited new supply of homes, we may see healthy demand for the future development.

Parcel B may not be triggered for sale soon as 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. There is also another purely-residential reserve site launched earlier at Zion Road (Parcel B) that is available for application as well.

               Given that this is a prime parcel in the CCR, developers will be mindful of the higher-for-longer interest rates, macroeconomic uncertainty, and the ABSD increase for foreign buyers.  We anticipate between 3 and 5 bidders for Parcel A, with the highest bid price at S$1,450 to S$1,550 psf. 

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