Archive for category: Misc

, Orchard Road, Singapore River and the Central Region, on EdgeProp.sg

River Valley is a highly sought-after residential neighbourhood due to its prime location in Singapore’s Central Region. Situated close to the Orchard area and the CBD, River Valley is known as an upscale residential enclave catering to well-heeled households and expatriates. Horizon Towers, a 99-year leasehold condo located on Leonie Hill Road in prime District 9, was recently relaunched for collective sale with an unchanged reserve price of $1.1 billion – an indication of River Valley’s desirability.

Census data indicates that nearly half of River Valley’s households earn a monthly household income of at least $20,000 – more than double the median monthly household income of $9,189 for employed Singaporeans. Residents aged between 40 and 49 make up the largest group, usually in their prime working and earning years.

Whereas many condos in River Valley date back to the 1980s and 1990s, house prices in the area remain relatively high. According to EdgeProp Singapore’s Market Trends tool, prices transacted year-to-date for condo units in River Valley stand at $2,789 psf; higher than the average price for the Central Region ($2,503 psf) as well as the whole of Singapore ($2,019 psf). However, price growth in the area is slower than elsewhere, possibly due to buyers being more price-sensitive.

The same pattern can be seen for rental rates, with average monthly rental rates in River Valley standing at $5.49 psf per month – higher than the figures for the Central Region and the whole of Singapore.

Renters are drawn to River Valley, with census data showing 33% of the area’s population being tenants – higher than the national average of 12%. This is largely thanks to the opening of three new MRT stations on the Thomson-East Coast Line (TEL) within the River Valley planning area; namely Orchard Boulevard, Orchard, and Great World. The stations enhance connectivity within the area and provide direct access to the East Coast when all stages of the TEL are operational by 2025.

Recent new launches within River Valley have seen good take-up rates. Irwell Hill Residences, a 99-year leasehold development on Irwell Bank Road by City Developments, was launched in April 2021 and has seen 94% of units sold at an average price of $2,703 psf. Meanwhile, The Avenir, a 376-unit freehold project by Hong Leong Holdings, GuocoLand and Hong Realty on River Valley Close, was launched in January 2020. It currently has a take-up of 91% at an average price of $3,206 psf.

In addition, en bloc attempts have also seen a revival. Horizon Towers, with its unchanged reserve price of $1.1 billion, is relaunching its collective sale tender, as well as Orchard Bel Air, a 99-year leasehold condo along Orchard Boulevard with an unchanged price tag of $587.5 million (or an estimated $2,551 psf ppr). Bids for both projects close in March this year.

EdgeProp Singapore’s property research analyst Elizabeth Choong presented key developments impacting River Valley, as well as market insights, at a Master Plan Masterclass webinar on Feb 25. According to the survey by EdgeProp Singapore, people are willing to pay at least 10% more for a home near an MRT station or bus interchange. That The Myst bodes well for the River Valley, which enjoys enhanced connectivity and higher rental and property prices.