URA Unveils Two Prime Residential Sites in RIver Valley, Near Great World City, Projected to Yield up to 960 units

Two Prime Residential Sites in River Valley

I’m excited to share news about the latest residential developments near Great World City, courtesy release from the Urban Redevelopment Authority’s (URA) Government Land Sales (GLS) programme. 

Two prime residential sites in River Valley Green have been earmarked for tender, one of which incorporates a serviced apartment component.

River Valley Green (Parcel A) – Confirmed Site

The first land plot part of the list of confirmed sites, offers ample space for approximately 380 private housing units across a 9,291.10 square meter area, with a maximum gross floor area (GFA) of 32,519 square meters.

River Valley Green (Parcel B) – Reserve Site

On the other hand, Parcel B, listed under the Reserve list, awaits a suitable offer from potential developers, with satisfactory proposals meeting the government stipulations and market interest thresholds.

 

This larger plot spans a land area of 11,737 square meters and has the potential to accommodate approximately 580 units, including 220 long -stay serviced apartments. Additionally, it features a 500 square meter commercial component at ground level.

Source: URA Master Plan

Next to Great World City Location

What makes these sites particularly attractive is their strategic location bordering the prestigious River Valley residential enclave and proximate to Orchard Road. 

Furthermore, with the convenience of nearby Great World MRT station and adjacency to the comprehensive amenities of Great World City, including its mixed-use facilities, demand is anticipated to be strong and robust.

Market analysts foresee significant interest in Parcel A due to its manageable size and premium positioning, with estimated forecast of at least four or five competitive bids for this parcel alone.

Expected Demand for the River Valley Sites

Estimate Bids for the Sites

Bids for these sites estimated could fall within the range of S$1,380 to S$1,600 per square foot per plot ratio (psf ppr), translating to a total estimated value between S$483 million and S$560 million. That is a hefty sum, but it’s indicative of the cautious approach developers are taking after recent land tender exercises.

To put things into perspective, let’s take a look at a similar transaction earlier this year in 2024. A prime land parcel in Orchard Boulevard fetched S$428.3 million, or S$1,616.75 psf ppr. While substantial, it’s worth noting that this figure marked a 30% decrease compared to a previous tender in the same district. Back in 2018 a plot in Cuscaden Road commanded a staggering S$2,377 psf ppr.

The last significant sale in the River Valley area was at Irwell Bank Road, which has since blossomed into Irwell Hill Residences by City Developments Ltd (CDL). CDL secured the site for S$583.9 million, or S$1,515 psf ppr, in January 2020. Fast forward to today, and the development is nearly sold out, with units fetching an average price of S$2,713 psf.

Conclusion & Opinions

Now let’s talk about what’s on the horizon. Another GLS plot nearby in Zion Road is up for grabs, with a tender closing next month, April 2024. This parcel is slated to accommodate 1,170 units, including 435 long-stay serviced apartments. It’s an intriguing prospect, but I believe developers may favor the River Valley site (Parcel A) due to its smaller scale and lack of serviced apartment requirements.

 

On top of that, developers might not see immediate action towards Parcel B but learn more towards Parcel A, which focuses solely on residential units. The inclusion of long-stay serviced apartments could certainly complicate matters for future developments. 

What do you think? Contact me and let me know your thoughts.

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