A 40-unit freehold walk-up apartment at River Valley Road has been sold for S$70.5 million, resulting in a total of 32 transactions worth S$1.73 billion on the collective sales market so far this year.
Credo Real Estate, which brokered the deal, said the apartment block at 402 to 414 River Valley Road has been sold to Alliance Land Ltd for S$1,139 psf ppr (around S$70.5 million).
The property has a total land area of 22,107 sq ft and a total gross floor area (GFA) of 68,089 sq ft, including the 10 percent GFA for balcony space. Under the 2008 Master Plan, the site is zoned for residential development, with a plot ratio of 2.8.
Credo said the existing development, which was built in the 1960s, was one of the country’s first generation of flats in the post-colonial era.
Considering the high development baseline, Credo said that a proposed new development with a gross plot ratio of 3.08 (including balconies) will have no development charge (DC).
Each of the owners will have gross sale proceeds of between S$1.75 million and S$1.77 million.
Yong Choon Fah, Executive Director at Credo Real Estate, said the site is “located within close proximity to Great World City and the Orchard Road shopping belt. It is suitable for a boutique development with small apartment units”.
According to The Business Times, the collective sales market is nowhere near its 2007 peak, when 87 sites worth a total S$11.4 billion were sold.
The successful deals over the past 18 months have been “relatively small, with low absolute values and the buyers are mainly small to medium- sized developers who are unable to bid for the larger government residential sites,” said Karamjit Singh, Managing Director of Credo Real Estate.
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