GuocoLand tops five bidders for River Valley Green Parcel B with $1,420 psf ppr bid
By EdgeProp Singapore
/ EdgeProp Singapore |
River Valley Green (Parcel B) fronts Kim Seng Park and the Singapore River, and has a direct link to the Great World MRT Station (Source: EdgeProp Landlens)
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The River Valley Green (Parcel B) tender closed on Feb 7 with five bids. The top bid of $627.84 million came from GuocoLand. Based on the land area of 126,326 sq ft and maximum gross floor area of 442,142 sq ft, the price translates to a land rate of $1,420 psf per plot ratio (ppr).
The 99-year leasehold site can yield about 475 residential units with commercial space on the first level. "If we are awarded the site, we plan to build a high-end waterfront residential development with two towers," says Dora Chng, GuocoLand residential director.
The District 9 site in Robertson Quay "is the last residential site with direct access to the Singapore River", adds Chng. It is next to Kim Seng Park and fronts the Singapore River. The site also has direct access to the Great World MRT Station on the Thomson-East Coast Line and is just across the road from the popular River Valley Primary School, which should attract families with children of school-going age.
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GuocoLand's bid was 7.9% higher than Sing Holdings' bid of $576.33 million ($1,308 psf ppr).
Developers may also have viewed the River Valley Green (Parcel B) site more favourably due to its long frontage facing the Singapore River compared to the other River Valley Green sites, reckons Tricia Song, CBRE head of research for Singapore and Southeast Asia.
"The slightly keener interest for [River Valley Green (Parcel B)] perhaps reflects a recovery in developers' confidence in the primary home sales market, supported by strong take-up rates at recent new project launches, as well as moderating interest rates towards the end of 2024," says Wong Siew Ying, head of research and content, PropNex.
According to Mark Yip, CEO of Huttons Asia, the bids received were the highest number of bids and tender price for a GLS tender in the Core Central Region (CCR) since Irwell Bank Road, off River Valley Road, in January 2020. The tender attracted seven bids, with City Developments Ltd (CDL) winning the site with a bid of $583.9 million ($1,515 psf ppr).
The site at Irwell Bank Road has since been developed into the 540-unit Irwell Hill Residences, which obtained its Temporary Occupation Permit in November 2024. Based on caveats lodged, the latest transaction at Irwell Hill Residences was for the sub-sale of a 678 sq ft, two-bedroom unit on the 15th floor that changed hands for $1.9 million ($2,802 psf) in January.
River Valley Green (Parcel B) was initially placed on the Reserve List and zoned for 360 homes and 220 long-stay serviced apartments (SA2). However, in October 2024, it was launched for sale along with three other sites under the 2H2024 GLS programme.
GuocoLand's top bid of $1,420 psf ppr for Parcel B is also 7.2% higher than the neighbouring Parcel A.
Wing Tai Holdings won the River Valley Green (Parcel A) tender in June 2024 with a bid of d $464 million ($1,325 psf ppr). The new project on the site is expected to debut sometime in 2Q2025 as River Green, which is expected to have more than 400 units.
Other recently awarded GLS sites in the vicinity include Zion Road Parcel B (estimated 610 units) site, which drew two bids and was awarded for $730.09 million ($1,304 psf ppr) in August 2024 to Allgreen Properties, and the SA2 (long-stay serviced apartments) hybrid site at Zion Road Parcel A (735 residential units, 435 SA2 units) which drew a lone bid of $1.1 billion ($1,202 psf ppr) from a joint venture between CDL and Mitsui Fudosan, which were awarded the site in April 2024.
Marcus Chu, CEO of ERA Singapore, says that River Valley Green (Parcel B) drew the most bids among the sites. "The previous three sites in the vicinity only had an average of 1.7 bids each," he says.
However, developers in the area will have to contend with heightened competition, with 1,725 residential units and 435 SA2 units expected in the pipeline from the three prior sites, says CBRE’s Song.
Taking the cue from the launch prices at prior sites and new developments, Song reckons the new development at River Valley Green (Parcel B) could be launched at an average price of $3,000 psf.
Mohan Sandrasegeran, SRI head of research & data analytics, anticipates the launch price for the new project to be in the range of $2,800 to $3,000 psf.
"With recent new launches in the area, such as Irwell Hill Residences and The Avenir almost fully sold, we may still see healthy demand when this new project is launched for sale to buyers," says Justin Quek, CEO of OrangeTee & Tie.
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