Is it a Good Deal?: A 2-bedder in this 999-year D10 condo sold for a record high $2,480 psf
By Elizabeth Choong
/ EdgeProp Singapore |
RV Residences is located along River Valley Road and within District 10. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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SINGAPORE (EDGEPROP) – Last month, a two-bedroom unit in RV Residences sold for a record high of $2,480 psf, resulting in a profit of almost $346,000 for the seller. The seller had bought the 678-sq ft unit in August 2017 for $1,970 psf. Our analytics tool, 'Is it a Good Deal?', was used to examine whether the sale transaction constituted a good deal for the buyer.
Introducing RV Residences
RV Residences features 248 units and obtained its temporary occupation permit (TOP) in 2015. This 999-year leasehold condo is located along River Valley Road in District 10. Amenities within walking distance include Great World MRT Station, Great World City, Valley Point Shopping Centre, and Zion Riverside Food Centre. RV Residences is also located within a 1km radius of Alexandra Primary School, River Valley Primary School, and Gan Eng Seng School.
Source: EdgeProp LandLens (as at 12 April 2024)
Results from ‘Is it a Good Deal’
According to our 'Is it a Good Deal?' analytics tool, the long remaining tenure and proximity to amenities make the transacted price of $1.682 million ($2,480 psf) a good deal for the buyer. However, the transacted price is 9.3% above the average price for the development, which makes it less of a bargain for the buyer. Furthermore, the transacted price is higher than the average prices for nearby condos. The saving grace is that the transacted price is 0.4% below the average price for condos in the same district.
Source: EdgeProp Is it a Good Deal (as at 12 April 2024)
Average price for RV Residences is below counterparts in District 10
In 1Q2024, the average price for RV Residences ($2,360 psf) has fallen below that for condo units in District 10 ($2,492 psf) that measure less than 750 sq ft. There were no sales transactions for RV Residences in the previous quarter. In 3Q2023, the average price for RV Residences ($2,231 psf) was $145 psf higher than that of its counterparts in the same district ($2,086 psf).
Source: EdgeProp Is it a Good Deal (as at 12 April 2024)
Since 1Q2020, the average price for RV Residences has risen by 14.2%, which represents significantly weaker growth compared to the 48% surge observed for similarly-sized units in the same district. The slower price growth for RV Residences could be attributed to its location in the less desirable River Valley neighbourhood, compared to other condos in District 10 that are located in the more desirable neighbourhood of Bukit Timah.
More expensive than majority of its neighbours
Among neighbouring condos, RV Residences has the second-highest average price of $2,270 psf based on the 13 transactions that took place in the past 12 months. Nathan Suites is the only nearby condo with a higher average price of $2,407 psf, based on the two transactions that took place in the past 12 months. The higher average price for the 65-unit condo could be attributed to its freehold tenure and the limited number of units.
The nearest neighbours of RV Residences are all freehold developments, with Zenith being the sole exception. Like RV Residences, Zenith has a tenure of 999 years. However, Zenith is four years older, having obtained TOP in 2011. Based on the five transactions that took place in the past 12 months, Zenith has an average price of $2,175 psf, which is $95 psf lower than RV Residences. Zenith is a boutique development with 85 units.
Source: EdgeProp Is it a Good Deal (as at 12 April 2024)
A closer examination of the aforementioned condos indicates that the average price for RV Residences dipped below the average price for Nathan Suites in 2019 and has since remained at a lower level. From 2015 to this year, the average price for RV Residences rose by 12.8%, a weaker growth compared to the average price gain of 26.9% for Nathan Suites.
Meanwhile, the average price for Zenith has consistently trended below the average prices of the other two developments. At the time of writing, no sales transactions were recorded for Zenith this year, but the average price for the development was $2,103 psf last year. From 2015 to last year, the average price for RV Residences increased by 6.3%, which is weaker growth compared to the 15.9% gain recorded for Zenith.
Source: EdgeProp Market Trends (as at 12 April 2024)
Is it really a Good Deal?
The transaction is a good deal for the seller, generating almost $346,000 in profit. However, the buyer may have overpaid because the transacted price of $2,480 psf is higher than the average price for the development. Furthermore, RV Residences commands a higher average price compared to its closest neighbours, despite having a 999-year leasehold tenure versus its freehold neighbours.
However, the transacted price is lower than the average price of $2,492 psf for condo units of similar size and located in the same district. Therefore, the buyer might consider it a good deal if the intention is to live in the prime district at an affordable level. However, the weak price growth for RV Residences could indicate that the buyer has not secured a good deal if they are investors seeking capital appreciation.
To learn more about this transaction, and whether it is a good deal, click here.
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