River Valley benefits from the Thomson-East Coast Line, demonstrating robust demand.

Horizon Towers, the leasehold condo located on Leonie Hill Road in District 9, has been put up for collective sale tender again on Feb 16 with the same reserve price of $1.1 billion after an unsuccessful bid in September 2022.

The 211-unit condominium was finished in 1984 and is located on a 1.9 hectare property. The reserve price equates to a land rate of approximately $2,049 per square foot per plot ratio (psf ppr) when considering a lease top-up premium of roughly $277 million.

Horizon Towers is known for its prime location in the River Valley planning area, which falls within the Central Region. It is conveniently near the Orchard area and the CBD, as well as just a short five-minute walk from the Great World MRT Station on the Thomson-East Coast Line (TEL).

According to Elizabeth Choong, River Valley is a highly desirable residential neighbourhood not only because of its prime location but also for various other reasons.

Based on EdgeProp Singapore’s property research, the analyst discussed important developments affecting the area and shared market insights obtained through the use of EdgeProp Singapore’s analytical tools during a webinar on Feb 25.

The River Valley planning area covers approximately 148 hectares and is bordered by the Orchard, Singapore River, Museum, and Tanglin planning areas. Most of the land in River Valley is designated for residential purposes. Therefore, despite its proximity to major business hubs in the city, River Valley remains a peaceful and tranquil neighbourhood.

The majority of housing in the area consists of tall, privately owned condominiums. Data from EdgeProp LandLens shows that there are 12,061 condo units in River Valley spread across 145 projects. Some of these condominiums, such as Horizon Towers, were built in the 1980s and 1990s as part of a government initiative to redevelop the Singapore River area with high-rise buildings.

Nowadays, River Valley is recognized as a high-end neighbourhood that attracts affluent families and expatriates. According to the 2020 census, almost half of the households in River Valley have a monthly household income of $20,000 or more, which is over double the median monthly household income of $9,189 for working Singapore residents.

Furthermore, the biggest demographic in River Valley consists of residents between the ages of 40 and 49. According to Choong, these individuals are typically in their peak earning years, which contributes to the area’s high income levels.

Analyzing River Valley Condos: A Comparative Study of Higher Prices and Rental Rates in Singapore’s Property Market

River Valley condos, due to their excellent location, can fetch higher prices compared to properties in other areas. According to data from EdgeProp Singapore’s Market Trends tool, the average price per square foot for condo units in River Valley this year is $2,789, which is higher than the average price for the Central Region ($2,503) and Singapore as a whole ($2,019).

Even though prices in River Valley are higher, they are increasing at a slower rate compared to other regions. From 2013 onwards, the average transaction prices in River Valley have increased by 32%, while the Central Region has seen a 44% increase and Singapore as a whole has experienced a 46% increase. According to Choong, this suggests that buyers in River Valley are more price-conscious.

The rental rates in River Valley are averaging $5.49 per square foot per month compared to $5.17 in the Central Region and $4.69 islandwide. Choong explains the higher rents in River Valley by its popularity among renters, with 33% of the population being tenants, higher than the national average of 12%.

Revitalizing River Valley: The Impact of New MRT Stations on Enhancing Connectivity and Property Prices

Before the introduction of TEL, River Valley did not have its own MRT station even though it was centrally located. Choong noted that while there were stations nearby such as Orchard and Tiong Bahru, there were none within the River Valley area itself.

The situation shifted when Stage 3 of the TEL was inaugurated last November, which extended the line from Caldecott to Gardens by the Bay. Within this segment, three stations are located in the River Valley planning area: Orchard Boulevard, Orchard, and Great World.

The stations in River Valley will improve the ease of access to the MRT network for residents in the area, thereby increasing connectivity. By 2025, when all stages of the TEL project are complete, residents will also benefit from a direct MRT route to the East Coast.

Choong is confident that the presence of stations will have a positive impact on property prices. According to a survey conducted by EdgeProp Singapore last year, individuals are willing to pay a premium of at least 10% for a property located near an MRT station or bus interchange.

Recent New Launches Trends and Collective Sale Attempts in River Valley and Orchard Areas

Several new developments in River Valley have been successful, indicating ongoing faith in the neighbourhood. Right next to Horizon Towers is Irwell Hill Residences, a 99-year leasehold project on Irwell Bank Road by City Developments. Since its launch in April 2021, the 540-unit condominium has sold 94% of its units at an average price of $2,703 per square foot.

The Avenir, a freehold development with 376 units located on River Valley Close, was launched in January 2020 by Hong Leong Holdings, GuocoLand, and Hong Realty. As of now, 91% of the units have been sold at an average price of $3,206 per square foot.

The latest development in River Valley is Hill House, a 999-year leasehold project led by Macly Group and a consortium. With 72 units in total, the project has sold 15 units since its debut in November 2022, at an average price of $2,977 per square foot.

At the same time, there has been a resurgence in collective sale attempts. Orchard Bel Air, a 99-year leasehold condo located along Orchard Boulevard, has also reinitiated its collective sale tender with the same price of $587.5 million (or around $2,551 per square foot per plot ratio). 

The property is next to the Orchard Boulevard MRT Station, on the border of the River Valley and Orchard planning areas. (Check out potential condos with a collective sale calculator)

The deadline for submitting bids for Horizon Towers and Orchard Bel Air is in March.

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