River Valley leverages Thomson-East Coast Line, resilient demand

, Orchard and Tanglin planning areas on EdgeProp.sgRiver Valley remains a coveted residential neighbourhood, offering upscale houses and prime location in the city. Upscale condos in the area, such as Horizon Towers, The Avenir, Hill House, and Irwell Hill Residences, are attracting well-heeled and expatriate households, with about one-third of the population being tenants. River Valley condos can command higher rates than other areas, with prices transacted at about $2,789 psf and rental rates at $5.49 psf pm year-to-date, compared to the median prices in the Central Region and whole of Singapore at $2,503 psf and $4.69 psf pm respectively.

Enhanced connectivity in the area has arrived with the opening of the Thomson-East Coast Line (TEL), with the Great World MRT Station just a five-minute walk away from Horizon Towers, as well as three new MRT stations falling within the River Valley planning area. According to a survey by EdgeProp Singapore, people are willing to pay at least 10% more for a home near an MRT station or bus interchange, boding well for property values in the area.

Despite higher prices and rents, new launches and en bloc attempts such as Horizon Towers and Orchard Bel Air have seen much interest, with both projects launched with an unchanged reserve price of $1.1 billion and $587.5 million respectively.

The upscale residential enclave of River Valley has been performing well, commanding higher prices than other areas. EdgeProp Singapore’s Market Trends tool shows that prices for condo units in the area stand at $2,789 psf, compared to the average price for the Central Region ($2,503 psf) as well as the whole of Singapore ($2,019 psf). Census data for 2020 shows nearly half of the households in River Valley earning a monthly household income of at least $20,000 — more than double the median of $9,189 for employed Singapore residents.

Situated in the River Valley planning area within the Central Region, Horizon Towers — a 211-unit, 99-year leasehold condo on Leonie Hill Road — was recently relaunched for collective sale tender on Feb 16 with an unchanged reserve price of $1.1 billion. Tengah Plantation EC With the reserve price working out to a land rate of about $2,049 psf per plot ratio (psf ppr) after factoring in a lease top-up premium estimated at around $277 million, Horizon Towers stands out for its location, being close to the Orchard area and the CBD.

Data compiled on EdgeProp Singapore’s Market Trends tool also reveals that average condo rental rates in River Valley currently stand at $5.49 psf per month (psf pm) year-to-date, higher than the Central Region and the whole of Singapore at $5.17 psf pm and $4.69 psf pm respectively. Choong attributes the higher rents to River Valley’s popularity among renters, with 33% of the area’s population being tenants, higher than the national average of 12%.

A number of recent launches in River Valley have performed well, signalling continued confidence in the area. Just across Horizon Towers is Irwell Hill Residences, a 99- year leasehold development on Irwell Bank Road by City Developments. Launched in April 2021, the 540-unit condo has seen 94% of units sold at an average price of $2,703 psf.

The most recent launch in River Valley was Hill House, a 999-year leasehold project by a consortium led by Macly Group. Comprising 72 units, the project has seen 15 units sold since its launch in November 2022 at an average price of $2,977 psf.

The Avenir is a 376-unit freehold project by Hong Leong Holdings, GuocoLand and Hong Realty on River Valley Close, launched in January 2020. It currently has a take-up of 91% at an average price of $3,206 psf.

Since 2013, average transacted prices in River Valley have grown 32%, versus 44% for the Central Region and 46% for the whole of Singapore, indicating that buyers in River Valley may have a higher sensitivity to pricing.

Given its prime location, River Valley condos have seen much interest with en bloc attempts, such as Horizon Towers and Orchard Bel Air, relaunched recently with an unchanged price tag of $1.1 billion and $587.5 million respectively. Tenders for both projects will close in March.