Two prime River Valley Green GLS sites released for sale
Two leasehold private residential sites in River Valley Green were released for sale on March 11 as part of the first-half 2024 Government Land Sales (GLS) programme in Singapore. The sites, known as River Valley Green Parcel A and Parcel B, can yield approximately 960 private homes, including long-stay serviced apartments.
River Valley Green Parcel A, which can yield 380 private homes, was launched for sale under the confirmed list. On the other hand, Parcel B, capable of producing 580 units, including 220 long-stay serviced apartments, is available for application under the reserve list. The latter will only be launched upon successful application by a developer committing to a minimum bid acceptable to the government.
Analysts suggest that developers may be more interested in Parcel A due to its smaller development size and absence of a long-stay serviced apartment requirement, which may be a deterrent for those without experience in the hospitality sector. Parcel B, while appealing, might not be triggered soon, given the upcoming supply from River Valley Green Parcel A and the nearby Zion Road Parcel A sites.
River Valley Green Parcel A is expected to attract healthy developer interest due to its prime district location, proximity to existing successful projects like Irwell Hill Residences, and its purely residential nature. Analysts anticipate up to five bids for Parcel A, projecting a top bid between $525 million and $560 million. Developers, however, remain cautious due to higher interest rates, economic uncertainties, and the 60% additional buyer’s stamp duty (ABSD) rate for foreign buyers. The punitive ABSD rate hike continues to pose a challenge for new home sales. The ABSD remission clawback rates have been revised, offering some respite and confidence to developers exploring sites with serviced apartment components.
