Archive for category: Misc

Collective Sale Tender For Loyang Valley Closes Without a Bid

The collective sale tender for Loyang Valley, a 40-year-old private condominium in District 17, closed on Sept 9 without a bid. However, there may still be a chance for the deal to go through.

According to Terence Lian, head of investment sales at Huttons Asia, more than two developers are currently conducting their due diligence and negotiations are at an advanced stage.

During the following weekend, a group of residents gathered for a birthday celebration and the main topic of conversation was the fate of their condominium’s en bloc sale. Opinions were evenly split between those who supported the sale and those who did not.

Bernard Lim, who has owned a unit at Loyang Valley for 16 years, says “When I first bought this place, I told my son I’d probably die here. But the en bloc sale is good. I signed up for it.” Lim’s main concern is the lease decay. Completed in 1985, Loyang Valley has a 99-year lease with only 56 years remaining.

Andrew Tan, a resident for 30 years, also shares Lim’s views and has consented to the collective sale agreement. On the other hand, Charles Lee, who bought two units eight years ago, didn’t sign the agreement. He explains: “Mine is a ground-floor unit, so it is larger than those on the upper floors. You can’t find another condo with such a nice green environment.”

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He makes it clear that not signing the agreement does not mean that he is against the en bloc sale. “I’m very confident the sale will go through,” he adds. “We just want to be sure it reflects the property’s real value.”

Another resident who didn’t give their consent is Juliann Teo, who purchased her two-bedroom unit with her husband, Raymond, 16 years ago. Their reason for not signing is simple: they are “indifferent” and have decided to adopt a wait-and-see approach. “If it happens, it happens,” she says.

However, regardless of their stance, all owners have a vested interest in the outcome, as Loyang Valley is their primary residence. According to Lee, only about 55 units (15%) are rented out; the remaining 362 units are owner-occupied.

The residents highly value the lush landscaping and mature trees in Loyang Valley. Teo says “Even on hot days, it’s cool here because of the trees.” Despite being just a seven-minute drive from Changi Airport, the development is outside the flight path. “You can see hornbills, kingfishers and eagles, but not planes,” she adds.

The 840,648 sq ft estate comprises of 12 red-brick blocks with 362 units, ranging from four to seven storeys, each featuring pitched roofs and expansive balconies. Loyang Valley’s land area is the second-largest in the east after Mandarin Gardens, a 1,006-unit private condo on a 1.08 million sq ft, 99-year leasehold site.

According to the Draft Master Plan 2025, the site is zoned residential with a gross plot ratio of 1.6. This translates to about 1.35 million sq ft of gross floor area (GFA). Assuming an average unit size of 1,076 sq ft, a new project could yield roughly 1,249 units.

At $880 million, the indicative price works out to about $936 psf per plot ratio (ppr), inclusive of an estimated $221 million Land Betterment Charge and a $245 million lease-upgrade premium, with a 7% bonus factored in for balcony GFA.

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This was the owners’ third attempt at a collective sale. The current reserve price of $880 million is lower than the $980 million target set in 2022 but higher than the $750 million guide in 2018.

On Aug 21, the Civil Aviation Authority of Singapore raised the site’s height limit from 40 m to 50 m. This will allow any future redevelopment to rise to 12 storeys, notes Huttons’ Terence Lian.

The upcoming Loyang MRT Station on the Cross Island Line will be situated next to the site, providing future residents with a two- to three-minute walk to the station. Developers can also set aside 0.3% of the total GFA, which is around 4,035 sq ft, for commercial uses such as childcare centres, minimarts, laundromats, or cafes.

According to Lian, strong suburban or Outside Central Region (OCR) sales are one of the key drivers of developer interest. For instance, Springleaf Residence sold 92% of its 941 units on the launch weekend at an average of $2,175 psf. It is now 94% sold a month later.

Lentor Central Residences sold 93% of its 477 units at $2,308 psf during its March launch. The previous month in February, the 1,193-unit ParkTown Residence in Tampines sold 87% at launch at an average price of $2,360 psf. It is now 92% sold. Chuan Park achieved 76% sales on its first weekend last November at an average of $2,579 psf and is now about 86% taken up.

Developers have also bid aggressively for government land sales (GLS) sites in recent months. In September, a Sing Holdings–Sunway Developments joint venture won two adjacent Chuan Grove plots for a combined $1.33 billion, or $1,335 psf ppr, to build 1,055 units.

Another joint venture of Evia Real Estate, Gamuda Land and Ho Lee Group bid $1.012 billion ($980 psf ppr) for a mixed-use site in the upcoming Chencharu Town, Yishun. URA recently launched the Bedok Rise site for sale, with the tender closing on Nov 27.

The land parcel is the last site fronting the Tanah Merah MRT Interchange Station, and is projected to fetch top bids of $1,100 to $1,300 psf ppr. “Likewise, Loyang Valley will sit at the doorstep of Loyang MRT Station,” says Lian, making its $936 psf ppr land rate “very attractive by comparison.”

The latest transaction at Loyang Valley was for a 1,582 sq ft, second-floor two-bedroom unit that changed hands for $1.546 million ($977 psf), based on a caveat lodged on Sept 9. Before that, another 1,862 sq ft, three-bedroom unit on the second floor of another block was sold for $1.8 million ($967 psf) in July.

Beyond the MRT, Loyang Valley stands to benefit from major infrastructure and economic initiatives. The Loyang Viaduct, currently under construction, will significantly enhance accessibility and reduce travel time to the city.

The URA Draft Master Plan 2025 envisions the broader Changi Region as a “thriving economic hub,” anchored by the expansion of Changi Airport and the future Terminal 5. Also planned is the 40-ha Changi East Urban District, a mixed-use business and lifestyle precinct slated for the mid-2030s.

Nearby, Tampines Regional Centre will add new residential and commercial plots, with parts of Tampines Central 5 to be pedestrianised and integrated with a central public space. “Loyang Valley will benefit from its proximity to these two high-growth areas — Changi and Tampines Regional Centre,” Lian concludes.

See more: Is Loyang Valley a good investment tool? | Relaunched Loyang Valley gets $1,020 psf ppr price

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