Loyang Valley condo up for collective sale at $980 million

Loyang Valley, which has 59 years left on its lease, is located near the future Loyang MRT station. PHOTO: HUTTONS ASIA

SINGAPORE - Loyang Valley, a 362-unit condominium in Changi, is making its first stab at a collective sale with a reserve price of $980 million.

The public tender for the 99-year leasehold site will open on Thursday.

This comes after the Loyang Valley collective sales committee (CSC) obtained the 80 per cent requisite mandate in September.

Its previous attempt at a collective sale in 2018, at a reserve price of $750 million, failed to garner sufficient support.

At $980 million, the owners of two-bedroom units there each stand to receive about $1.86 million on average, while the owners of three-bedders could get about $2.7 million each, according to Mr Terence Lian, head of investment sales for marketing agent Huttons Asia.

The owners of the biggest four-bedroom apartments stand to pocket about $4.35 million each.

The property’s reserve price translates to a land rate of $997 per square foot per plot ratio (psf ppr), including an estimated land betterment charge of about $174 million and a lease upgrading premium of $187 million.

The land rate could be lowered to $972 psf ppr after factoring in a 7 per cent bonus balcony gross floor area and an additional land betterment charge of $57 million, Mr Lian said.

Loyang Valley, which has 59 years left on its lease, is located near the future Loyang MRT station.

The 78,098.8 sq m (about 840,648 sq ft) site is zoned for residential use with a gross plot ratio of 1.6 under the 2019 Master Plan. It can yield approximately 1.35 million sq ft of gross floor area upon redevelopment.

A new development on the site can accommodate up to 1,249 residential units, averaging 1,076 sq ft each, subject to planning approval.

Mr Lam Yoon Tuck, 70, secretary of Loyang Valley’s CSC, told The Straits Times that there was more support for a collective sale this time after it was confirmed that the Cross Island Line’s Loyang MRT station will be built, which will help boost the estate’s appeal.

“Back then, the $750 million reserve price was not as attractive to owners. The lease is also running down, and the estate is ageing,” said Mr Lam, a retiree who has lived in the estate for about 30 years.

The public tender for the 99-year leasehold site will open on Thursday. PHOTO: HUTTONS ASIA

Hutton’s Mr Lian said: “The Loyang Valley site is a perfect enclave for resort homes in an idyllic setting and heritage of Changi. The east region will provide plenty of jobs in the semiconductor and aviation-related industry clusters at Tampines North, Pasir Ris and Changi.”

The site is close to major employment hubs such as Changi Business Park, Changi International LogisPark, Changi Aviation Park, the upcoming Changi East Industrial Zone and Changi Airport, as well as Singapore University of Technology and Design and the Singapore Expo.

The Loyang viaduct along Loyang Avenue, currently under construction, will provide improved intra-town and inter-town connectivity.

The tender closes on Dec 15 at 2pm.

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