Senja Close EC™

The collective sale tender for Loyang Valley, a 40-year-old condo, closed on Sept 9 without receiving any bids. Despite this setback, the deal may still have a chance of going through.

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

In the meantime, several residents recently gathered for a birthday celebration at one of their homes, where the main topic of conversation was the fate of their condominium’s en bloc sale. Opinions were divided between those who supported the sale and those who did not.

Bernard Lim, who has owned a unit at Loyang Valley for 16 years, shared that when he first bought his place, he had told his son that he would probably live there until he passed away. However, he believes that the en bloc sale is a good opportunity and has signed up for it.

Lim’s main concern is the decay of the lease. Loyang Valley was completed in 1985 but its 99-year lease began in 1982, leaving only 56 years left. Another resident, Andrew Tan, who has lived there for 30 years, shared the same view as Lim and has also consented to the collective sale agreement.

However, there are also others who chose not to sign, such as Charles Lee, who bought two units eight years ago and currently lives in one while renting out the other. Lee explained that his ground-floor unit is larger and he loves the peaceful, green environment which cannot be found in other condos. He clarified that not signing the agreement does not make him against the collective sale, and that he is confident it will go through. He simply wants to ensure that the sale reflects the property’s true value.

Juliann Teo, who has owned a two-bedroom unit with her husband for 16 years, also did not sign and stated that they are indifferent to the outcome and have taken a wait-and-see approach.

Regardless of their stance, all owners have a vested interest in the outcome of the en bloc sale as Loyang Valley is their primary residence. According to Lee, only about 55 units, or 15%, are rented out, and the rest are owner-occupied.

What residents value most about Loyang Valley are its lush landscaping and mature trees, which provide a cool environment even on hot days. Despite being only a seven-minute drive from Changi Airport, the development is not in the flight path, allowing residents to see hornbills, kingfishers and eagles rather than planes.

Under the URA Draft Master Plan 2025, the site is zoned for residential use with a gross plot ratio of 1.6. This means that the 840,648 sq ft estate could potentially yield about 1.35 million sq ft of gross floor area. Assuming an average unit size of 1,076 sq ft, a new development could comprise of around 1,249 units.

On Aug 21, the Civil Aviation Authority of Singapore raised the height limit for the site from 40m to 50m, which will allow for future redevelopment to reach 12 storeys, according to Lian.

The 840,648 sq ft estate comprises of 362 units across 12 red-brick blocks with pitched roofs and expansive balconies, ranging from four to seven storeys. It has the second largest land area in the east after Mandarin Gardens (1,006 units), a 99-year leasehold site on a 1.08 million sq ft of land.

The current reserve price for Loyang Valley’s en bloc sale is $880 million, which is lower than the original target of $980 million in 2020 but higher than the initial guide of $750 million in 2018.

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

This is the owners’ third attempt at a collective sale. Developers have shown a lot of interest in suburban or Outside Central Region (OCR) projects, with 92% of units at Springleaf Residence (941 units) sold on its launch weekend at an average price of $2,175 psf. Springleaf Residence is now 94% sold a month later.

In March, Lentor Central Residences (477 units) sold 93% of its units at $2,308 psf during its launch. In February, ParkTown Residence (1,193 units) in Tampines sold 87% at launch at an average price of $2,360 psf and has reached 92% sales to date. Chuan Park (520 units) achieved 76% sales on its first weekend in November 2019 at an average of $2,579 psf and is currently 86% sold.

Developers have also been aggressively bidding for government land sale (GLS) sites recently, with a Sing Holdings – Sunway Developments joint venture winning two adjacent Chuan Grove sites 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 (or $980 psf ppr) for a mixed-use site in the upcoming Chencharu Town, Yishun.

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The URA recently launched the Bedok Rise site for sale with the tender closing on Nov 27. Being the last site fronting Tanah Merah MRT Interchange Station, it is expected to receive bids of $1,100 to $1,300 psf ppr.

According to Lian, En Bloc sale of Loyang Valley has an advantage in terms of location, being located right next to the upcoming Loyang MRT Station, providing future residents with a two- to three-minute walk to the station. Developers can also set aside 0.3% of the total GFA (around 4,035 sq ft) for commercial uses such as a childcare centre, minimart, laundromat, or café.

He added that strong suburban or Outside Central Region (OCR) sales have played a key role in driving developer interest. The URA Master Plan 2025 envisions the broader Changi Region to be a thriving economic hub, with expansion plans for Changi Airport and the future Terminal 5 expected to be completed by mid-2030s. The plan also includes a 40-ha Changi East Urban District, a mixed-use business and lifestyle precinct.

Nearby, Tampines Regional Centre will add new residential and commercial plots, and parts of Tampines Central 5 will be pedestrianized and integrated with a central public space.

All these developments make Loyang Valley an attractive option for developers, with its proximity to the two high-growth areas.