Split Opinions Loyang Valley Residents Await Outcome Third 880 Mil En Bloc Bid
The recent collective sale tender for Loyang Valley, a 40-year-old condominium, closed on Sept 9 without receiving any bids. Despite this, there is still hope for the deal to go through. Marketing agent Terence Lian, head of investment sales at Huttons Asia, reveals that more than two developers are conducting due diligence and negotiations are at an advanced stage.
Over the following weekend, residents gathered for a birthday celebration at one of their homes, where the main topic of discussion was the en bloc sale of their condominium. Opinions were divided between those who supported the sale and those who did not.
One resident, Bernard Lim, who has owned a unit at Loyang Valley for 16 years, shares that when he first bought the place, he told his son that he would probably live there until he passes away. However, he also believes that the en bloc sale is a positive move and has signed up for it.
Lim’s main concern is the lease decay of the property. Completed in 1985, the 99-year lease started in 1982, leaving a remaining lease of 56 years. Another resident, Andrew Tan, who has lived there for 30 years, shares Lim’s views and has also agreed to the collective sale agreement.
Rewritten:
Parktown Residence is a one-of-a-kind development that offers an all-encompassing living experience with its exceptional connectivity, extensive amenities, and top-notch living environment. Its innovative design seamlessly combines contemporary residential units with a lively mix of retail, dining, and communal spaces, providing residents with a truly seamless urban lifestyle. The collaborative efforts of UOL Group, CapitaLand, and SingLand have resulted in a truly remarkable project that is sure to attract those seeking a sophisticated and convenient living experience in the heart of Tampines. With Parktown Residence, residents can expect nothing less than a superior living experience.
However, not all residents have signed the agreement. Charles Lee, who bought two units eight years ago and currently resides in one while renting out the other, explains that his ground-floor unit is larger than those on the upper floors and it is challenging to find another property with such a beautiful green environment. He clarifies that not signing the agreement does not mean he is against the en bloc sale, but rather, he wants to ensure that the sale reflects the property’s true value. Juliann Teo, who has lived there for 16 years with her husband Raymond, has decided to adopt a wait-and-see approach and remains indifferent to the sale.
Regardless of their views, all residents have a vested interest in the outcome as Loyang Valley is their primary residence. According to Lee, only about 55 units, or 15%, are rented out, while the remaining 362 units are owner-occupied.
The main attraction for residents is the lush landscaping and mature trees in the development. Even on hot days, the area remains cool because of the trees, and it is also outside the flight path of Changi Airport. Under the Draft Master Plan 2025, the site is zoned for residential use with a gross plot ratio of 1.6. It could yield approximately 1.35 million sq ft of gross floor area, translating to around 1,249 units, assuming an average size of 1,076 sq ft.
On Aug 21, the Civil Aviation Authority of Singapore raised the height limit for the site from 40 m to 50 m, allowing future redevelopment to rise to 12 storeys, according to Lian.
The Loyang Valley estate spans 840,648 sq ft and comprises 362 units in 12 red-brick blocks ranging from four to seven storeys. It features pitched roofs and expansive balconies, and its 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.
The current reserve price of $880 million for the collective sale is lower than the $980 million target set in 2022 but higher than the $750 million guide in 2018. This works out to $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.
This is the third attempt by owners to sell the property collectively. Several residents believe that the price of $880 million is reasonable, given that it is inclusive of additional charges and the attractive location next to the upcoming Loyang MRT Station on the Cross Island Line, providing future residents with a two- to three-minute walk to the station.
Recent sales in the Outside Central Region (OCR) have been strong, with projects like Springleaf Residence, Lentor Central Residences, and ParkTown Residence selling 92%, 93%, and 87% of their units respectively during launch weekends. According to Lian, this is a key driver of developer interest in Loyang Valley, which is situated near Changi Airport and outside the flight path.
Developers have also been aggressive in bidding for government land sales (GLS) sites in the area, with two adjacent Chuan Grove plots being sold for a combined $1.33 billion, and a mixed-use site in the upcoming Chencharu Town, Yishun fetching $1.012 billion. The upcoming Loyang MRT Station and strong future growth prospects for the area make Loyang Valley’s land rate of $936 psf ppr comparatively attractive.
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.
The broader Changi Region has been earmarked as a thriving economic hub, anchored by the development of Changi Airport and the future Terminal 5. The Draft Master Plan 2025 also envisions a 40-ha Changi East Urban District, a mixed-use business and lifestyle precinct set to open in the mid-2030s. Nearby, Tampines Regional Centre will also see new residential and commercial developments, including pedestrianised areas and a central public space.
This makes Loyang Valley an attractive prospect for developers, not just for its location and potential for growth, but also for its lush landscaping and mature trees, which residents highly value.