Loyang Valley nearing en bloc deal, with several developers in due diligence

[SINGAPORE] Changi condominium Loyang Valley, put up for sale at an indicative price of S$880 million, is close to a deal, with several interested buyers in talks with the collective sale committee. 

“We are already in active discussions with interested buyers and remain confident of concluding a successful outcome soon,” Terence Lian, Huttons Asia’s head of investment sales, said on Tuesday (Sep 9) after the tender closed for the collective sale of the condo.  

“The collective sale committee, together with its consultants, is engaging these parties with the aim of concluding a successful transaction soon.” 

The Business Times understands that several developers have conducted due diligence on the 7.8 hectare site, which can yield up to 1,249 units. The 99-year leasehold site currently houses 362 apartments. 

The indicative price of S$880 million works out to a land cost of S$936 per square foot per plot ratio (psf ppr), inclusive of an estimated land betterment charge of about S$221 million, and a lease upgrading premium of about S$245 million after factoring in a 7 per cent bonus balcony gross floor area. 

On Aug 21, the Civil Aviation Authority of Singapore confirmed that the site’s height limit can be revised upwards from 40 m Singapore Height Datum (SHD) to 50 m SHD, which will enhance its redevelopment potential, Huttons said. 

Lian said that with the higher allowable height, developers “may be able to optimise the design by reducing the number of blocks, therefore freeing up more space for landscaping and communal facilities”.

As this update came shortly before the tender closed on Tuesday, several parties have requested for more time to refine their proposals in light of these updated planning parameters, he added. 

Huttons said: “The site is well positioned to benefit from major transformation in the east, including the upcoming Loyang MRT station on the Cross Island Line, the new Loyang Viaduct, and proximity to key employment hubs such as Changi Business Park, Aviation Logistics Park, Loyang Industrial Estate, Changi East Industrial Zone and Changi Airport Terminal 5.”

Five units in Loyang Valley were sold this year, URA Realis data showed. 

The most recent sale was in July, when a 1,862 sq ft unit changed hands for S$1.8 million or S$967 psf. 

The last new launch in the Changi East area was freehold condo Kassia, which sold 52 per cent of its 276 residential units on its launch weekend in July 2024. Prices ranged between S$1,821 and S$2,177 psf. The Flora Drive project is being developed by Hong Leong Holdings, City Developments Ltd and TID.