Loyang Valley, a resort-style condominium located in Changi, will be relaunched for collective sale on 8 July, this time with a reduced reserve price of S$880 million. The figure marks a S$100 million reduction from its previous asking price in 2022, which marketing agent Huttons Asia describes as “a realistic and achievable figure given current market conditions”.
The 362-unit development, completed in 1985 and spanning 840,648 sq ft, sits on a 99-year leasehold site with 56 years remaining. The estate’s substantial land area and proximity to the upcoming Loyang MRT station on the Cross Island Line enhance its redevelopment potential, said Terence Lian, Head of Investment Sales at Huttons Asia.
The project’s last tender closed without bids in December 2022 after the reserve price had been increased from an initially proposed S$880 million to S$980 million in response to demands for higher returns. This time, however, Lian and his team have secured the requisite 80% consensus among homeowners to proceed with the sale.
Lian noted a significant shift in owner expectations, with many recognising the opportunity to unlock asset value in the face of lease decay, mounting maintenance costs, and considerations around legacy planning. He also cited the confirmed MRT connectivity as a catalyst for renewed interest.
The revised reserve translates to potential payouts of approximately S$1.67 million for owners of the smallest two-bedroom units (1,001 sq ft), and up to S$3.9 million for the largest four-bedroom configurations. One long-term resident, who purchased a 1,500 sq ft unit for under S$300,000 in 1985, estimates he could receive over S$2 million. He plans to downsize, travel, and preserve the remainder of the proceeds.
The potential easing of height restrictions around Changi Airport, while not yet officially confirmed, could further bolster developer interest. Details are expected to be clarified when the Urban Redevelopment Authority unveils the Draft Master Plan 2025 on 25 June, which will update zoning and gross plot ratio guidance. Under the current 2019 Master Plan, the site is zoned for residential use with a gross plot ratio of 1.6, allowing for approximately 1.35 million sq ft of gross floor area and an estimated 1,249 units, subject to planning approvals.
Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore, described the S$880 million reserve as reasonable, given the land size. However, he cautioned that developers would need to weigh the risks of launching a large-scale development of over 1,200 units. He suggested two supportive factors: first, a likely scarcity of new launches in the Loyang area until at least 2027, which could result in pent-up demand; second, the strategic location adjacent to the future MRT station, a feature developers could leverage to drive sales at higher prices.
According to Lian, developer interest in sizeable leasehold sites in the east has been measured but is gradually increasing, aided by improvements in market conditions. He attributed the lack of traction in the 2022 tender to factors including rising interest rates, surging construction costs, and policy-related risks such as additional buyer’s stamp duties.
These headwinds have since moderated. Easing interest rates, along with infrastructure upgrades like the upcoming Changi Airport Terminal 5, are expected to bolster confidence among developers and investors.
Loyang Valley’s first collective sale attempt in 2018, priced at S$750 million, failed to secure sufficient backing. Its 2022 exercise saw greater support, driven by improved connectivity and heightened redevelopment awareness, but the high reserve remained a sticking point.
With momentum now shifting and a more calibrated price expectation, homeowners remain cautiously optimistic that the third attempt may finally succeed.
-The Strait Times
