Latest news with #TerenceLian
Business Times
02-07-2025
- Business
- Business Times
Loyang Valley owners make third try for en bloc sale at S$880 million
[SINGAPORE] Changi condominium Loyang Valley is being put up for collective sale for S$880 million, in its third attempt at an en-bloc deal. The 99-year leasehold property sits on a 840,648 square feet (sq ft) plot of land, which now houses 362 apartments. Subject to planning approval, developers may build around 1,249 dwelling units, assuming an average unit size of 1,076 sq ft, marketing agent Huttons Asia said on Wednesday (Jul 2). The indicative price of S$880 million works out to a land cost of S$936 per sq ft per plot ratio (psf ppr), inclusive of an estimated Land Betterment Charge of approximately S$221 million, and a lease upgrading premium of approximately S$245 million after factoring in a 7 per cent bonus balcony gross floor area. Loyang Valley's first attempt at a collective sale was made in 2018, at a reserve price of S$750 million, but it failed to garner sufficient support. In 2022, the condominium was launched for sale at S$980 million, but pulled in no bids when the tender closed later that year. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Huttons Asia's head of investment sales Terence Lian said: 'Given current market dynamics, the reduced reserve price of S$100 million below the previous level offers a compelling and achievable opportunity for developers.' Owners stand to receive between S$1.67 million and S$3.9 million for their properties, which range from 1,001 sq ft for the smallest two-bedroom unit to 3,272 sq ft for the four-bedroom unit, the development's largest. Four units in Loyang Valley were sold this year, said URA Realis. The most recent sale was in May 2025, when a 1,980 sq ft unit changed hands for S$1.9 million or S$959 psf. Huttons' Lian said: 'Loyang Valley offers a rare opportunity to develop a tranquil residential enclave in the East, blending modern living with the charm of Changi's heritage.' Built in 1985, the development has 56 years left on its 99-year lease. Under the 2019 Master Plan, the site is zoned for residential use and has a gross plot ratio of 1.6. The last new launch in the Changi East area was freehold condominium Kassia, which sold 52 per cent of its 276 residential units on its launch weekend in July 2024. The prices ranged between S$1,821 and S$2,177 psf. The development's site on Flora Drive is being developed by Hong Leong Holdings, City Developments and TID. Significant infrastructure and industrial developments are expected in the Changi East area, and these include the Loyang Viaduct and the Cross Island Line, which will put a new Loyang MRT station next to the condo's site. The Changi East area now under development expand to nearly double the footprint of the current Changi Airport; it will add 10.8 sq km of new infrastructure, including Terminal 5, a third runway, the Changi East Industrial Zone and the Changi East Urban District. Loyang Valley is also near industrial hubs such as Aviation Logistics Park, Loyang Industrial Estate and Changi Business Park. Lian said: 'With growing demand from the semiconductor and aviation sectors in Tampines North, Pasir Ris and Changi, the site offers a strong rental catchment for investors, while providing residents with convenient access to job opportunities and lifestyle offerings.' The tender for Loyang Valley, to be launched on Jul 8, closes on Sep 9.
The Star
14-06-2025
- Business
- The Star
Singapore's Loyang Valley condo makes third bid at collective sale with lower reserve price of S$880 million
SINGAPORE: Loyang Valley condominium in Changi will be making a third attempt at a collective sale, with a reduced reserve price of S$880 million. The lower reserve price, which is $100 million less than its last tender in 2022, 'reflects a realistic and achievable figure given current market conditions', said Terence Lian, head of investment sales for the appointed marketing agent, Huttons Asia. In 2022, the collective sale committee initially proposed a reserve price of $880 million but raised it to $980 million after some owners sought higher returns. No bids were received when the tender closed on Dec 15 that year. In May 2025, Lian and his team of property salespeople successfully obtained the requisite 80 per cent mandate to proceed with the collective sale. The public tender for Loyang Valley is expected to launch on July 8 and close on Aug 26. The 362-unit condominium in Changi, built in 1985, is a sprawling resort-style estate spanning 840,648 sq ft, with 56 years remaining on its 99-year lease. This round marks a significant shift in seller expectations, noted Lian. 'Several factors have motivated owners to support the collective sale, including lease decay, ongoing maintenance issues associated with the ageing property, the opportunity to unlock asset value with a premium, and considerations related to legacy planning,' he said. 'The confirmed Cross Island Line's Loyang MRT station was factored into our analysis and positively influenced the site's future potential.' At $880 million, the owner of the smallest two-bedroom unit of 1,001 sq ft stands to receive about $1.67 million, while the owner of the largest four-bedroom unit can get about $3.9 million, he said. One owner, who has been living in Loyang Valley since 1985, told The Straits Times that he expects to get more than $2 million for his 1,500 sq ft unit. The retiree, who asked not to be named, had paid less than $300,000 for his unit. He said he plans to use the proceeds to buy a four-room Housing Board flat in the vicinity, go on holidays and save the rest. 'I have a feeling the sale will go through this time, after the Government announced that it will lift the height restrictions for buildings around this area,' he said. Alan Cheong, executive director of research and consultancy at Savills Singapore, said that while there has been talk of easing height restrictions near Changi Airport, the specifics have yet to be confirmed. On June 25, the Urban Redevelopment Authority will be unveiling the Draft Master Plan 2025, which will provide clarity on the gross plot ratio and updated zoning for the site. Under the 2019 Master Plan, the site is zoned for residential use and has a gross plot ratio of 1.6. 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. Cheong said the $880 million price tag is reasonable given the land size, though developers will have to assess the risk of launching a project with more than 1,200 units. 'Still, two factors are in their favour,' he noted. 'One – by the time (the new development) is launched for sale by the developer, probably in 2027, there would have been a lack of new condominium launches in the Loyang area for over three years. This would have created pent-up demand to be discharged into this project,' said Cheong. 'Second, if the sale is successful, by the time the new development is completed, the Loyang MRT station serving the Cross Island Line would be completed and located just adjacent to the site. The developer could then hype his project using this unique selling point. Then, a higher selling price, even with over 1,200 units, would be palatable.' Lian said: 'While developer appetite for large leasehold sites in the eastern region remains measured, interest is gradually picking up as infrastructure and surrounding industrial developments evolve.' He explained that the failed 2022 tender came amid a slew of headwinds such as interest rate hikes, construction cost inflation, additional buyer's stamp duty risks, and increased land and development charges. Market conditions have since improved. Interest rates are starting to ease, and major infrastructure projects in the east, like Changi Airport's Terminal 5, are boosting the site's long-term growth potential and appeal to developers and investors alike, said Lian. Loyang Valley first attempted a collective sale in 2018 at $750 million, but failed to gather sufficient support. Its 2022 exercise saw stronger backing, spurred by confirmation of the Cross Island Line and growing awareness of the redevelopment potential. But the high reserve price proved a stumbling block. Now, with momentum on their side, home owners ST spoke to believe the third time is the charm. - The Straits Times/ANN
