Loyang Valley Makes Third Collective Sale Attempt with Lower Reserve Price of $880 Million
Loyang Valley, a sprawling 362-unit condominium in Changi, is making its third bid for a collective sale — this time with a more realistic reserve price of $880 million. The new price is $100 million lower than its previous attempt in 2022, reflecting current market conditions and seller expectations.
Why the Lower Price?
According to Terence Lian, Head of Investment Sales at Huttons Asia, the revised price is more achievable given today’s economic climate. In 2022, the reserve price was raised to $980 million after some owners pushed for higher returns, but the tender closed without any bids.
This time, the collective sale committee secured the required 80% approval in May 2025, paving the way for a public tender that will launch on July 8 and close on August 26.
A Resort-Style Estate with Redevelopment Potential
Built in 1985, Loyang Valley sits on a massive 840,648 sq ft site with 56 years left on its 99-year lease. The development has a resort-style layout and is located near the upcoming Loyang MRT station on the Cross Island Line — a key factor boosting its redevelopment appeal.
Owners stand to gain significantly. A two-bedroom unit of 1,001 sq ft could fetch around $1.67 million, while a four-bedroom unit may go for up to $3.9 million. One long-time resident, who bought his unit for under $300,000 in 1985, expects to receive over $2 million.
“I think the sale will go through this time,” he said, citing the government’s recent announcement to lift building height restrictions in the area.
What’s Driving Seller Interest?
Mr. Lian noted several reasons why owners are now more supportive of the sale:
- Lease decay and rising maintenance costs
- Opportunity to unlock asset value
- Legacy planning considerations
- Improved infrastructure, including the confirmed Loyang MRT station
What Developers Should Know
Under the 2019 Master Plan, the site is zoned for residential use with a gross plot ratio of 1.6. This allows for up to 1.35 million sq ft of gross floor area, potentially yielding 1,249 units averaging 1,076 sq ft each, subject to planning approval.
Alan Cheong from Savills Singapore said the $880 million price tag is reasonable, but developers will need to weigh the risks of launching a large-scale project. Still, he sees two advantages:
- Pent-up demand: By 2027, there will have been few new condo launches in the Loyang area.
- Transport boost: The Loyang MRT station will be completed by then, adding strong appeal to future buyers.
Market Conditions Improving
Mr. Lian added that developer interest in large leasehold sites in the east is slowly picking up. Factors like easing interest rates, reduced construction costs, and major infrastructure projects — including Changi Airport Terminal 5 — are helping to improve sentiment.
Loyang Valley’s first collective sale attempt in 2018 failed due to lack of support. The second in 2022 had stronger backing but was hindered by a high reserve price and market headwinds. Now, with more realistic pricing and better conditions, homeowners believe the third time could be the charm.
