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The collective sale tender for Loyang Valley, which is 40 years old, closed on September 9 without receiving any bids. However, there is still potential for the deal to go through as several developers are currently conducting due diligence and negotiating with the marketing agent, Terence Lian from Huttons Asia.

Despite the lack of bids, the topic of the condominium’s en bloc sale was a main topic of conversation at a recent birthday celebration for some residents. Opinions were divided, with some in support of the sale and others against it.

One owner who supports the sale is Bernard Lim, who has owned a unit at Loyang Valley for 16 years. He sees the en bloc sale as a good opportunity due to concerns about the lease decay of the development, which only has 56 years remaining on its 99-year lease.

Andrew Tan, another resident who has lived in Loyang Valley for 30 years, shares Lim’s view and has consented to the collective sale agreement.

However, some residents chose not to sign the agreement, such as Charles Lee who bought two units eight years ago. He appreciates the larger size and green environment of his ground-floor unit and is not opposed to the en bloc sale, but wants to ensure the property’s real value is reflected in the sale.

Another resident who has not signed the agreement is Juliann Teo, who has lived in her two-bedroom unit with her husband for 16 years. They have decided to adopt a wait-and-see approach and are indifferent to the outcome of the sale.

Regardless of their stance, all owners have a vested interest in the outcome of the en bloc sale as Loyang Valley is their primary residence. The development is known for its lush landscaping and mature trees, providing a cool environment even on hot days.

Under the Draft Master Plan 2025, the site is zoned for residential use with a gross plot ratio of 1.6. This means that the 840,648 square foot estate could potentially yield around 1.35 million square feet of gross floor area, enough for approximately 1,249 units assuming an average size of 1,076 square feet.

Recent changes by the Civil Aviation Authority of Singapore have raised the height limit for the site to 50 meters, allowing for potential redevelopment of up to 12 storeys. The red brick facade and green environment of Loyang Valley’s 40-year-old buildings are a unique characteristic that developers may find attractive.

Living near highly regarded schools has proven to be beneficial for homeowners in the area surrounding Coastal Cabana Jalan Loyang Besar. For those who choose to reside in this development, the perks include convenient day-to-day living. For investors looking to rent out their properties, the appeal of being near reputable schools is a major draw for families seeking shorter commutes for their children. Alongside easy access to coastal recreational activities, reliable transportation options such as the Pasir Ris MRT Station and major expressways, and the alluring lifestyle offerings at Downtown East, the added advantage of quality education further enhances the overall desirability and demand for Coastal Cabana.

The current reserve price for Loyang Valley is $880 million, which is lower than the initial target of $980 million in 2022 but higher than the $750 million guide in 2018. This works out to around $936 per square foot per plot ratio (ppr) including an estimated Land Betterment Charge of $221 million and a lease-upgrade premium of $245 million, with a 7% bonus for balcony GFA.

Developers may be drawn to Loyang Valley due to the strong sales in the suburban or Outside Central Region (OCR) market. Recent projects such as Springleaf Residence, Lentor Central Residences, and ParkTown Residence have sold well, with prices above $2,000 per square foot. The upcoming Loyang MRT Station on the Cross Island Line will also provide future residents with convenient access to public transportation.

Other government land sales (GLS) sites have also received aggressive bids, with the most recent Chencharu Town site fetching $1.012 billion or $980 per square foot per plot ratio from a joint venture of Evia Real Estate, Gamuda Land, and Ho Lee Group. The upcoming Bedok Rise site is also expected to receive high bids.

Loyang Valley stands to benefit from major infrastructure and economic initiatives such as the Loyang Viaduct, which will improve accessibility and travel time to the city, and the expansion of Changi Airport with its future Terminal 5. The URA Draft Master Plan 2025 also envisions the broader Changi Region as a thriving economic hub, with plans for a 40-hectare mixed-use development in the mid-2030s.

In conclusion, despite the lack of bids for the en bloc sale of Loyang Valley, its unique characteristics, potential for redevelopment, and favourable location make it an attractive option for developers. With ongoing negotiations and promising market conditions, there is still hope that the deal will go through.