Loyang Valley condo up for collective sale at $980 million
Loyang Valley condo up for collective sale at $980 million. Loyang Valley, a 362-unit Changi condominium, is attempting its first collective sale with a $980 million reserve price. The public tender for the 99-year leasehold land will be opened on Thursday. This comes after the Loyang Valley collective sales committee (CSC) received the necessary 80% mandate in September.
Its previous attempt at a collective sale, with a reserve price of $750 million, failed in 2018. According to Mr Terence Lian, head of investment sales for marketing agent Huttons Asia, at $980 million, owners of two-bedroom flats will receive an average of $1.86 million, while owners of three-bedroom units will receive an average of $2.7 million. The owners of the largest four-bedroom apartments will each receive $4.35 million.
The reserve price translates to a land cost of $997 per square foot per plot ratio (psf ppr), which includes a $174 million land betterment charge and a $187 million lease upgrading premium. Mr Lian indicated that after accounting for a 7% bonus balcony gross floor area and a $57 million land betterment charge, the land rate could be decreased to $972 psf ppr.
Loyang Valley is located near the proposed Loyang MRT station and has 59 years remaining on its lease. The 78,098.8 sqm (approximately 840,648 sq ft) property is designated for residential development in the 2019 Master Plan, with a gross plot ratio of 1.6. The total gross floor space of the redevelopment might be around 1.35 million square feet. A new building on the plot, subject to planning approval, could hold up to 1,249 residential units averaging 1,076 square feet each.
The secretary of Loyang Valley’s CSC, Mr Lam Yoon Tuck, 70, told The Straits Times that there was more support for a collective sale this time because the Cross Island Line’s Loyang MRT station was confirmed, which will help improve the estate’s desirability. “At the moment, the reserve price of $750 million was not as tempting to owners.” “The lease is also coming to an end, and the estate is becoming older,” Mr Lam, a retiree who has lived on the estate for about 30 years, explained.
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