URA proposes rezoning several prime sites, potentially adding 750 residential units to City Centre

URA Proposes Rezoning Multiple Sites: City Centre Could Yield up to 750 New Private Homes

The Urban Redevelopment Authority (URA) recently gazetted proposed amendments to rezone several land parcels across the city centre and city fringe, spanning Telok Ayer Street, Cross Street, Mohamed Sultan Road, and Dover Road. According to analyst estimates, if these proposed changes are formalised, the city centre could yield up to 750 new private residential units, while also catalysing hotel developments and driving a rejuvenation of footfall in the area.

Injecting Residential and Hotel Supply into the City Centre: Cross Street and Telok Ayer Take Centre Stage

According to the gazetted proposal, the site along Cross Street currently occupied by the Market Street Interim Hawker Centre is slated to be rezoned from its existing use to residential with commercial on the first storey, with a Gross Plot Ratio (GPR) of 6.3. If developed into a ~30-storey private residential project in the future, the plot could potentially generate 190 to 200 private homes.

A stone's throw away at 51 Telok Ayer Street—the site of the demolished China Square Food Centre—URA plans to rezone the plot into two separate parcels: one for hotel use with a GPR of 7.0, and another for commercial use with a GPR of 12.6.

These proposed adjustments are poised to inject a more vibrant mixed-use ecosystem into the downtown core. Weekend foot traffic around Telok Ayer MRT station tends to thin out noticeably; introducing new hotel facilities will not only invigorate surrounding commercial activities but also draw more visitors, injecting fresh vibrancy into the Central Business District (CBD) and the Chinatown precinct.

The Telok Ayer Street plot enjoys a prime location close to both the CBD and a wealth of cultural and heritage landmarks, offering unmatched convenience for leisure travellers and corporate guests alike.

Mohamed Sultan Road: Potential 300-Unit Residential Site Flanked by Greenery and Lifestyle Amenities

Another prominent site in this round of rezoning is located along Mohamed Sultan Road. The proposed plot is set to be rezoned to residential with commercial on the first storey at a GPR of 2.8.

The parcel is primed for development into a private residential project. Nestled close to River Valley and Fort Canning Park, the enclave is predominantly characterised by mid-to-high-end private homes, supported by well-established lifestyle amenities and strong development potential.

With optimal site planning, the plot could yield around 300 units. A more conservative estimate based on a building height of up to 36 storeys suggests approximately 200 to 250 units. However, given its proximity to the Istana, the site may be subject to building height limits.

Downtown Retains Long-Term Appeal, but Prime Private Homes Face Buyer Caution

Analysts generally agree that prime city-centre sites, backed by exceptional connectivity and comprehensive amenities, remain perennial favourites among investors and high-net-worth individuals. However, amid macroeconomic uncertainties and the punitive Additional Buyer's Stamp Duty (ABSD) on foreign purchasers, new launches in these prime locations could encounter more cautious market absorption.

While downtown private homes possess resilient long-term capital preservation value, some buyers may adopt a watchful stance in the near term owing to global economic volatility, rental market adjustments, and higher transaction costs. Nonetheless, well-conceived developments with unique architectural and locational attributes will continue to appeal to buyers focused on wealth preservation and sustainable long-term returns.

Dover Road White Site Rezoned for Residential: Expected to Yield Nearly 700 Units and Ease one-north Housing Crunch

Beyond the city centre, URA also plans to rezone a "white" site along Dover Road for residential use. Located adjacent to one-north and the Singapore Science Park, market observers note the intent is clear: to provide more housing options for the burgeoning workforce in these research and technology clusters.

With the working population across one-north and the Science Park estimated at around 50,000, residential supply in the immediate vicinity remains tight. Developing this plot into housing will effectively ease local accommodation pressures and enable more professionals to live close to work.

Furthermore, the site enjoys excellent accessibility near one-north MRT station and sits within an established educational belt, surrounded by institutions such as Fairfield Methodist School (Primary) and INSEAD, further augmenting its residential appeal.

The parcel could potentially be earmarked for either public housing (HDB flats) or private residential development. If designated for HDB, it could yield around 480 to 500 flats; if developed for private housing, factoring in the plot ratio, it could supply around 680 to 700 units.

Over 1,400 New Homes in the Pipeline: City Centre Transitions Towards Greater Diversity

In summary, should all proposed URA zoning amendments be implemented, they could introduce up to 750 private homes across the city centre, alongside approximately 700 units at Dover Road, bringing the total pipeline to over 1,400 new residential units.

Against a backdrop of a stabilising private residential market and heightened macroeconomic volatility, these site adjustments not only build a strategic land bank for future housing demand, but also accelerate the ongoing rejuvenation of Singapore's city centre—transforming it from a conventional monocultural business district into a dynamic, live-work-play urban ecosystem.