Reasons for Gap between Developers’ Expectations of Development Feasibility and URA’s Assessment of Reserve Price

Mr Chua Kheng Wee Louis asked the Minister for National Development with regard to the tender for a 99-year leasehold master developer site at Jurong Lake District (a) what are the reasons for the gap between developers’ expectations of development feasibility and the URA’s assessment of its reserve price; and (b) whether the URA plans to retain the master developer approach when tendering the land sites at Jurong Lake District.

The Government is committed to the development of Jurong Lake District (JLD) as a model for sustainable development, integrating business, residential and recreational spaces, outside of the city centre. The Urban Redevelopment Authority will continue to engage with industry stakeholders for feedback on JLD’s plans and review the approach for the Master Developer site.

Meanwhile, the JLD Master Developer site is placed on the Reserve List, to allow interested tenderers to activate the launch of the site under the Concept and Price Revenue Tender approach, subject to a minimum price that is acceptable to the Government.

Land valuation depends on many factors, such as prevailing macroeconomic and property market conditions, proposed land use and site-specific conditions. The bidders would also have their own perspectives of how these factors may impact the development proposals and factor them into their corresponding land valuations. Hence, we are unable to comment on developers’ land valuation approach.