Where Singapore’s heritage precinct meets its modern commercial core, a new hospitality development opportunity has emerged on the Government Land Sales programme.
The Urban Redevelopment Authority has placed a hotel site at Telok Ayer Street on the reserve list for the second half of 2025. This signals continued confidence in post-pandemic tourism recovery and room-night demand within the Downtown Core. The street name itself translates to “bay water” in Malay, reflecting its historical connection to the waterfront before extensive land reclamation reshaped the coastline.
The plot, zoned for hotel use with a long-stay serviced apartments component, spans approximately 4,187.3 square metres and permits a maximum gross floor area of about 29,312 square metres.
Development parameters allow for a building height of up to 30 storeys, supporting high-rise, high-density hospitality development in the prime District 1 location. The site carries a gross plot ratio of 7.0, indicating the high development density permitted for this prime central location.
Thirty-storey height limits enable high-density hospitality development in Singapore’s prime District 1 precinct.
Industry estimates suggest the site could yield approximately 440 hotel rooms upon full GFA utilisation, with a minimum of 6,200 square metres safeguarded specifically for long-stay serviced apartments. This translates to roughly 135 such units within the project mix.
As a reserve list site, the Telok Ayer plot will proceed to tender only when a developer submits an acceptable minimum price application to the government.
This mechanism allows supply calibration based on market appetite.
The 99-year leasehold tenure planned for the development aligns with standard GLS commercial land offerings.
This announcement accompanied the concurrent release of three confirmed residential sites at Lentor Central, Kallang Close, and Dunearn Road, reflecting broader supply management across both residential and hospitality asset classes. The residential segment continues to benefit from substantial expansion of housing supply, with February 2025’s Sale of Balance Flats marking the largest release to date.
The site benefits from proximity to Telok Ayer MRT station on the Downtown Line, providing direct rail connectivity to the wider metropolitan area.
The immediate environment comprises conserved shophouses, temples, office buildings, and boutique hotels.
Established properties such as The Clan Hotel demonstrate successful upscale positioning within the same corridor.
The Telok Ayer and Chinatown belt functions as a heritage and tourism precinct with substantial food and beverage, nightlife, and cultural attractions driving leisure visitation.
Corporate and MICE demand from adjacent office clusters in Raffles Place and Tanjong Pagar further supports the commercial viability of hospitality developments in this location.
This positions the plot within an established micro-market serving both business travellers and leisure visitors.
