City Plaza Owners Launch Third Collective Sale Attempt at S$970 Million

Third Time on the Market

Owners of City Plaza, a freehold mixed development in Singapore's Geylang district, have launched their third collective sale attempt with a guide price of S$970 million. The 13,146-square-meter site, built in the 1970s and currently home to 66 apartments and 384 strata retail units, represents one of the remaining large-scale redevelopment opportunities in the Paya Lebar Central area.

The complex has faced two prior unsuccessful sale attempts. In 2018, owners sought S$1.05 billion but secured only 53 percent support, well short of the 80 percent threshold required under Singapore's collective sale legislation. A second attempt in 2021 at the current S$970 million reserve price came agonizingly close, garnering 79.3 percent support but falling just short of the required consent level.

Residential Conversion Potential

Under the 2025 Master Plan, City Plaza remains zoned for commercial use with a gross plot ratio of three. However, the site can be redeveloped into a residential-led mixed-use development with commercial uses on the ground floor, subject to planning and statutory approvals, according to marketing agent Huttons.

An outline planning advice was obtained from the Urban Redevelopment Authority on July 9, 2026, following approximately five months of engagement with the authority and other government agencies. The outline application, which tests proposed land use, plot ratio, and building height, remains valid for six months.

The land betterment charge will vary significantly depending on the final redevelopment concept. Huttons Asia head of investment sales Terence Lian indicated that a full commercial redevelopment could incur an LBC of approximately S$15 million, while a residential scheme with ground-floor commercial space might push the figure to around S$158 million. These estimates remain indicative and subject to final development plans and regulatory assessment.

No ABSD Under Current Zoning

A key selling point for potential buyers is the absence of additional buyer's stamp duty on the acquisition, based on the property's current commercial zoning. Singapore's ABSD regime, which imposes significant levies on residential property purchases by foreign entities and corporate buyers, does not apply to commercial transactions under current regulations.

Lian described City Plaza as one of the final major redevelopment opportunities within Paya Lebar Central, noting that the combination of no ABSD liability and substantial planning work already completed with authorities creates an investment proposition increasingly rare in Singapore's tightly regulated property market.

Strategic Location and Neighborhood Context

City Plaza sits adjacent to Paya Lebar MRT station and faces Kinex shopping mall, which The Elegant Group acquired from UOL in September 2025 for S$375 million. The complex is within walking distance of Paya Lebar Quarter and SingPost Centre, positioning it in a transport hub undergoing significant commercial and residential transformation.

The Elegant Group, linked to Chinese businessman Zhao Zhichao, is also redeveloping Tanjong Katong Complex nearby. The group's Singapore portfolio includes The Clementi Mall, acquired from Cuscaden Peak for S$809 million in December 2024, along with Grantral Mall at Clementi, Grantral Mall at Macpherson, and Changi City Point.

Built by City Developments Ltd, City Plaza has long been known for its wholesale shops, particularly clothing retailers. The tender closes on October 13, 2026.

Shifting Dynamics in Collective Sales

The near-miss in 2021 highlights the challenges of collective sales in Singapore, where achieving 80 percent owner consensus across hundreds of strata-titled units requires navigating diverse financial expectations and emotional attachments. The 79.3 percent support level suggests broad owner appetite for monetizing aging assets, but even a handful of holdouts can derail billion-dollar transactions.

The current attempt benefits from several tailwinds: a lower reserve price than the initial 2018 effort, advanced planning approvals that reduce buyer uncertainty, and the absence of ABSD that makes the site accessible to a broader range of institutional and foreign capital. Whether these factors prove sufficient to push consent over the 80 percent threshold will become clear when the tender closes in October.