RES exam question on Planning & Development: Reserve Price against which Sunrise's minimum price is evaluated
Sunrise Land applies to trigger a Reserve List site of 1.2 hectares, zoned Residential at a plot ratio of 3.0, and indicates a minimum price of $400 million. The Chief Valuer independently puts the site's Estimated Market Value at $480 million. What is the Reserve Price against which Sunrise's minimum price is evaluated?
- A$480 million
- B$400 million
- C$432 million
- D$408 million
Show answer & explanation
Answer
D. $408 million
Explanation
Answer: $408 million. The Reserve Price is 85% of the Chief Valuer's Estimated Market Value.Working:1. 85% x $480 million = $408 millionWatch out: The site area and plot ratio are not part of the calculation.Rule: An applicant's minimum price is evaluated against the Reserve Price, which is 85% of the Chief Valuer's Estimated Market Value. The Chief Valuer sets that value independently, without knowing the applicant's figure, and both envelopes are opened together.Source: URA, FAQ on Application for Reserve List Sites (last updated 6 August 2026)
Why the other options are wrong
- $480 million: This is the un-discounted Estimated Market Value, not the Reserve Price.
- $400 million: This is Sunrise's own minimum price, which is being evaluated, not the benchmark.
- $432 million: This uses 90% instead of 85%.
Study the concept behind this question: Planning & Development Control: URA Master Plan, Zoning, GFA
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