About 500 dwellings could be built on the site from 2026, according to the sales pitch, while office and hotel uses are also permitted.

Located across from QT Canberra hotel, block 1 section 121 City spans almost 19,000 square metres with frontages to London and Vernon Circuits and Commonwealth Avenue.

The vacant plot previously formed the north-west cloverleaf ramp until it was permanently closed last year for the raising of London Circuit, part of the light rail extension.

The ACT government's City Renewal Authority is selling the land via an international expressions of interest campaign.

City Renewal Authority acting CEO Craig Gillman said the land release had been on the government's program for a number of years, however the recent road closure had prompted the launch.

He described the land release as an "exceptionally rare offering" for developers.

"Having an almost greenfield site with such perfect location is really, really rare," Mr Gillman.

Allowable uses for the site include residential, with capacity for about 500 dwellings and a requirement for affordable housing.

"We've got a relatively significant affordable quota that we're looking for out of this block and that could be community housing, affordable housing or it could be an equivalent, affordable build-to-rent offering," Mr Gillman said.

There are also options to build a hotel, commercial offices and retail on the site.

The block's location on the "doorstep" of a future light rail stop was a key feature, Mr Gillman said.

Following the completion of a sale, construction of the future development is anticipated to start from 2026.

Commercial agency JLL has been engaged to manage the sales campaign, which will target local, interstate and international developers.

While a price guide has not been disclosed, a look at previous government land releases gives some indication of where the price might land.

A 16,303-square-metre block on Northbourne Avenue in Turner sold at auction in 2022 for $59.3 million.

The City Renewal Authority is in the process of finalising the sale of block 40 section 100 City, an 11,380-square-metre plot that will be developed into an 11-storey office block.

The authority would not confirm a sale price as the transaction had not been finalised, however sources indicate it was likely between $60 million and $65 million.

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Mr Gillman said a "two-stage sale process" would help determine a price expectation for block 1 section 121.

The first stage is the expressions of interest request, which closes on July 4.

"Price will be really considered in the second stage," he said.

"We will have an independent valuation as is required by the Act to sell land and certainly we're very confident that the two-stage process will lead to excellent value for money for the territory."

JLL managing director, ACT Tim Mutton said the sale process would "ensure a sustainable and high-quality development fitting of its significant city centre location".

"Block 1 section 121 City provides an outstanding opportunity for developers to acquire a permit-approved development site with endless potential and represents a true opportunity to shape the future of Canberra CBD," he said.

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