The government has announced that it will be extending the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes for another five years. These schemes were initially introduced in November 2019 and the latest decision was revealed by Desmond Lee, the Minister of National Development (MND) at the Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on Feb 7.
The CBDI scheme was implemented to promote the conversion of old office buildings in certain areas of the Central Business District (CBD) into mixed-use developments. These areas include Tanjong Pagar, Robinson Road, and Shenton Way. The purpose of this scheme is to increase the number of homes, improve the residential population in the CBD, and introduce a more diverse mix of uses in the traditionally commercial-centered district.
On the other hand, the SDI was introduced to encourage the redevelopment of older buildings in strategic areas in order to bring about transformative changes in the surrounding urban environment. These strategic areas include Orchard Road, the Central Business District, and Marina Centre.
As reported by the Urban Redevelopment Authority (URA), out of the 17 proposals submitted under the CBDI scheme, 14 have received in-principle approval. For the SDI scheme, seven out of 12 proposals have also been granted approval by the government.
Currently, there are four CBDI projects under construction in the Anson-Tanjong Pagar area. These include Newport Plaza, a mixed-use development on 80 Anson Road, which comprises of 246 residential units and 198 serviced apartment units. Another project, Skywaters Residences, comprises of 190 luxury residential units as part of a larger mixed-use development on 8 Shenton Way. Other projects in the CBD include two commercial developments on 15 Hoe Chiang Road and 51 Anson Road.
However, the five-year extension of the CBDI and SDI schemes will come with some revisions, according to Minister Lee. Under this extension, the CBDI scheme will be expanded to include commercial developments in Anson and Cecil. Developers and property owners who submit proposals for buildings in these areas will have the flexibility to retain their commercial zoning (with 40% non-commercial use) if their redevelopment plans include long-stay serviced apartments.
The URA has stated that CBDI applicants who intend to redevelop in Anson and Cecil will need to provide a minimum of 200 residential units, or set aside their entire non-commercial floor area for long-stay serviced apartments, whichever is lower. Previously, office buildings redeveloped under the CBDI were allowed to keep their existing commercial zoning if 40% of the new floor area was allocated for non-commercial use.
Marcus Chu, the CEO of ERA Singapore, said, “By facilitating the continuous rejuvenation of the many aging buildings in the city center and by bringing in more residential units, these incentives aim to make the CBD a more vibrant and diverse place to work, live and play.”
Additionally, the revamped CBDI and SDI schemes will include new sustainability requirements. As a result, all new applications for these schemes must now include a sustainability statement that evaluates the feasibility of retrofitting part, or all, of the existing building.
Minister Lee also mentioned that while they support revitalization and rejuvenation through redevelopment, they do not want to see excessive demolition and building reconstruction, especially if the buildings are still relatively new or in good condition. Some projects that are currently being redeveloped under these schemes have already gone beyond the required sustainability standards. For instance, Union Square, a mixed-use development on Havelock Road, is incorporating a district cooling system.
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For those interested, you can now check out the latest listings for Skywaters Residences properties and ask for more details from Buddy. You can also find out the transaction prices and available units for new launches and sale transactions in District 1. Furthermore, you can also find out more about the latest projects that have recently obtained their Temporary Occupation Permit (TOP).