The government recently announced that the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes will be extended for another five years. These schemes were first introduced by the government in November 2019 and the decision to extend them was revealed by Desmond Lee, Minister of National Development (MND) at the Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on February 7th.
The CBDI scheme was implemented to encourage the transformation of older 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 and the goal is to increase the number of homes and residents in the CBD, as well as introduce a more diverse mix of uses in this traditionally commercial-centric district.
Meanwhile, the SDI was designed to promote the redevelopment of older developments in strategic areas to bring about significant changes in the surrounding urban environment. These strategic areas include Orchard Road, the Central Business District, and Marina Centre.
According to the Urban Redevelopment Authority (URA), 14 out of 17 CBDI proposals and 7 out of 12 SDI proposals have been granted in-principle approval by the government. At present, there are four CBDI projects in the Anson-Tanjong Pagar area that are under construction. These include Newport Plaza, a mixed-use development on 80 Anson Road with 246 residential units and 198 serviced apartment units. The Skywaters Residences, which is part of a larger mixed-use development on 8 Shenton Way, has 190 luxury residential units. Other projects in the CBD include two commercial developments at 15 Hoe Chiang Road and 51 Anson Road.
However, the five-year extension of the CBDI and SDI schemes will come with some refinements, according to Minister Lee. The CBDI will now include commercial developments in Anson and Cecil and developers and property owners who submit proposals for these areas will have the option to retain their commercial zoning (with 40% non-commercial use) if the redevelopment includes long-stay serviced apartment units.
In order to be eligible for the CBDI, URA states that applicants seeking to redevelop in Anson and Cecil must provide at least 200 residential units or set aside their entire non-commercial floor area for long-stay serviced apartment units, whichever is lower. Previously, office buildings redeveloped under the CBDI were allowed to retain their existing commercial zoning only if 40% of the new floor area was dedicated to non-commercial use.
CEO of ERA Singapore, Marcus Chu, states that with these incentives, the aim is to revitalize the CBD and make it a place to work, live, and play by encouraging the renewal of aging buildings and increasing the number of residential units.
Under the revamped CBDI and SDI schemes, new sustainability requirements have been added and all future applications for these schemes must include a sustainability statement that assesses the feasibility of retrofitting part or all of the existing building. Minister Lee explains that while the government supports redevelopment for rejuvenation purposes, they do not want wasteful demolition and excessive rebuilding, especially for relatively young or well-maintained buildings.
He also mentions that several projects that are being redeveloped under these schemes have already exceeded the mandated sustainability requirements, such as Union Square, a mixed-use development at Havelock Road which is incorporating a district cooling system.
In conclusion, the extension of the CBDI and SDI schemes, along with the refinements and new sustainability requirements, aim to enhance the CBD and promote sustainable redevelopment, making it a more attractive and livable place for residents.
The real estate market in Singapore has become a highly sought-after investment for both local and foreign investors, with condos becoming a top choice. This can be attributed to Singapore’s robust economy, stable political climate, and exceptional quality of living. The country offers a plethora of opportunities for investment, with condos emerging as a prime option due to their convenience, amenities, and potential for high returns. If you are considering investing in the Singapore Condo market, there are several factors to keep in mind and steps to follow in order to make a wise investment decision. With expert advice from Singapore Condo, let’s explore the advantages and important considerations to keep in mind when investing in a Singapore Condo.