The government has made an important announcement regarding the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes. These schemes, first introduced in November 2019, have been extended for the next five years. Minister of National Development (MND), Desmond Lee, shared the news at the recent Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on Feb 7th.
The CBDI scheme aims to promote the conversion 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. The goal is to increase the number of homes, improve the resident population in the CBD, and introduce a diverse range of uses in the predominantly commercial district.
The SDI was introduced to encourage the redevelopment of older developments in strategic areas, ultimately leading to positive changes in the surrounding urban landscape. The designated areas are 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-principal approval by the government. Currently, four CBDI projects are under construction in the Anson-Tanjong Pagar area, including Newport Plaza, a mixed-use development on 80 Anson Road. This project will feature the Newport Residences (246 residential units) and 198 serviced apartments. Another development, Skywaters Residences, will offer 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.
Minister Lee has announced that the five-year extension of the CBDI and SDI schemes will bring refinements to both schemes. The CBDI will be expanded to include commercial developments in Anson and Cecil, giving developers and property owners the option to retain their commercial zoning (with 40% non-commercial use) if they include long-stay serviced apartments in their redevelopment plans.
However, URA states that CBDI applicants looking to redevelop in Anson and Cecil must provide a minimum of 200 residential units or dedicate their entire non-commercial floor area to long-stay serviced apartments, whichever is lower. Previously, office buildings redeveloped under the CBDI were allowed to maintain their existing commercial zoning if 40% of the new floor area was used for non-commercial purposes.
:
Investing in a condo in Singapore offers numerous advantages, with one of the most significant being the potential for capital appreciation. As a thriving global business hub with a robust economy, Singapore has a constant demand for real estate. Over time, property prices in the country have consistently risen, particularly in prime locations where condos are highly sought after. Those who invest in the market at the opportune time and hold onto their properties for an extended period can reap considerable profits from their condo investments.
“This extension of the CBDI and SDI schemes will enable the continuous renewal of aging buildings in the city center and increase the number of residential units, making the CBD a more vibrant place to work, live and play,” says Marcus Chu, CEO of ERA Singapore.
In addition, the revamped schemes will include new sustainability requirements, and all future CBDI and SDI applications must include a sustainability statement that considers the feasibility of retrofitting part or all of the existing building.
Minister Lee explains, “While we support revitalization and rejuvenation through redevelopment, we do not want wasteful demolition and excessive rebuilding, especially if the buildings are relatively new or in good condition.” He adds that several ongoing projects that are being redeveloped under these schemes have already exceeded the basic sustainability requirements, such as Union Square, a mixed-use development on Havelock Road, which will incorporate a district cooling system.
In conclusion, the extension and improvements to the CBDI and SDI schemes will encourage sustainable development in the designated areas and contribute to the continual revitalization of the CBD. Interested buyers can check out the latest listings for properties in Skywaters Residences and other upcoming new launch projects.