The government has announced the extension of the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes for another five years. These schemes were first introduced in November 2019 and the decision to extend them was revealed by Desmond Lee, Minister of National Development, at the Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on Feb 7.
The CBDI scheme aims to encourage 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 bring more homes into the CBD, increase the population living in the area, and introduce a greater mix of uses in this traditionally commercial-centric district.
On the other hand, the SDI was introduced to promote the redevelopment of older developments in strategic areas, to bring about transformative changes within 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-principal approval.
Currently, four CBDI projects in the Anson-Tanjong Pagar area are under construction, including Newport Plaza, a mixed-use development on 80 Anson Road, which consists of the 246-unit Newport Residences and 198 serviced apartments. Another project, Skywaters Residences, includes 190 luxury residential units within a larger mixed-use development on 8 Shenton Way. Other CBD projects include two commercial developments at 15 Hoe Chiang Road and 51 Anson Road.
Minister Lee has stated that the five-year extension of these schemes will come with some refinements. The CBDI scheme will now be extended to include commercial developments in Anson and Cecil, and developers and property owners submitting proposals for buildings in 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.
Under the new requirements, CBDI applicants looking to redevelop in Anson and Cecil will need to provide at least 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 retain their existing commercial zoning if 40% of the new floor area was used for non-commercial purposes.
Marcus Chu, CEO of ERA Singapore, says, “By allowing for the continual renewal of aging buildings in the city centre and introducing more residential units, these incentives aim to make the CBD a place to work, live, and play.”
Additionally, the revamped CBDI and SDI schemes will include new sustainability requirements. All new CBDI and SDI applications will be required to include a sustainability statement that assesses the feasibility of retrofitting part or all of the existing building.
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Minister Lee explains, “While we support revitalisation and rejuvenation through redevelopment, we do not want wasteful demolition and excessive rebuilding, especially if the buildings are relatively young or still in good shape.” He adds that several projects currently being redeveloped under these schemes are already exceeding the mandated sustainability requirements, such as Union Square, a mixed-use development at Havelock Road, which is incorporating a district cooling system.