The government has officially announced the extension of the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes for another five years. These schemes were initially introduced by the government in November 2019 and have now been extended 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 aims to encourage the conversion of older office buildings in specific areas of the Central Business District (CBD) into mixed-use developments. These areas include Tanjong Pagar, Robinson Road, and Shenton Way. The scheme intends to increase the number of homes in the CBD, enhance the live-in population, and introduce a greater diversity of uses in the traditionally business-focused district.
On the other hand, the SDI scheme was introduced to promote the redevelopment of older developments in strategic areas to enhance transformative changes in the surrounding urban environment. These strategic areas include Orchard Road, the Central Business District, and Marina Centre.
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According to the Urban Redevelopment Authority (URA), out of the 17 CBDI proposals and 12 SDI proposals submitted to the government, 14 CBDI proposals and seven SDI proposals have been granted in-principle approval.
Four CBDI projects in the Anson-Tanjong Pagar area are currently under construction. These include Newport Plaza, a mixed-use development located at 80 Anson Road, which consists of 246 residential units and 198 serviced apartment units. Another project, The Skywaters Residences, comprises 190 luxury residential units as part of a larger mixed-use development located at 8 Shenton Way. Other CBD projects include two commercial developments at 15 Hoe Chiang Road and 51 Anson Road.
In addition, Minister Lee has announced that the five-year extension of the CBDI and SDI schemes will come with refinements for both schemes. The CBDI scheme will now be extended to include commercial developments in Anson and Cecil, and developers and property owners will have the option to retain their commercial zoning (with 40% non-commercial use) if the redevelopment includes long-stay serviced apartment units.
According to URA, CBDI applicants who wish 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 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 dedicated to non-commercial use.
Marcus Chu, CEO of ERA Singapore, has noted that “By enabling the continual renewal of the many aging buildings in the city centre, and with the injection of 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 moving forward will be required to include a sustainability statement assessing the feasibility of retrofitting part or all of the existing building.
Minister Lee has mentioned that while the government supports revitalization and rejuvenation through redevelopment, they do not want to see wasteful demolition and excessive rebuilding, especially if the buildings are relatively young or still in good condition. He also adds that several projects currently being redeveloped under the CBDI or SDI schemes are going beyond the mandated sustainability requirements, such as Union Square, a mixed-use development located at Havelock Road, which will include a district cooling system.
In conclusion, the government’s decision to extend the CBDI and SDI schemes for another five years aims to promote the continual renewal of aging buildings and create a more vibrant and sustainable CBD. Interested parties can check out the latest listings and available units for the Skywaters Residences and other upcoming new launch projects, as well as the recent sale transactions for condos in District 1.