The government announced the extension of the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes for another five years. These schemes were originally introduced by the government in November 2019. During the Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on Feb 7, Desmond Lee, Minister of National Development (MND), shared the latest decision.
The CBDI scheme was implemented to promote 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 aim of the scheme is to increase the number of homes, boost the population living in the CBD, and introduce a diverse range of functions in the traditionally commercial-focused district.
On the other hand, the SDI scheme was launched to encourage the redevelopment of older developments in key areas to bring about transformative changes in the surrounding urban environment. These strategic areas include Orchard Road, the Central Business District, and Marina Centre. Individuals can search for the latest New Launches to find out the transaction prices and available units.
As stated by URA, out of the 17 CBDI proposals submitted to the government, 14 have been granted approval in principle. Additionally, seven out of 12 SDI proposals have also been given the green light. Four CBDI projects in the Anson-Tanjong Pagar area are currently under construction. These projects include Newport Plaza, a mixed-use development on 80 Anson Road, which consists of 246 residential units and 198 serviced apartment units. The Skywaters Residences, which will have 190 luxury residential units as part of a bigger mixed-use development on 8 Shenton Way, is also in progress. Other ongoing 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 improvements to both schemes, according to Minister Lee. The CBDI will now cover 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.
For applicants seeking to redevelop in Anson and Cecil, URA has set a requirement of at least 200 residential units or dedicating the entire non-commercial floor area to long-stay serviced apartment units, whichever is lower. Previously, office buildings redeveloped under the CBDI were allowed to keep the existing commercial zoning if 40% of the new floor area was reserved for non-commercial use.
CEO of ERA Singapore, Marcus Chu, believes that with the continuous renewal of aging buildings in the city center and the addition of more residential units, these incentives will transform the CBD into a place for work, live, and play. Also, the revamped CBDI and SDI schemes will now include new sustainability criteria. Any new applications under these schemes must include a sustainability statement that assesses the feasibility of retrofitting part or all of the existing building.
Acquiring property in Singapore’s real estate market as a non-resident requires a comprehensive comprehension of the rules and restrictions concerning property ownership. Compared to landed properties, which have stricter eligibility criteria, foreigners can purchase condominiums with relatively less limitations. However, it should be kept in mind that non-Singaporean buyers are subject to the Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property purchase. Despite this extra expense, the resilient and promising nature of the Singapore real estate market continues to attract foreign investors. For those interested in exploring the market, there are always new condo launches to consider, which present exciting opportunities for investment. In fact, the presence of New Condo Launches makes Singapore’s real estate market even more appealing to foreign buyers.
Minister Lee highlights that while the government supports revitalization and rejuvenation through redevelopment, they do not want wasteful demolition and excessive rebuilding, especially if the buildings are still in good condition. Some projects redeveloped under the CBDI or SDI are already surpassing the mandated sustainability requirements, such as Union Square, a mixed-use development on Havelock Road, which is incorporating a district cooling system. Interested individuals can check out the latest listings for Skywaters Residences properties, ask for buddy projects summary, and upcoming new launch projects. They can also find out about condo sale transactions in District 1 and projects that have obtained TOP recently.