Ageing buildings in Singapore’s business district get a lifeline
- The incentive scheme will offer the buildings’ owners a higher plot ratio, meaning they can include more units in their new developments
A scheme aimed at rejuvenating Singapore’s central business district by encouraging the conversion of older office buildings into mixed-use developments is to be rolled out.
The incentive scheme, which applies to the areas around Anson Road, Cecil Street, Robinson Road, Shenton Way and Tanjong Pagar, will offer the buildings’ owners a higher plot ratio, meaning they can include more units in their new developments.
“These buildings’ owners will be motivated to explore the possibilities of triggering the bonus plot ratio or to put up their properties for sale with a bonus plot ratio scheme,” said Moray Armstrong, managing director of CBRE Singapore.
“However, the new use will need to be either hotel or residential. These buildings still currently enjoy relatively high occupancies, limiting the need for any huge capital expenditure and revenue downtime for redevelopment.”
He estimates that about 20 buildings in the central business area could qualify for the incentive.
To qualify for the rejuvenation scheme buildings have to be at least 20 years old from the last date of their temporary occupation permit and the existing use must be predominantly office space.
For a site in the Anson Road and Cecil Street area to be redeveloped for hotel use, or mixed-use with residential and commercial components, the uplift in gross plot ratio will be 25 per cent. For residential buildings with commercial space on the first level, the new development will enjoy an increase in plot ratio of up to 30 per cent.
Two new schemes – namely the “central business district incentive scheme” and the “strategic development incentive scheme” were unveiled on March 27 as part of the Draft Master Plan 2019.
“The old stretches of Shenton Way and Cecil Street have greatly contributed to Singapore’s growth as the pioneer central business district,” said Armstrong. “The emergence of the new economy and downtown central business district has resulted in these sub-markets being less favoured and to some, even being functionally obsolete.
“The two schemes allow for the existing developments to extend their use beyond office operation hours.”
He described the schemes as “long-term plans deemed to provide a lifeline to ageing developments”.
“The incentive of a higher plot ratio is to promote private sector-led urban regeneration in the middle to long term,” he added. “However, any knee-jerk reaction will be curbed by the strict qualification rules behind each scheme as well as market sentiments.”
