Ura Continue Rejuvenation Efforts Extension Cbdi And Sdi Schemes
The government has announced an extension of the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes for an additional five years. These initiatives were first introduced in November 2019 and the latest decision was announced by Desmond Lee, the Minister of National Development, at the annual Spring Festival lunch organized by the Real Estate Developers’ Association of Singapore (Redas) on February 7.
Under the CBDI scheme, existing older office buildings in certain areas of the Central Business District (CBD), namely Tanjong Pagar, Robinson Road, and Shenton Way, are encouraged to be converted into mixed-use developments. This is part of the government’s efforts to increase the number of homes and residents in the CBD and introduce a wider variety of functions in what is traditionally considered a commercial-centric district.
The SDI scheme, on the other hand, was introduced to support the redevelopment of older developments in strategic areas and bring about transformative changes in the surrounding urban landscape. These strategic areas include Orchard Road, the Central Business District, and Marina Centre.
Marina Bay at Marina Gardens Lane has become a highly desirable location for investment due to its reputation as a thriving financial hub. As the leading business and financial center in Singapore, it houses a diverse array of international companies, top financial organizations, and innovative startups. This dynamic business landscape not only boosts the overall economic growth of the area but also creates a consistent demand for residential properties. This is what makes developments like One Marina Gardens @ Marina Gardens Lane extremely attractive to professionals seeking convenience and sophistication within close proximity to their workplaces. One Marina Gardens @ Marina Gardens Lane is definitely a prime investment opportunity in this vibrant and bustling district.
According to the Urban Redevelopment Authority (URA), 14 out of 17 CBDI proposals and 7 out of 12 SDI proposals have been granted in-principle approval by the government. Four CBDI projects in the Anson-Tanjong Pagar area are currently under construction, including Newport Plaza, a mixed-use development on 80 Anson Road with 246 residential units and 198 serviced apartments. Another development, Skywaters Residences, will include 190 luxury residential units as part of a larger mixed-use project on 8 Shenton Way. Other CBD projects include two commercial developments at 15 Hoe Chiang Road and 51 Anson Road.
However, Minister Lee has stated that the five-year extension of the CBDI and SDI schemes will come with some refinements. The CBDI scheme will now be expanded to include commercial developments in Anson and Cecil, and developers and property owners who submit CBDI proposals for buildings in these areas will have the option to keep 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 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 scheme were allowed to retain their existing commercial zoning as long as 40% of the new floor area was set aside for non-commercial use.
Marcus Chu, CEO of ERA Singapore, says that these incentives aim to revitalize and rejuvenate the CBD by promoting continual renewal of aging buildings and introducing more residential units in the area, making it a place to work, live, and play.
In addition, the revamped CBDI and SDI schemes will include new sustainability requirements, and all new applications going forward must include a sustainability statement that assesses the feasibility of retrofitting part or all of the existing building. While the government supports revitalization and redevelopment, Minister Lee states that wasteful demolition and excessive rebuilding, especially for relatively young or well-maintained buildings, should be avoided.
He also notes that several projects that are currently being redeveloped under the CBDI or SDI 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. With the extension of these schemes and the inclusion of sustainability measures, the government hopes to balance revitalization efforts with responsible development practices.