Ura Continue Rejuvenation Efforts Extension Cbdi And Sdi Schemes
The Singapore government announced that the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes will be extended for another five years. Originally introduced in November 2019, the decision was made public by Desmond Lee, Minister of National Development (MND), during the Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on February 7.
The CBDI scheme encourages the transformation 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 goal of the scheme is to increase the number of homes, boost the residential population in the CBD, and introduce a more diverse mix of uses in the traditionally commercial-centric district.
The SDI was introduced to encourage the redevelopment of older developments in strategic areas to bring about transformative changes in the surrounding urban environment. The strategic areas include Orchard Road, the Central Business District, and Marina Centre.
Currently, 14 out of 17 CBDI proposals and seven out of 12 SDI proposals have been granted in-principle approval by the government, according to the Urban Redevelopment Authority (URA). Four CBDI projects in the Anson-Tanjong Pagar area are currently under construction. These include the mixed-use development Newport Plaza on 80 Anson Road, which comprises of the 246-unit Newport Residences and 198 serviced apartment units. Another project, Skywaters Residences, will have 190 luxury residential units as part of a larger mixed-use development on 8 Shenton Way. There are also two commercial developments underway at 15 Hoe Chiang Road and 51 Anson Road.
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Minister Lee stated that the five-year extension of the CBDI and SDI schemes will come with improvements to both schemes. The CBDI will now include commercial developments in Anson and Cecil, and developers and property owners who submit CBDI proposals for buildings in these areas can choose to keep their commercial zoning if the redevelopment includes long-stay serviced apartment units.
To qualify, CBDI applicants looking to redevelop in Anson and Cecil must provide at least 200 residential units or allocate their entire non-commercial floor area for long-stay serviced apartments, whichever is lower. Previously, office buildings redeveloped under the CBDI were allowed to keep their existing commercial zoning if 40% of the new floor area was used for non-commercial purposes.
ERA Singapore CEO, Marcus Chu, says, “By facilitating the continuous renewal of the many aging buildings in the city center and with the addition of more residential units, these incentives aim to make the CBD a place to work, live and play.”
Furthermore, the revised CBDI and SDI schemes will include new sustainability requirements. Moving forward, all new CBDI and SDI applications must include a sustainability statement that assesses the feasibility of retrofitting part, or all, of the existing building.
Minister Lee adds, “We support revitalization and rejuvenation through redevelopment. However, we do not want to see unnecessary demolition and excessive rebuilding, especially if the buildings are still in good shape or relatively young.” He also mentions that several projects being redeveloped under the CBDI or SDI schemes are already going beyond the required sustainability standards. For instance, Union Square, a mixed-use development on Havelock Road, is incorporating a district cooling system.
