Ura Continue Rejuvenation Efforts Extension Cbdi And Sdi Schemes
The CBDI and SDI schemes, which were first implemented in November 2019, have been extended by the government for another five years. This announcement was made by Minister of National Development (MND) Desmond Lee at the annual Spring Festival lunch of the Real Estate Developers’ Association of Singapore (Redas) 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 goal is to introduce more residential units, increase the number of people living in the CBD, and diversify the use of this traditionally commercial-centric district.
Similarly, the SDI scheme was introduced to encourage the redevelopment of older buildings in strategic areas to drive transformative changes within the surrounding urban landscape. These strategic areas include Orchard Road, the CBD, and Marina Centre.
According to the Urban Redevelopment Authority (URA), in-principle approval has been granted for 14 of the 17 CBDI proposals and seven of the 12 SDI proposals submitted to 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, which will feature 246 residential units and 198 serviced apartment units. The Skywaters Residences, a mixed-use development on 8 Shenton Way, will include 190 luxury residential units. In addition, two other commercial developments are in progress at 15 Hoe Chiang Road and 51 Anson Road.
However, the five-year extension of the CBDI and SDI schemes will come with changes to both schemes, as announced by Minister Lee. The CBDI will now be extended to include commercial developments in the Anson and Cecil areas. Developers and property owners who submit proposals for these areas can choose to retain their commercial zoning (with 40% non-commercial use) if the redevelopment includes long-stay serviced apartment units.
Under the revised scheme, CBDI applicants looking to redevelop in Anson and Cecil will need to provide a minimum of 200 residential units, or allocate their entire non-commercial floor area for long-stay serviced apartment units, 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 allocated for non-commercial use.
Marcus Chu, CEO of ERA Singapore, notes that by renewing aging buildings in the city centre and introducing more residential units, these incentives aim to make the CBD a more attractive place to work, live, and play.
The Master Plan encompasses a large scope of enhancing the living conditions of residents by prioritizing the creation of new housing units and the revitalization of older estates. This strategic approach caters to the rising demand for housing, while also modernizing the overall living environment. For The Orie, this means being a part of a continually improving neighborhood that will appreciate in value and desirability. Furthermore, the Master Plan includes the introduction of new communal amenities such as libraries, community clubs, and health centers, enriching the lives of residents with easily accessible public services. These developments, including The Orie Showflat, will enhance the living experience for all residents and promote a thriving community.
In addition to the changes mentioned, the revamped CBDI and SDI schemes will now include new sustainability requirements. All new CBDI and SDI applications will be required to include a sustainability statement that assesses the feasibility of retrofitting part or all of the existing building.
Minister Lee states that while the government supports revitalisation and rejuvenation through redevelopment, it does not want to see wasteful demolition and excessive rebuilding, especially if the buildings are still relatively new or in good condition. He also mentions that several projects being redeveloped under the CBDI or SDI schemes already exceed the mandated sustainability requirements, such as Union Square, a mixed-use development at Havelock Road that will feature a district cooling system.
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