The CBD Incentive Scheme is being launched to revamp our aging Central Business District. Despite being the “most developed part of Singapore today“, here’s what else we can expect from it:
The CBD Incentive Scheme was introduced two days ago. It is part of the draft Master Plan 2019. Here’s what the plan is showing:
Redeveloped CBD offices
Some older CBD offices can now be converted into other forms commercial real estate (e.g. hotels and shops), with a higher gross plot ratio. The scheme targets older offices in areas such as Anson Road, Cecil Street, Shenton Way, Robinson Road, and Tanjong Pagar.
Some potential candidates are:Â
- Fuji Xerox Towers
- CDL’s City House
- Hong Leong Holdings’ Anson Centre
- 80 Robinson Road
Eligible buildings must be over 20 years old, without significant asset enhancements from the last TOP date. Its site area is also a qualifying criterion.
The increase in plot ratio is capped at 25 per cent. But for a mix of residential and commercial use in the first storey, the ratio is capped at 30 per cent instead.
CBD Incentive Scheme will turn obsolete office stock to prime real estate
Cushman & Wakefield says, “The new scheme opens up more redevelopment options, especially for non-performing obsolete office stock.”
Owners can expect the greater flexibility to attract a rise in en bloc sales. It opens them to a bigger pool of potential buyers like residential and hotel developers.Â
However, market watchers note that the unsteady economy, and lack of expertise in hotel management, may deter some owners from redeveloping their properties in the CBD.
Another key beneficiary of the move are retail and dining businesses in the area. Such businesses have long complained that the CBD is “dead town” during the weekends, despite the high rental sums they incur. By introducing a mix of different property types – particularly hotels – the CBD can remain lively even on non-work days.
Looking for the ideal listing site for your clients? Reach out to home buyers and investors on Singapore’s largest property portal, 99.co!Â
You can also access a wide range of tools to calculate your down payments and loan repayments, to make an informed purchase.
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Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
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