Ura Continue Rejuvenation Efforts Extension Cbdi And Sdi Schemes
The extension of the Central Business District Incentive (CBDI) and Strategic Development Incentive (SDI) schemes have been announced by the government for a period of five years. These schemes were initially launched in November 2019 and the decision to extend them was made by Desmond Lee, Minister of National Development (MND) at the Real Estate Developers’ Association of Singapore (Redas) annual Spring Festival lunch on Feb 7.
The CBDI scheme encourages the conversion of older office buildings in certain areas of the Central Business District (CBD) into mixed-use developments. These areas include Tanjong Pagar, Robinson Road, and Shenton Way. The aim of the scheme is to increase the number of homes, enhance the population living in the CBD, and introduce a greater variety of uses in this traditionally commercial-centric district.
The SDI scheme, on the other hand, was introduced to promote 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.
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 – Newport Plaza, a mixed-use development on 80 Anson Road which comprises of 246 residential units and 198 serviced apartment units, as well as The Skywaters Residences, which comprises 190 luxury residential units as part of a larger mixed-use development on 8 Shenton Way. Other CBD projects include two commercial developments at 15 Hoe Chiang Road and 51 Anson Road.
Minister Lee stated that the five-year extension of the CBDI and SDI schemes will come with improvements to both schemes. For instance, the CBDI scope has been extended to include commercial developments in Anson and Cecil, giving developers and property owners the option to retain their commercial zoning (with 40% non-commercial use) if they include long-stay serviced apartment units in the redevelopment.
Under the new requirements, CBDI applicants looking to redevelop in Anson and Cecil will have to provide a minimum of 200 residential units or allocate their entire non-commercial floor area for long-stay serviced apartment use, whichever is lower. Previously, office buildings redeveloped under the CBDI scheme were allowed to retain their existing commercial zoning if 40% of the new floor area was allocated for non-commercial use.
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Marcus Chu, CEO of ERA Singapore, states that these incentives aim to renew the aging buildings in the city center and introduce more residential units, making the CBD a place to work, live and play.
The revamped CBDI and SDI schemes will also include new sustainability requirements, with all future CBDI and SDI applications required to include a sustainability statement that assesses the feasibility of retrofitting part or all of the existing building. Minister Lee emphasized the importance of revitalizing and rejuvenating buildings through redevelopment, rather than engaging in wasteful demolition and excessive rebuilding, particularly for relatively young or well-maintained buildings.
Several projects that are currently being redeveloped under the CBDI and SDI schemes are already surpassing the mandated sustainability requirements. For instance, Union Square, a mixed-use development on Havelock Road, is incorporating a district cooling system.
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