URA’s Strategic Development Incentive scheme received nine applications, of which six were supported.
to City Developments . Analysts say this could pick up pace as the recovery in Singapore’s tourism sector gains momentum and several major redevelopment projects in the prime retail belt get under way.
To date, the SDI scheme – which was introduced in 2019 to encourage the redevelopment of older buildings into more productive mixed-use developments – has received nine applications, of which six have been supported, said URA. Under the SDI scheme, developers can increase their GFA if they have proposals that transform and rejuvenate the precinct.
“Together, these redevelopments could transform this relatively sleepy and eclectic stretch of Orchard Road into a more vibrant, energetic destination,” Ms He said. He noted that while CDL also owns Palais Renaissance, it is not directly adjacent to the three buildings, and hence would likely not qualify for SDI enhancements.CDL has already successfully tapped the scheme – it received written approval in March 2024 to redevelop the site of the former Central Square and Central Mall in Clarke Quay into Union Square, a mixed-use development with a hotel, office and retail space, and a 366-unit condominium.
Real estate consultancy Cistri’s regional director Jack Backen noted that “the Government has limited levers to pull when it comes to Orchard Road as many existing developments are in private hands, and redevelopment is subject to market cycles”. Industry observers noted that URA had approved HPL’s redevelopment proposal in August 2023, a month before the deal to sell Far East Shopping Centre to Mr Du was struck. For a joint redevelopment proposal between Glory and HPL to take place, “HPL would probably have had to negotiate commercial terms with Glory, redesign their proposal and submit a fresh application under the SDI scheme to URA”, a source familiar with the deal said, weighing in on why such a tie-up did not happen.
“Historically, about a third of retail sales in Orchard Road came from tourists. As we are not yet back to pre-pandemic tourist numbers, it is unsurprising developers are being cautious,” he added.Since Singapore’s reopening in 2022, Orchard prime area retail rents have improved and could recover to pre-pandemic levels by the end of 2024, said Mr Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and South-east Asia.
Other redevelopment initiatives include the first major revamp since 2003 of The Cathay – home of the iconic Cathay Cineplex – which closed in August 2023, and is expected to reopen in late 2024. Cistri’s Mr Loo said the SDI scheme is aimed at “pushing developers to make bold moves in driving urban transformation”.
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