Redevelopment of ageing buildings gathers momentum

As at April 5, the Urban Redevelopment Authority (URA) has received 12 outline applications under the CBD Incentive Scheme (CBDI). Eight of these have been given in-principle approval. Meanwhile, URA has given in-principle approval for four outline applications under the Strategic Development Incentive (SDI) Scheme. The names of the buildings have not been disclosed due to confidentiality reasons.

Industry players whom The Business Times spoke to revealed that the buildings that have received in-principle approval under the CBDI include 80 Anson Road (formerly Fuji Xerox Towers, 345,000 sq ft), 8 Shenton Way (formerly AXA Tower, 672,000 sq ft), Realty Centre, ABI Plaza, 78 Shenton Way Tower 1 and Maxwell House. Two other possibilities includes Tower Fifteen and ABI Plaza.

Under the SDI, buildings with in-principle approval include Central Mall and Central Square, and Faber House.

The redevelopment of these buildings would introduce more live-in residents in the CBD, turning the area into lively neighborhoods. With the economy opening up, office demand has been on the recovery track. As such, in the immediate term, the acceleration of the redevelopment of CBD ageing office assets will likely stress the tight supply condition and push rents higher.