Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

Singapore Real estate / Thematic (Sector/Industry)

<h2>Singapore </h2><h3>Commercial properties set for big change; Long-term reduction in supply likely</h3><ul><li>Offices in the CBD, especially older buildings, need to evolve. Both the Central Business District Incentive (CBDI) Scheme and Strategic Development Incentive (SDI) Scheme were introduced to incentivise the redevelopment of older buildings to more productive mixed-use developments. Under the CBDI scheme, qualifying properties are allowed to intensify their GFA by 25-30%, depending on the proposed land use. Meanwhile, the SDI is intended to redevelop precincts in strategic areas across Singapore, such as Orchard Road, the CBD and Marina Centre</li><li>Since the circuit-breaker period, URA has received nine outline applications under the CBDI Scheme, of which six have been given in-principle approval. Three outline applications under the SDI Scheme were also given in-principle approval. The take-up of these schemes are also likely to result in the long-term reduction of office stock in the CBD, which plays a part in the government's decentralisation strategy to have more offices located outside the city centre, CBRE said.</li></ul><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/216/388/original/image018.png?1625188834" class="editor-image img-responsive" data-smartkarma-image-id="216388"></figure></section>

Singapore Commercial properties set for big change; Long-term reduction in supply likelyOffices in the CBD, especially older buildings, need to evolve. Both the Central Business District Incentive (CBDI) Scheme and Strategic Development Incentive (SDI) Scheme were introduced to incentivise the redevelopment of older buildings to more productive mixed-use developments. Under the CBDI scheme, qualifying properties are allowed to intensify their GFA by 25-30%, depending on the proposed land use. Meanwhile, the SDI is intended to redevelop precincts in strategic areas across Singapore, such as Orchard Road, the CBD and Marina CentreSince the circuit-breaker period, URA has received nine outline applications under the CBDI Scheme, of which six have been given in-principle approval. Three outline applications under the SDI Scheme were also given in-principle approval. The take-up of these schemes are also likely to result in the long-term reduction of office stock in the CBD, which plays a part in the government's decentralisation strategy to have more offices located outside the city centre, CBRE said.

ASEAN Builder's Scoop (2Jul21) - CBD Office Reduction in LT Supply