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GRANTING redevelopments in the Cecil and Anson areas the option to retain commercial use if long-stay serviced apartments (SA2) are included in their proposals could be transformative for projects in the Central Business District (CBD), market watchers said. 

However, the new sustainability requirement that all proposals under the Strategic Development Incentive (SDI) and CBD Incentive (CBDI) schemes must meet is likely to hike costs for developers. 

The move to include serviced apartments could be a “game-changer” as a wider range of developers and investors may be willing to consider projects under this scheme, said Edwin Loo, an associate director at real estate consultancy Cistri.

Some strata-titled office buildings in Cecil Street which date back to the 1970s and 1980s – such as GB Building, Tong Eng Building and The Octagon – will soon need rejuvenation, he noted. 

Encouraging redevelopment will help to improve the quality of Singapore’s office market, he added, while also expanding the range of CBD housing options through the inclusion of SA2.