New bonus GFA scheme is a carrot that comes with a stick

Singapore

DEVELOPERS welcomed a new bonus gross floor area (GFA) incentive scheme aimed at transforming the built environment sector, although the all-or-nothing approach to qualify for the bonus GFA and the costs associated with fulfilling certain criteria were among key concerns flagged by some.

Under the five-year Built Environment Transformation GFA Incentive Scheme, private developments outside the Government Land Sales (GLS) programme will be able to enjoy up to 3 per cent bonus GFA if they achieve enhanced standards in productivity, digitalisation, sustainability and quality. The new scheme applies to residential developments such as condominiums as well as non-residential developments such as offices, retail, business parks, hotels, or white sites. Mixed-use developments can also qualify. To participate, sites must have a GFA of at least 5,000 square metres (sq m).