Serviced apartments seen as ‘game-changer’ for CBD rebuilds, but sustainability condition may raise costs
Updated incentive scheme requirements may deter developers and investors due to higher expenses, longer timeline: market watchers
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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.
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