Strata-titled Projects Covered By URA’s Strata Subdivision Ban
SINGAPORE – Real estate experts said the Urban Redevelopment Authority’s (URA) ban on Strata subdivision of commercial projects or mixed-use developments with a commercial component in the Central areas will apply immediately to projects that have not yet been strata subdivided, reported The Business Times on Friday morning (18 March, SGT).
As for existing commercial developments that are already strata subdivided, the restriction will apply to future redevelopments.
The restriction will apply to commercial properties situated in Orchard Road, Tanglin Road, Scotts Road, Shenton Way, Robinson Road, Anson Road, Raffles Quay, spaces facing Raffles Place Park, and those along the Singapore River.
It also applies to developments near key landmarks of national significance, namely the Parliament House, the Supreme Court Building, the Padang, and the War Memorial Park.
Nicholas Mak, Head of research and consultancy at ERA Realty, revealed that the existing major buildings located in the applicable places include The Adelphi and Peninsula Plaza both in the Downtown Core area, as well as Orchard’s Far East Plaza, Tanglin Shopping Centre, and Orchard Towers.
Meanwhile, some property experts said the URA’s new rule will enhance tenant mixes, increase occupancy, and improve building maintenance.
CBRE’s Research Head for Southeast Asia Tricia Song highlighted that a single commercial property owner can curate a tenant mix that is more ideal to the surrounding catchment and footfall of an area.
“For example, the CBD area may require a tenant mix with a higher ratio of services (like banking), health and wellness (such as gyms), as well as F&B. This may differ from the Orchard Road submarket where tenant mix could have a higher focus on fashion, retail-tainment, and flagship stores for both local and international retail brands.”
While commercial properties with better branding and footfall may record higher rents and better rental demand, “vacancy levels and rents are still ultimately dependent on market demand and supply dynamics, coupled with the development’s locational attributes,” she added.
