Singapore’s urban landscape is constantly evolving, with buildings and developments popping up across the city. To encourage sustainable and innovative development practices, the Urban Redevelopment Authority (URA) and the Building and Construction Authority (BCA) has implemented several incentive schemes for building developers. In this article, we’ll take a closer look at three popular incentive schemes and their potential benefits.
The CBDI Incentive Scheme aims to encourage the development of high-quality and sustainable buildings within the Central Business District (CBD). This scheme offers developers additional Gross Floor Area (GFA) if they meet certain criteria, such as achieving a minimum Green Mark certification rating or incorporating sustainable features into their development. The additional GFA awarded is known as Bonus GFA and can be used to increase the floor area of the building or to provide additional amenities for occupants.
What is required to apply for the Central Business District (CBDI) Incentive Scheme?
To apply for the Central Business District (CBDI) Incentive Scheme, developers need to submit a written application to the Urban Redevelopment Authority (URA). The application should include details of the proposed development, including its location, the intended land use, and the expected floor area.
Developers must also provide a detailed breakdown of the expected costs of the development, including construction costs, financing costs, and land costs. In addition, developers must provide information on the expected financial returns from the development, including projected rental income and sales revenue.
The application should also include a detailed explanation of how the proposed development will contribute to the overall growth and development of the Central Business District (CBD). This may include information on how the development will create new jobs, improve transport links, or enhance the overall attractiveness of the area.
Finally, developers must pay a non-refundable application fee, which is currently set at SGD $5,000. Once the application has been submitted, the URA will review it and make a decision on whether or not to grant the incentive. If the application is successful, the developer will be notified in writing and will need to comply with any conditions or requirements set out by the URA.
What are the potential benefits developers can receive from the Central Business District (CBDI) Incentive Scheme?
Increased allowable Gross Floor Area (GFA): The CBDI Scheme allows developers to increase the maximum GFA allowable for their development by up to 25%, subject to certain conditions. This can provide developers with more leeway to design and build larger and more complex developments in the Central Business District.
Reduction in Development Charge (DC): Developers who are successful in their application for the CBDI Scheme may also be eligible for a reduction in DC payable. The amount of reduction is calculated based on the increase in GFA allowed under the scheme.
Greater flexibility in land use: The CBDI Scheme also provides greater flexibility in land use. Developers may apply for a change of use for their development without having to pay DC for the change, subject to certain conditions.
Overall, the CBDI Scheme provides a range of benefits to developers who are looking to develop properties in the Central Business District, including increased GFA, reduced DC, and greater flexibility in land use.
The Green Mark Scheme is an incentive program that rewards developers for building environmentally friendly and sustainable developments. Under this scheme, developers are encouraged to incorporate energy-efficient features, such as solar panels, and reduce water consumption through the use of rainwater harvesting systems. The Green Mark Scheme is divided into four categories – Certified, Gold, GoldPLUS, and Platinum – with increasing levels of sustainability required to achieve higher certification ratings. The Green Mark Scheme is administered by the Building and Construction Authority (BCA).
How can developers apply for the Green Mark Scheme?
To apply for the Green Mark Scheme, developers must achieve a Green Mark certification rating of at least Certified and submit an application to the BCA.
What are the potential benefits developers can receive from the Green Mark Scheme?
Developers who achieve a higher certification rating under the Green Mark Scheme can benefit from lower operating costs due to the incorporation of energy-efficient features. Additionally, the Green Mark Scheme may provide tax incentives and rebates on development charges.
The Strategic Development Incentive (SDI) Scheme is a planning incentive scheme offered by the Urban Redevelopment Authority (URA) in Singapore. The SDI Scheme aims to encourage the development of strategic sites within the city that can contribute to the long-term economic and social development of Singapore.
Under the SDI Scheme, developers can apply for incentives that will allow them to carry out developments that might not have been otherwise feasible. This includes allowing for greater building heights, larger allowable gross floor area (GFA), or greater flexibility in land use.
The SDI Scheme is open to strategic sites within the city, which are identified by the URA. These sites may be located in the Central Business District, or in other areas of the city that are considered to be of strategic importance.
Overall, the SDI Scheme provides an opportunity for developers to undertake large-scale, strategic developments that can help to shape the future of Singapore’s built environment.
How can developers apply for the Strategic Development Incentive (SDI) Scheme?
Developers who are interested in applying for the Strategic Development Incentive (SDI) Scheme can do so by submitting an application to the Urban Redevelopment Authority (URA).
The application process involves several stages, including a pre-application consultation with the URA to discuss the proposed development and to obtain feedback on the proposal. Developers are required to provide a detailed development proposal, including plans, drawings and other supporting documents, along with their application.
The URA will evaluate the application based on several criteria, including the strategic importance of the site, the quality of the proposed development, and the overall impact of the development on the surrounding area. The URA may also seek input from other government agencies, such as the Building and Construction Authority (BCA) and the Singapore Land Authority (SLA), as part of the evaluation process.
If the application is approved, the developer will be granted the relevant planning incentives under the SDI Scheme. These incentives may include an increase in gross floor area (GFA) beyond the baseline GFA for the site, or a reduction in the Development Charge payable for the development.
Overall, the application process for the SDI Scheme can be complex, and developers are advised to seek professional advice to help them navigate the process and ensure that their application is as strong as possible.
What are the potential benefits developers can receive from the Strategic Development Incentive (SDI) Scheme?
The Strategic Development Incentive (SDI) Scheme offers a range of benefits to developers, which are designed to encourage the development of strategic sites in Singapore.
One of the key benefits of the SDI Scheme is the increase in gross floor area (GFA) that developers can receive for their development. This increase in GFA can be significant, and can allow developers to build more floor space on a given site than would otherwise be allowed under normal planning rules. The exact amount of bonus GFA that can be granted under the SDI Scheme will depend on various factors, including the location of the site, its size, and its strategic importance.
In addition to the increase in GFA, the SDI Scheme may also offer a reduction in the Development Charge payable for the development. The Development Charge is a fee that developers must pay to the government for the right to build on a particular site. The amount of the Development Charge is calculated based on a variety of factors, including the plot ratio and the land value of the site. By reducing the Development Charge payable, the SDI Scheme can help to make development more financially viable for developers.
Overall, the potential monetary benefits of the SDI Scheme can be significant, and can provide a strong incentive for developers to undertake strategic developments in Singapore.
Conclusion
At the end of the day, incentive schemes do play an important role in encouraging sustainable and innovative development practices in Singapore. The Central Business District (CBDI) Incentive Scheme, Green Mark Scheme, and the Strategic Development Incentive (SDI) Scheme are just a few examples of the many schemes available to developers. By taking advantage of these schemes, Singapore developers can not only improve the sustainability of their developments but also increase the value and attractiveness of their properties in the long run.