Singapore, 14 Mar 2023 In May 2021, developer Frasers Property said it had secured provisional approval from the authorities to redevelop Bedok Point into a residential development.
The mall was the first of several retail and office buildings that subsequently shuttered for redevelopment, as developers reassessed their use of space amid the prolonged disruption from the Covid-19 pandemic.
Under the scheme, eligible buildings can receive an increase in plot ratio which maximises the development’s gross floor area, said Ms Christine Sun, OrangeTee & Tie senior vice-president of research and analytics.
“As residential uses may have a lower capital value when compared with commercial uses, building owners who convert the land use from commercial to residential mixed-use development may now enjoy better returns or profitability with the increased GPR (gross plot ratio),” said Ms Sun.
She said that the residential market is a thriving segment in the real estate industry, with continuous price growth and strong housing demand over the past few years.
“Commercial properties, in contrast, were more affected by the pandemic, especially during periods of lockdowns... Therefore, developers may view residential property sales to be more lucrative in the long run,” she said.