S'pore property developers get incentive to meet higher standards in 3 proficiencies
SINGAPORE – A new incentive scheme to spur developers to digitalise and meet enhanced standards under the construction industry transformation map was launched on Wednesday (Nov 24).
For a period of five years from Wednesday, private developments outside of the Government Land Sales programme can enjoy up to 3 per cent bonus gross floor area (GFA), if they achieve enhanced standards in productivity, digitalisation and sustainability.
Developers will also have greater flexibility to utilise this bonus area within the development, compared with other bonus GFA schemes.
National Development Minister Desmond Lee announced this during the Real Estate Developers’ Association of Singapore’s 62nd anniversary dinner at the Sands Expo & Convention Centre.
“This (scheme) will support our progressive developers, who proactively push the boundaries,” Mr Lee said.
About 400 guests, who adhered to safe management measures, attended the event in person.
Zones of 100 people were designated, with five people at each dinner table. Safe distancing ambassadors were present, and pre-event testing was carried out for unvaccinated individuals.
Mr Lee said the incentive scheme will be extended to Government Land Sales sites for a limited period.
Up till the second quarter of 2022, such developments can get up to 2 per cent bonus GFA.
“Thereafter, we plan to raise the minimum requirements for Government Land Sales sites in terms of the levels of productivity, digitalisation, sustainability and quality,” said Mr Lee.
The new bonus scheme will thus encourage the industry to meet those enhanced standards before the requirements take effect, he noted.
Residential developments eligible for the scheme are condominium and flat developments.
Eligible non-residential developments include commercial, industrial and institutional developments such as offices, business parks and community buildings.
Mixed-use developments could consist of any combination of the above-mentioned developments.
Any other developments would be assessed based on the merits of proposals.
There are different industry transformation map outcome requirements on digitalisation, productivity and sustainability, depending on building type.
Technical details are available on the Building and Construction Authority’s (BCA) website.
Developers or building owners can enjoy up to 3 per cent additional GFA allowed beyond the Master Plan Gross Plot Ratio for meeting these requirements in their building development on private sites of at least 5,000 sq m GFA.
Sites launched under the Government Land Sales programme on or before March 31, 2022, may also be eligible for up to 2 per cent bonus GFA above the Master Plan Gross Plot Ratio if super-structural works have not commenced.
Applicants who have obtained planning permission for their development proposals will need to submit an amendment or new application if they wish to apply for the incentive scheme. Their eligibility will be determined on a case-by-case basis.
If a project fails to meet the stipulated requirements, the scheme applicant will be liable to pay a termination sum, or the sum equal to 100 per cent of the equivalent market value of the bonus GFA granted for the project.
The BCA will withhold the security deposit that was submitted when the bonus was approved. The applicant will have to pay any balance of the termination sum if the security deposit is not sufficient to cover the cost.
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