Orchard Road, Singapore's famous shopping street, is undergoing a transformation as older properties face challenges in redevelopment.
The Far East Shopping Center, a 42-year-old mall, is struggling with vacant units and a tenant mix that includes less desirable businesses. Despite its proximity to Orchard MRT station, foot traffic has declined, reflecting a broader trend affecting older establishments along the upper stretch of Orchard Road.
The Urban Redevelopment Authority (URA) is offering financial incentives to encourage property owners to revitalize their holdings, but the process is complex and requires the support of at least 80% of strata owners for collective sales. The URA's Strategic Development Incentive Scheme aims to facilitate the redevelopment of older properties in prime locations like Orchard Road. However, the recent cancellation of the collective sale of Far East Shopping Center highlights the challenges developers face in securing URA approval for increased gross floor area in new developments.
Significant investments are expected in the Orchard Road area, with notable projects including Hotel Properties Ltd's plans to create a large mixed-use development and City Developments Ltd's acquisition of Delfi Orchard for integration into a mixed-use neighborhood. The URA envisions the Tanglin area evolving into a vibrant hub that offers enhanced arts, cultural, and lifestyle experiences. However, there are challenges in the redevelopment process, including the ownership structure of older commercial buildings, which complicates collective sales.
Improving pedestrian infrastructure is seen as crucial for revitalizing the area, with suggestions for the construction of sheltered walkways and the integration of animated canopies and retractable umbrellas.
The potential redevelopment of Orchard Road has significant economic implications for Singapore, attracting investments and creating job opportunities. The URA's commitment to enhancing the urban landscape aligns with Singapore's goals of sustainable development and economic resilience. The redevelopment presents an opportunity to redefine the shopping experience, integrating lifestyle, culture, and commerce. The collaboration between the URA, property developers, and local stakeholders will be essential in shaping the future of Orchard Road as a vibrant shopping destination.