Revitalizing Orchard Road: URA's Ambitious Plan to Transform Singapore's Heart of Retail Faces Ownership Challenges
2024-11-27
Author: John Tan
SINGAPORE: Once a bustling hub of activity, the Far East Shopping Centre along Orchard Road is now a shadow of its former self.
This once-iconic mall, established 42 years ago, is struggling with low foot traffic and a significant number of vacant store units. Despite its prime location just a five-minute walk from the Orchard MRT station, the mall is dominated by what some might call a lackluster retail atmosphere. Instead of high-end brands and gourmet dining, many of its spaces are filled with maid agencies, falling short of the luxury shopping experience that Orchard Road is celebrated for.
The decline of Far East Shopping Centre is symptomatic of a broader trend impacting older malls along Orchard Road, especially those in the upper stretch near Tanglin and the scenic Singapore Botanic Gardens. While Orchard Road remains a crucial artery for shopping, popular activity primarily concentrates in the central stretch with modern malls that benefit from underground connections to MRT stations, a feature that Far East Shopping Centre lacks.
A Vision for Renewal
Fortunately, a revitalization effort led by Singapore's Urban Redevelopment Authority (URA) is on the horizon. The URA is actively encouraging transformation with financial incentives aimed at redeveloping older structures along Orchard Road. However, this ambitious project requires substantial investment, potentially amounting to billions of dollars due to skyrocketing land and construction costs in Singapore.
Major redevelopment projects are already underway, particularly in the Tanglin area. Hotel Properties Ltd. (HPL), led by billionaire Ong Beng Seng, received approvals last year to demolish three of its existing properties to make way for an expansive mixed-use development covering 114,150 square meters. This new venture is set to include a hotel, residential spaces, retail outlets, and offices within two impressive towers.
Prominent properties targeted for redevelopment include the Voco Orchard Hotel and Forum The Shopping Mall, valued at nearly 950 million Singapore dollars in 2023. Meanwhile, City Developments Ltd. (CDL), a leading real estate firm in Singapore, has acquired the remaining units of the aging Delfi Orchard building in a deal worth 439 million Singapore dollars. CDL plans to redevelop Delfi Orchard into a modern space alongside Orchard Hotel and its retail counterpart.
Transforming Tanglin for the Modern Shopper
The URA has ambitious plans for the Tanglin area, envisioning it as a vibrant mixed-use locale focusing on lifestyle, arts, and culture. This revitalization aims to attract both locals and tourists, offering enriched cultural experiences that cater to evolving consumer preferences. Part of this vision includes the establishment of a 6-kilometer-long "green connection" by 2025 that will link major green areas like the Singapore Botanic Gardens and Istana Park, creating a pedestrian-friendly atmosphere that fosters a more inviting community environment.
Developers like Pacific Eagle Real Estate are stepping up to support this transformation, particularly with plans to redevelop Tanglin Shopping Centre into a dynamic space featuring covered walkways and experiential shopping opportunities beyond mere retail and dining.
Overcoming Ownership Hurdles
However, significant challenges lurk in the path toward redevelopment. Many of the older commercial buildings along Orchard Road are divided into fragmented ownership structures, with individual properties owned by multiple stakeholders. To proceed with redevelopment, developers need agreement from at least 80% of the strata owners, which can prove time-consuming and complex.
Moreover, navigating the URA’s Strategic Development Incentive Scheme — designed to inspire property owners to renew their assets — can be complicated. Recent setbacks like the failed collective sale of the Far East Shopping Centre underscore the difficulties developers face, particularly when critical approvals for increased floor area are not granted.
Comfort in the Tropical Climate
Architects are prioritizing comfort in the midst of Singapore's humid climate as a key component of its urban redevelopment. Experts like Tina Qiu from PLP Architecture propose the integration of sheltered walkways with animated canopies and retractable umbrellas to shield visitors from the tropical sun and frequent rain showers.
Creating a comfortable shopping experience is essential, particularly for malls directly connected to the Orchard MRT where shoppers can navigate in an air-conditioned environment. This is seen as a vital competitive advantage over spaces like Tanglin, which may lack such integral features.
A Vibrant Future for Orchard Road
The revitalization plans for Orchard Road, especially the older stretches near Tanglin, hold the promise of reinvigorating this iconic destination in Singapore. While challenges remain, the vision for a lively, arts-centric, and pedestrian-friendly environment is gradually becoming a reality. As these transformations take shape, the future of Orchard Road may very well shine brighter than ever.
Stay tuned, as this evolution may redefine Singapore’s shopping landscape for generations to come!