PRIME LIVING IN SINGAPORE'S DOWNTOWN - INSIGHT PAPER SEPTEMBER 2021 - Edmund Tie
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INSIGHT
PAPER
SEPTEMBER 2021
PRIME LIVING IN
SINGAPORE’S DOWNTOWN
Introduction
Over the past few decades, the Central Business District (CBD), which comprises mainly
Raffles Place, Shenton Way, and Tanjong Pagar, has served as a bastion of commercial
activities and anchored Singapore’s transformation from a third-world country to a first-
world country. The traditional business district typically comprised commercial buildings
with some ancillary retail uses. Downtown living was largely unheard of until 2002, when
the government launched the site for The Sail @ Marina Bay, which became the first major
residential development in the Marina Bay area.
While the CBD has witnessed a growing trend towards downtown living, recent
developments appear to have put a brake to the momentum of the trend. Decentralisation
of commercial activities is increasingly commonplace and the pandemic has helped
entrench work-from-home practices as part of a new hybrid work model.
EDMUND TIE RESEARCH 1
Overview
In this paper, we examine the evolution The combination of other real estate
and prospects for downtown living, which uses such as commercial, retail, F&B
broadly comprises Districts 1, 2, and 7. A and hospitality in the form of mixed-
decade ago, the key notable projects in use developments have injected greater
the downtown were Emerald Garden, vibrancy and convenience into the
Icon Residence, The Sail @ Marina downtown and broadened the scope
Bay, Marina Bay Residences, The Clift, of living for the residents. By the end of
and One Shenton (2011). Over the last 2020, there were 11,745 residential units
decade, new notable mixed-use projects in the downtown, which represents a
completed in the CBD include Lumiere, growth of 40% from the stock about five
Marina Bay Suites, V on Shenton, Marina years ago. Comparatively, the traditional
One Residences, and Wallich Residence. prime areas i.e. Districts 9, 10, and 11,
In the Beach Road area, there have been saw a significantly more muted growth of
new projects like South Beach Residences 3% over the past five years.
and DUO Residences.
The combination of other real estate uses such as commercial,
retail, F&B and hospitality in the form of mixed-use developments
have injected greater vibrancy and convenience into the
downtown and broadened the scope of living for the residents.
Selected downtown projects with other real estate uses
Project Year of completion No. of units Other uses within development
Emerald Garden 1998 265 Retail
Icon Residence 2007 646 Retail
The Sail @ Marina Bay 2008 1,111 Office, retail
Marina Bay Residences 2010 428 Office, retail
One Shenton 2011 341 Retail
The Clift 2011 312 Retail
Lumiere 2012 168 Retail
Marina Bay Suites 2014 221 Office, retail
South Beach Residences 2016 190 Hotel, office, retail
V on Shenton 2017 510 Office
Duo Residences 2017 660 Hotel, office, retail
Marina One Residences 2017 1,042 Office, retail
Wallich Residence 2018 181 Hotel, office, retail
Source: Various sources
EDMUND TIE RESEARCH 2
Master Plan intention for Singapore’s downtown
In the past, much like
Manhattan of New York City and the
financial district of London, Singapore’s
downtown was a bustling work district plied
by masses of office workers in the day. In the
evenings and over the weekends, most signs of
activities would recede, leaving behind a ghost
town of towering office developments stripped of
their daytime bustle. Market forces, which often
attract office uses as the sole highest and best
use of the central areas of cities, tend to result
in a homogenous district with few other uses
that could meaningfully attract transient
population outside working hours, or
retain a live-in population.
EDMUND TIE RESEARCH 3
With rising priority, the Urban Acknowledging the importance of
Redevelopment Authority’s (URA) planning connectivity in activating an area,
intent for Singapore’s downtown is for it to the government has factored such
become more than just an area populated considerations into the long-term concept
by office towers and transient population. plan for the downtown. New MRT lines
URA envisions the downtown as an area have been planned or implemented to
of mixed uses, such as retail, F&B, and serve the downtown area, namely the
residential, which houses a substantial Downtown Line, Circle Line, and Thomson-
live-in population for a more optimised East Coast Line. These additional MRT lines
use of land throughout the week. One that span the island fairly comprehensively
planning strategy that URA has undertaken are meant to support the existing rail lines
in achieving this vision is through zoning that historically serve the downtown area,
multiple land parcels in the downtown namely the North South Line and East
as White sites for future mixed-use West Line. The improved rail network
developments, which are developments substantially enhances connectivity,
that comprise two or more different uses thereby increasing convenience for
e.g. residential with retail or residential, people travelling to and from downtown
office and retail, or even office, retail, hotel for recreational and visiting purposes
and residential. These uses complement and in addition to work. This contributes to
synergise one another, and when integrated growing attractiveness of the downtown
with or located in close proximity to an as a location for residences.
Mass Rapid Transit (MRT) station, will result
in developments that are more convenient,
sustainable, and vibrant for users.
EDMUND TIE RESEARCH 4
As part of the Master Plan 2019, URA has The Master Plan also reviewed the
also released a set of CBD rejuvenation planning intent for the downtown on a
schemes that seek to renew Singapore’s precinct level, which will be realised in
downtown and transform it into a dynamic stages as and when new developments
24/7 downtown and global financial hub. or redevelopments occur. For example,
The CBD Incentive Scheme, for example, it is envisaged that the Cecil and Anson
allows for development intensification and precincts will be transformed from an
a wider range of permissible land uses such older precinct of predominantly office
as residential and hotel for older (at least developments to dynamic and lively urban
20 years) offices located in the downtown. neighbourhoods with a wide variety
Such schemes have already resulted in the of mixed uses. Cecil is envisioned as a
announcement of redevelopment plans, precinct that houses retail arcades that
such as AXA Tower and Fuji Xerox Towers. provide shortcuts through buildings, abuzz
with convenient amenities, adding an
element of surprise and delight, not unlike
what we see in other commercial centres
like Sydney. The plans for Anson precinct
revolve mainly around the improvement of
connectivity and the public realm through
the injection of courtyards and pockets
of open space that will serve as outdoor
‘living rooms’ for both the working and
residential communities of the area.
EDMUND TIE RESEARCH 5
Other upcoming developments in the CBD
include Central Boulevard Towers just across the
Lau Pa Sat market. In addition, URA has zoned
multiple sites in the downtown area as White
sites for mixed uses, with the most recent launch
being the Marina View White site just across the
UIC building. If awarded the downtown could
see a new mixed-use development potentially
housing 905 residential units, 540 hotel rooms,
and up to 2,000 sqm of retail space, further
strengthening the presence of mixed-use
developments downtown.
Government intention aside, market forces will
continue to play a key role in determining the uses
that eventually occur in the downtown area. In
times when residential prices are holding strong
and providing margins above that from developing
offices, developers might be more inclined to
consider the development of new residential or
mixed-use developments downtown.
EDMUND TIE RESEARCH 6
Benefits of downtown living
There are some notable differences between
the residential housing in the downtown
compared to the traditional prime areas.
For one, the downtown developments tend
to be larger scale mixed-use developments
that are integrated with the various MRT
stations. These integrated developments
also tend to provide seamless integration
of shared spaces, amenities, and services
within the development.
South Beach Residences
Connecting entrance to Esplanade MRT station
EDMUND TIE RESEARCH 7
Additionally, the majority of residential
options downtown are completed more
recently and relatively younger than
those in the traditional prime areas. New
developments will offer the latest in-
home design, layouts, and smart home
technology. For example, One Bernam
offers a Smart Gateway that connects and
controls smart devices in your home from
one wireless hub, while push notifications
allow alerts to be received the moment
these devices sense irregularities at home.
At Marina One Residences, residents can
experience MySphere, which is a unified
mobile platform launched by M+S that
offers integrated smart live-work-play
management system that seamlessly
combines smart controls, community
Marina One Residences
management, and lifestyle offerings.
MySphere app
EDMUND TIE RESEARCH 8
The ease of connectivity and convenience meant homeowners
would likely be spending less time within the home and as a result,
residential units in downtown are relatively smaller compared to
those in the traditional prime areas. The smaller homes do reflect
the lifestyle choices of residents and their family structure as well.
For reference, the median size of downtown homes sold in Districts
1, 2, and 7 in 2020 was 700 sqft, about 35% smaller than the 1,076
sqft homes in the traditional prime areas.
Lifestyle wise, there are numerous amenities for live, work, and
play, all within close proximity. There are already established food
precincts along Tanjong Pagar Road and streets like Liang Seah
Street, Purvis Street and Tan Quee Lan Street. There are several
retail havens in the form of One Raffles Place, By the Bay, The Heart
in the Marina Bay precinct as well as other larger retail malls like
Suntec City and Bugis Junction in the Beach Road precinct. With
Lau Pa Sat
easy access to practically all essential amenities, there is no need
for private transportation, this would appeal to the environmentally
conscious. The downtown area also offers an element of exclusivity
and privacy. The transient working population and the low
concentration of families with young children mean that a tranquil
environment can be expected from living downtown.
Recreational options are aplenty with Gardens by the Bay and the
Marina Barrage, which are popular and scenic locations for cycling
and kite flying. There are numerous gyms and yoga studios in the
vicinity offering classes for the health conscious. There are also
numerous luxury hotels around the downtown for residents looking
to go on a staycation.
Marina Barrage
EDMUND TIE RESEARCH 9The downtown area is also home to
buildings of different eras and styles. There
are buildings of the neoclassical style like
Victoria Theatre and Concert Hall, Fullerton
Hotel, and CHIJMES, the Art Deco style like
Cathay Building and Ascott Raffles Place
(former Asia Insurance Building), the Brutalist
style like OCBC Centre and Singapore Land
Tower, and more futuristic architecture
that is embodied by buildings such as the
Esplanade and Marina Bay Sands Integrated
Resort. Downtown residents also enjoy
proximity to Singapore’s historic and ethnic
districts e.g. Boat Quay, Chinatown, and
Kampung Glam. The area is scattered with
numerous museums and theatres too such as
the ArtScience Museum, Asian Civilisations
Museum, National Museum, Red Dot Design
Museum, National Gallery, Esplanade and
Marina Bay Sands Theatre. Many of them are
Chinatown
found in the Civic District of Singapore.
Gardens by the Bay & Marina Bay Sands
EDMUND TIE RESEARCH 10Resident and ownership demographics
Due to the wide range of lifestyle options offered by common, as are singles. In fact, singles form almost 40% of
downtown living, the demographics of downtown residents the residents in the Downtown Core planning area. While
are quite unique. Almost half of downtown residents are there are childcare centres in the downtown, there is a lack
in their 20s and 30s, as compared to about a quarter of of primary and secondary schools, which could explain the
residents in traditional prime areas. Small families are low proportion of families.
Breakdown of residents by age groups
Age of residents
16.4%Available ownership data suggests a higher proportion On foreign demand, over the last three years i.e. 2018
of Housing Development Board (HDB) upgraders and to 2020, the share of foreigner purchase is consistently
foreigners purchasing properties in the downtown higher in the downtown. This can be attributed to the
relative to the traditional prime areas. One reason for higher familiarity of foreigners with iconic attractions like
interest from HDB upgraders could be that the units Singapore Flyer, Marina Bay Sands, and the neighbouring
downtown are more affordable due to the smaller locality. In terms of the key nationalities, the Chinese
unit sizing. This is supported by the median prices of and Americans are the key foreign buyers scooping up
transacted units in 2020, which showed a median price of properties in downtown. The Malaysians and Indonesians
$1.5 mn for units in the downtown compared to $2.1 mn are also active buyers in the downtown.
for units in the traditional prime areas.
The downtown will likely continue to attract the well-
Although most property purchases are likely to be heeled younger population who seek the convenience
for investments, there is a growing trend of owners and thrills of living in downtown. The draw for foreigners
purchasing such properties for own stay, and they could will also remain, especially those from cities with
be young professionals looking for a home offering easy sizeable residential communities in the business districts,
access to their workplaces in town. Retirees looking and those who believe in the growth potential of the
to downsize from their current larger units could downtown property market in Singapore. Anecdotally, we
form another potential buyer group, in particular for also see foreigners purchasing properties for their young
developments that provide easy access to healthcare children who work in the CBD.
services and other amenities.
Share of foreigner purchases
Traditional prime areas
25% 2018 14%
New prime areas
23% 2019 14%
13% 2020 10%
Source: URA
EDMUND TIE RESEARCH 12Conclusion Looking ahead, we can expect downtown living to Over the next 3-5 years, we are positive on the growth develop with increasing convenience and vibrancy, and outlook in the Tanjong Pagar and Bugis/ Beach Road we are sanguine on how mixed-use developments can precincts, especially for mixed-use developments that enrich the quality of a holistic living experience in the are integrated with the transport node. Tanjong Pagar is new normal. Complementary real estate uses can greatly already an area of bustling daytime activities and vibrant synergise one another, and when integrated with or nightlife. The upcoming and potential redevelopment located in close proximity to a Mass Rapid Transit (MRT) of AXA Tower and International Plaza respectively could station, will result in spaces that are more convenient, increase the residential population and further add spark sustainable, and vibrant for users. Already, mixed-use to this vivacious hub. Similarly, the cultural Bugis precinct developments such as the MBFC and Marina One have can expect a new injection of life in the near term, arising brought alive the Marina Bay while the development of from the upcoming Guoco Midtown and The M projects, Guoco Tower and Wallich Residence have accelerated both mixed-use developments that are integrated with or the gentrification effects in the Tanjong Pagar area, in in close proximity to the Bugis MRT station. addition to the other live-in population in the area. EDMUND TIE RESEARCH 13
Over the next 5 to 10 years, we can expect the introduction of modern Backed by growing demand for mixed-use developments and the rejuvenation of ageing pure-office districts downtown living and ongoing to contribute to the convenience and excitement of downtown living. The government efforts to bring about a downtown can also look forward to synergistic growth through the integration wider variety of real estate uses in with the development of the adjacent Greater Southern Waterfront (GSW) and around the downtown, prime that extends from Pasir Panjang to Marina East. GSW will be developed into living in Singapore’s downtown is a new major gateway for sustainable suburban living and the land uses there, poised to become a lifestyle that is such as schools, will serve the downtown population and further enhance the desired by many. attractiveness of downtown living. EDMUND TIE RESEARCH 14
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