In response to mounting concerns over vacant commercial properties, the Urban Redevelopment Authority (URA) has announced extensive revisions to change-of-use regulations, designed to streamline the conversion process for underutilized commercial spaces throughout Singapore.
URA introduces streamlined regulations to accelerate the repurposing of vacant commercial properties across Singapore.
The new framework reduces administrative burdens by easing planning permission requirements for specific use conversions and introducing a more flexible approval process for vacant land and building alterations.
A significant enhancement includes the introduction of the Change of Use Lodgment system, which enables eligible applications to receive instant approval at reduced costs.
While this simplifies the procedural framework, applicants should note that Land Betterment Charges, collected by the Singapore Land Authority, may still apply to certain conversions.
For property owners seeking approval, several eligibility criteria must be satisfied.
The proposed new use must align with local zoning regulations and existing land use patterns while maintaining compatibility with surrounding industries.
Industrial properties must adhere to URA’s 60:40 space usage regulation, which mandates that a minimum of 60% be retained for original industrial purposes.
Prior clearances from relevant agencies such as NEA, LTA, and SCDF are required based on the intended new usage.
The application process operates entirely online through customer service portals, with required documentation including Land Use Proposal Forms and various clearances.
Currently, processing fees have been temporarily waived, representing significant savings of up to $1,199 inclusive of GST.
Standard applications typically undergo evaluation within 10 working days, with outcomes communicated through multiple channels.
This regulatory shift forms part of the government’s broader strategy to optimize vacant or underutilized commercial real estate, particularly encouraging conversion to food and retail establishments, community facilities, and creative spaces.
The initiative benefits multiple stakeholders, including landlords seeking improved occupancy rates and business owners requiring flexibility to adapt premises to evolving market demands.
While the framework offers substantial advantages, applications remain subject to urban planning policies and safety standards, with some limitations applying to properties generating increased traffic or storing hazardous materials.
Applicants should also remain vigilant about AML regulations that aim to prevent illicit funds from entering the real estate market.
