The government will move to tackle the office space crunch in the Central Business District, National Development Minister Mah Bow Tan said yesterday.
Acknowledging an ‘imbalance’ between supply and demand, he said the authorities will likely step up the pace of government land sales (GLS) in the CBD. ‘I think the quantum will have to be stepped up as we see a tightening up of supply,’ Mr Mah said.
The government has also set an ambitious target for further development of Marina Bay and the new downtown, which Mr Mah said could begin from as early as 2009.
To deal with the immediate office space crunch, the government is considering releasing state land for short-term use, he said.
The Urban Redevelopment Authority confirmed later that it is exploring whether vacant sites can be used for ‘transient offices’.
‘They would be basic but proper office accommodation that can be constructed quickly - for example, one year - and would be on land on short tenures,’ a spokesman said. ‘This is still under study and we have not firmed up the details yet.’
Mr Mah, speaking yesterday at the ground-breaking ceremony for a new bridge that will span the mouth of Marina Bay, painted broad strokes of how the rest of Marina Bay will take shape.
The first site to be released - a white site with an office space requirement, on Central Boulevard - will be launched for sale in May, he said.
Another key site is the stretch between the upcoming Marina Bay Sands and Marina Bay Financial Centre. Mr Mah said this choice plot will complete the loop of developments around Marina Bay when completed, but it will only be available when other construction work ends around 2009.
Other sites that will then come on stream will extend from Marina Bay and wrap around the Garden at Marina South.
The existing CBD will also be extended southwards into what is being called the Central sub-zone.
The as-yet-unnamed bridge, which will cost $82.9 million, will provide direct road access between Marina Centre and the new Bayfront at Marina South.
Mr Mah said that the bridge is part of $2 billion to be spent on infrastructure developments there, including the critical common services tunnel. ‘In turn, we have attracted about $10 billion of investments to date,’ he said.
Land likely to be released for development this year includes a boutique hotel site next to the Marina Bay Sands, the international cruise terminal site and the central promontory site. All are likely to go through a Request for Concept stage.
Mr Mah said he wants to reassure the business community that office space will be made available. State buildings vacated by the government could be an immediate source, he said. ‘It may not be used for MNC head offices, but it can certainly be used for back-end office for financial institutions.’
The government has moved some of its offices out of the CBD but Mr Mah said there are ‘one or two’ left.
He also said the authorities will ‘encourage’ users to make better use of existing sites, but did not elaborate on whether the government will make it more attractive for owners of old office buildings to redevelop them.
With the pace of construction likely to be maintained or stepped-up, Mr Mah reiterated that sand supplies are not a concern because the authorities are finding new sources.
He said the supply and price of sand will not affect the building of the integrated resorts, and he does not expect any delay to the opening dates.
Mr Mah did, however, say the government is close to finalising details on how it will help contractors involved with government contracts who face cash flow problems because of higher construction costs. The government said earlier it would pay for 75 per cent of the additional costs for public-sector contractors.
Details are expected within the month, Mr Mah said. ‘In principle, we will make progress payments. If we can help contractors with cash flow payments, we will do so.’
Source: The Business Times, 31 March 2007
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