A new era is emerging in the forgotten parts of Singapore's renowned Orchard Road shopping district.

• The majority of the action on Orchard Road, Singapore's primary shopping avenue, occurs in the central section of its 2.2 km (1.3 mile) length.
• The URA, Singapore's land planning agency, will incentivize the redevelopment of older properties along Orchard Road's periphery.
• The ownership structure of many older commercial buildings on the upper stretch of Orchard Road presents a challenge for URA and private sector developers looking to redevelop the area.

The Orchard Road shopping center in Singapore's Far East has declined in recent times.

Although the 42-year-old mall is only a five-minute walk from the Orchard MRT station, one of Singapore's busiest subway stations, it experiences very low footfall. Approximately one-fifth of the units are vacant and available for sale or rent, and the occupants are more likely to be maid agencies rather than high-end stores or restaurants typically found in a prime shopping district.

The feeling of emptiness is prevalent in many of the older malls on Orchard Road, which extends from Tanglin to the Orchard MRT station.

Orchard Road, Singapore's primary shopping avenue, stretches 2.2 kilometers (1.3 miles) long, with most of the action occurring in the center of the street as well as at specific malls linked via underground walkways to subway stations. However, unlike several of its neighbors, the Far East Shopping Center is not connected to the Orchard MRT station.

The older properties along Orchard Road's periphery may soon be redeveloped due to financial incentives from the URA, but the investments required will still be substantial, likely reaching billions of dollars due to the high cost of land and construction in Singapore.

New investments

In 2020, Hotel Properties Ltd (HPL), owned by billionaire Ong Beng Seng, received approval to demolish three of its properties and construct a 114,150 square-meter mixed-use development that includes a hotel, residential units, retail space, and office space in the Tanglin section of Orchard Road.

The Forum The Shopping Mall and the voco Orchard hotel share 180 meters of frontage along Orchard Road. Last year, the Forum was valued at 948 million Singapore dollars ($705.9 million).

The redevelopment hasn't started, however.

In a deal valued at 439 million Singapore dollars, City Developments Ltd (CDL) acquired the remaining ownership of Delfi Orchard, a 40-year-old, 11-story retail and residential building, earlier this year.

CDL is predicted to revamp Delfi Orchard, the nearby Orchard Hotel, and the mall owned by CDL Hospitality Trusts, a real estate investment trust managed by CDL.

Arts, cultural and lifestyle offerings

According to Singapore's URA, the Tanglin area is planned to be a mixed-use neighborhood with a focus on arts and artisanal culture. Both locals and tourists can expect to enjoy enhanced arts, cultural, and lifestyle offerings as building owners redevelop and introduce new uses to meet the evolving needs and preferences of visitors.

From 2025, URA will commence work on a series of improvements to the entire Orchard Road area, which include a 6-kilometer-long "green connection" linking the Singapore Botanic Gardens to Istana Park and Fort Canning Park located near the other end of Orchard Road.

Pacific Eagle Real Estate's executive director, Richard Goh, stated that the Tanglin section of Orchard Road can be made more appealing by incorporating covered walkways and "spaces that offer more than just traditional retail and F&B."

He remembered a period when Tanglin was a shopping hub, mentioning the old Rasa Singapura Food Center, which hosted numerous renowned hawker stalls. The center shut down in 1989 to pave the way for new construction.

Tanglin Shopping Center, acquired by Pacific Eagle for 868 million Singapore dollars in 2022, is being redeveloped by the family of Indonesian billionaire Sukanto Tanoto.

Challenges

The ownership structure of many older commercial buildings on the upper stretch of Orchard Road poses a challenge for URA and private sector developers looking to redevelop the area. Unlike being under a single holding company, these properties are fragmented into small strata units owned by different individuals.

At least 80% of strata owners must agree on a minimum asking price before a collective sale can be launched.

Negotiating with URA for concessions under the Strategic Development Incentive Scheme is another speed bump that landlords face when redeveloping older properties in the central business district and Orchard Road areas.

The URA is interested in new developments that will enhance the lifestyle or retail offerings, fill gaps in the planned pedestrian networks, or improve access to public areas such as parks and waterways.

The sale of Far East Shopping Center to an investment firm linked to Chinese tycoon Du Shuanghua was canceled earlier this year because the buyer was unable to obtain URA approval for an increase in the new development's gross floor area.

To accelerate the pace of redevelopment on Orchard Road, some modifications to the programs are necessary, according to Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore.

HPL recently purchased Concorde Hotel, an aged property located on the opposite end of Orchard Road, for 821 million Singapore dollars, which was brokered by Savills.

Beating the heat

Tina Qiu, director of PLP Architecture, proposed building covered walkways on Tanglin Road to safeguard pedestrians from Singapore's intense heat, humidity, and frequent rainfall. As global warming intensifies, street-level conditions will deteriorate further in the future.

"We can enhance the pedestrian experience by installing animated canopies and retractable umbrellas that can be activated during high sun and retracted during the night to create a stunning streetscape," she stated.

Qiu, based in London with projects in Singapore, observed that malls linked to Orchard MRT have a unique advantage over those in the Tanglin area because commuters can travel between locations in a cool, air-conditioned environment.

In Singapore, people will use more comfortable spaces that can be easily achieved in a regulated interior environment, she said.