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Making the city more dense and compact

Sustainability is about retrofitting a city and allowing for local initiatives, reports MATTHEW PHAN

MALONE-LEE Lai Choo, director of the environmental management programme at the National University of Singapore, is no stranger to city planning. Prior to academic life, she headed the conservation division at the Urban Redevelopment Authority and was deputy director of strategic planning and the Ministry of National Development.

In a paper, Dr Malone-Lee and co-author Chua Yang Liang, head of research (South Asia) at Jones Lang LaSalle, argue that changing circumstances - a growing and ageing population, immigration, wider income gaps and a drive to resource efficiency - will challenge traditional planning frameworks.

Business Times: In the paper, you say ‘the planning ideology of technical rationality that emphasises economic growth, spatial order and functional efficiency has been the predominant paradigm’ but this top-down approach needs to evolve into one that draws on local community initiatives. What do you mean by local initiatives?

Malone-Lee: We have to go back to incremental and adaptive thinking. Instead of the big-bang approach - of having a big organisation to plan and design the whole solution all the time - we can look at alternative ways - say there are 10 guys, smaller entities, who understood the local problems and work something out in different ways, perhaps not systematically, but the problem could still be solved in the end, with probably more interesting and varied outcomes.

When you break down something big into smaller components, it may seem chaotic, but some order will emerge if your ultimate goals for the country are congruent.

BT: What’s wrong with traditional approaches?

ML: Traditionally we’ve used the ‘predict-and-provide’, ‘more-of-everything’ model when population and the economy grow. New towns on greenfields, the use of undeveloped land, more roads, more shopping centres, etc.

Now, in European cities, people are rediscovering city centres, converting rooftops, moving back. For example, in Berlin, they turned old areas like single-storey houses and bombed-out areas into cluster housing and in the end only added 10 per cent of the required development on greenfield land.

You can already see this type of thinking partly evolving in Singapore’s plans:

In the 1991 Concept Plan, we talked about needing ‘x’ number of Ang Mo Kio’s. In the 2001 Plan, it was not about adding new towns but making familiar places better, and increasing densities.

But Singapore’s urban planners are always hedging. They have not fully embraced the idea of no more new towns on greenfields until all possibilities of development within existing areas have been exhausted.

BT: Higher densities - can Singapore absorb this?

ML: When we argue that the city can be more dense and compact, people usually counter that it is already very crowded. I think the idea is to be more efficient and optimal in our allocation of density.

Maybe, for example, taking things to different levels, like having a multi-layered city with walking on street as well as upper levels, and densely compact activities around public transport nodes.

And connectivity - we’ve never planned a pedestrian-oriented city, so most people drive in, and much of the city land has to be devoted to road space for cars.

But we have a good MRT system. If we improve links to the stations and bus stations with covered footpaths, overhead bridges or underground links, and focus on mobility of people within urban spaces, we would not have that sense of crowdedness.

BT: Presumably this whole movement requires a mindset change?

ML: We live in a planned city. We do not have a random sprouting of land uses. This has its merits as we avoid certain environmental impacts. But sustainability is not just about building a new city such as the Masdar City in Abu Dhabi or eco-cities in China. It is also about retrofitting a city, which is much harder.

We still have opportunities to do something different, particularly at the urban fringes, like Balestier, Whampoa, Lavender or Rochor, which already have mixed uses - opportunities to allow these places to develop their own symbiosis.

Let Greenwich (a New York neighbourhood) develop out of Balestier. As it is, the land use pattern is not pristine, so additional mixed users will not make it worse. These are some areas where you can let local initiatives take off - albeit with minimum regulations to safeguard things like public health and the environment.

BT: What are the hindrances?

ML: Sometimes zoning guidelines hinder local initiatives. Take, for example, the Bollywood farm-cafe run by Ivy Singh-Lim at Lim Chu Kang. If the restaurant is not allowed on zoning grounds, the viability of the farm could be affected.

BT: How could planners address this?

ML: Perhaps finer-grained zoning, rather than traditional zoning with its big chunks of specialised land use.

Integration allows users, for example, within a big area of residential land, to subdivide it into smaller parcels, for schools, restaurants, light industries or a bus interchange, all at close proximity.

Singapore is already doing that in some areas like One-North, where there are many activities - restaurants, research facilities, infocomm offices, creative industries, condominiums - within a small area.

At the building level, you can have many uses within a single complex.

The Pinnacle@Duxton is a good example. The concept is exciting - you don’t need shops on the ground floor and apartments for 30-40 storeys above, but rather have more mid-level decks where you have, for example, a clinic, supermarket, gym or other amenities, so people move less for daily or basic needs.

When a single multi-storey complex has mixed uses, transport is verticalised within the complex, instead of horizontal.

BT: What are your thoughts on malls?

ML: There is a limit to putting in more of the same kind of shopping malls as far as the retail environment is concerned.

However, the tendency is that in time, large developers will go in and buy up many of the fringe areas, especially if they become vibrant. We may need to protect these areas, such as by allocating large sites elsewhere or having guidelines to keep the developments small, say in four to six-storey dense clusters.

I am in favour of market forces - our real estate industry can only respond to demand - but the question then is how to provide for the diverse smaller groups or individuals, with more alternatives where rental is more moderate.

BT: Are you suggesting that there should be fewer shopping malls?

ML: A lot can be said for home delivery for daily needs - some supermarkets like Cold Storage have on-line facilities and deliver daily necessities to your doorstep.

Then, if people go to the supermarket just for specialities, developers and retailers will change their planning and marketing methods to focus on these. You might then need less space for the big supermarkets, which consume a lot of energy, and need huge space for car-parks or other attendant uses such as on-site storage.

Smaller shops can then compete by getting more specialised in niche areas. For example, we are beginning to see shops selling organic food, Manuka honey, or wine, in places like Bukit Timah and even HDB estates.

Neighbourhood shops are the most environmentally responsible way to go. The concept is to reduce travel distance and encourage walking.

Source : Business Times - 1 Apr 2008

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CapLand revamp to focus on China, S’pore

CAPITALAND chief executive Liew Mun Leong will take a more direct role in the company’s China outfit and Singapore residential business as the developer looks to those segments for growth.

Under changes announced yesterday, Lim Ming Yan, chief executive of the company’s China business, and Patricia Chia, head of its Singapore residential unit, will report directly to Mr Liew from today.

With this ‘flattened organisational structure’, the position of chief executive of CapitaLand Residential is no longer necessary, the company said. With this in mind, Lui Chong Chee, to whom Mr Lim and Ms Chia had reported, will become head of financial services.

Pua Seck Guan, chief executive of CapitaLand’s retail arm, will relinquish his role as co-head of the financial services operations and focus on expanding the group’s retail mall business in Singapore and abroad.

‘It’s a reflection of how quickly the business of China and Singapore homes have grown and how important they have become,’ Vikrant Pandey, an analyst with UOB Kay Hian, told Bloomberg. ‘I view this as a positive signal in the sense that they are putting the emphasis on fast-growing segments.’

CapitaLand’s three biggest markets are China, Singapore and Australia. The developer said that China and Singapore will see a marked increase in the value and volume of residential units to be built over the next few years.

The company’s China unit also oversees the development of integrated projects like the Raffles City developments in Beijing, Chengdu and Hangzhou in addition to building homes. And in Singapore, CapitaLand manages a landbank with a few large-scale developments in the pipeline.

CapitaLand’s stock closed one cent up at $6.35 yesterday.

Source : Business Times - 1 Apr 2008

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URA launches hotel site in Balestier Road

Analysts say the land could fetch $350-$470 psf per plot ratio

THE Urban Redevelopment Authority (URA) yesterday put a one-of-a-kind hotel site in Balestier Road on the market.

The 1.77-hectare plot, next to Sun Yat Sen Nanyang Memorial Hall, includes a 0.46-hectare park.

The park will be named Zhongshan Park and the successful developer will have to provide a public event space there.

The land’s proximity to the memorial hall allows a unique hotel project that draws inspiration from Chinese culture and architecture, URA said.

The memorial hall gets about 50,000 visitors a year now, but URA believes the hotel will boost numbers.

The site is the first released by the government where a developer will have to integrate a park.

The site will go to the highest tenderer, but the development proposal will be reviewed by an advisory panel to ‘ensure a well designed development of appropriate quality and standard’, URA said.

The site has a maximum permissible gross floor area (GFA) of 430,556 sq ft.

At least 60 per cent of this must be set aside for hotel and hotel-related use. The rest can be used for commercial and residential purposes.

URA reckons about 650 hotel rooms can be built on the site.

Analysts say the land could fetch $350-$470 per square foot per plot ratio (psf ppr) - which works out to $150.7-$202.4 million.

But the tender could draw fewer than five bids because of the challenges a developer will face, said Nicholas Mak, director of research and consultancy at Knight Frank.

The developer will need a strong concept to maximise the historical theme of the memorial hall, as well as a plan to promote and increase the usage of the park, which is intended to be a selling point for the hotel, Mr Mak said.

The site is not close to an MRT station, he pointed out. And there is an element of uncertainty because the developer’s plans will be reviewed by an independent panel.

The government identified Balestier as a Singapore ‘identity node’ in 2002 because of its heritage value and old world charm.

Balestier Road right now has a mix of conserved shophouses that were built in the 1840s and modern commercial and residential buildings.

The tender for the site closes at noon on July 16.

Source : Business Times - 1 Apr 2008

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Home Office Scheme period extended

THE Home Office Scheme (HOS), introduced in June 2003 with approval periods of three years, has been revised to allow longer approval of five years.

In a joint statement yesterday, the Housing and Development Board (HDB) and Urban Redevelopment Authority (URA) also said 20,600 HOS applications have been approved so far. Of these, 19,500 are for HDB flats and 1,100 for private properties.

The applications are mainly for IT consultancy, Web design, real estate services and advertising. A report in March 2007 put the number of people using HOS at about 21,000.

While there is no significant change in the active number, it is understood that some ventures that started off under HOS have moved on to commercial premises after their scope expanded beyond HOS.

One former HOS user is Chia Kok Tiong, who applied for HOS to set up his 3D-computer visualisation business called VIImaging in his four-room HDB flat in Serangoon North.

After about eight months, he found that business had grown to a point where he needed to employ three staff. He has since moved to a 600-sq-ft office premises on French Road for which he pays $1,500 per month. ‘It looks more professional,’ he said. HOS is seen as a possible launch pad for SMEs.

Lawrence Leow, president of the Association of Small and Medium Enterprises, said: ‘With HOS, entrepreneurs are able to save on the cost of setting up office space, which often forms the bulk of business costs. HOS is, therefore, tremendously helpful in encouraging start-ups and promoting entrepreneurship in Singapore.

‘I believe that extending the approval periods from three to five years will help entice more individuals to set up businesses.’

Source : Business Times - 1 Apr 2008

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Rolling times for hotels and tourism

The sector is set to offer exciting products and experiences over the next few years, write CHEE HOK YEAN and DOREEN GOH

SINGAPORE’S tourism and hotel industry turned in a stellar performance in 2007, with record levels in visitor arrivals and trading performance. Total international arrivals crossed the 10-million mark in 2007, rising 5.4 per cent year on year to 10.3 million visitors. In tandem with the record visitor volume, hotels reported higher revenue per available room (RevPAR). In the wake of limited supply, this RevPAR growth was driven almost entirely by the growth in average daily rates (ADR).

According to Jones Lang LaSalle Hotels Research, Singapore’s five-star hotel market ended the year with a high average occupancy of 81.4 per cent and ADR of $276. This translates into a gain of around two percentage points in average occupancy and a significant 16.5 per cent growth in ADR from 2006. Consequently, RevPAR rose by around 19 per cent to $224 over the same period.

The fundamentals are strong. Singapore boosted its airport capacity and status as an important regional air hub with the opening of a third passenger terminal in early 2008. A line-up of prominent events and new attractions can also be expected over the next few years - after the recently held Singapore Airshow and the recent opening of Singapore Flyer, as well as the Formula One Grand Prix to be held later this year. Singapore will see the opening of the Marina Bay Sands integrated resort (IR) in 2009. Come 2010, the republic will also have its own Universal Studios theme park within the Resorts World Sentosa IR and a new passenger cruise terminal at Marina South. More recently, the republic won the bid to host the inaugural Youth Olympic Games 2010.

In the light of these tourism developments and the anticipated corresponding growth in visitor numbers, the hotel sector should see healthy demand. The continued release of hotel development sites by the government to address a potential shortfall in room supply will provide opportunities for aspiring hotel owners and investors to join the bandwagon, while existing players could strengthen their foothold.

The introduction of new brands and new product concepts in new locations will also add variety to the Singapore hotel industry. Catering to different market segments and travellers’ needs, these new developments will help to rejuvenate the existing stock of hotels in Singapore. Examples include the 299-key St. Regis, a luxury hotel which soft opened in December 2007.

In May, Singapore’s new Crowne Plaza Changi Airport hotel will open at Terminal 3. A new Singapore farm hotel will also be operational in Lim Chu Kang by September, while the Singapore Recreation Club has plans to add about 35 guest rooms on its third-floor terraces in 2009. Proposed plans to add a hotel at the Laguna National Golf & Country Club and Jurong Country Club are also underway.

Expected competition

Stiffer competition is expected with the opening of new hotels over the next few years. While we believe this supply can be absorbed, greater product differentiation in terms of branding and targeted markets will be required.

Increasing sophistication among travellers seeking a stay experience rather than just a roof over their heads means that hotels need to constantly innovate and improve their physical product and service offerings. Older hotels that have not undergone any refurbishments recently will therefore feel more pressure to do so when this new supply comes on stream.

The supply influx over the next few years will also create challenges in staffing and manpower needs. Talent retention and management should be accorded greater priority as the mobility of the workforce increases with the availability of new employment opportunities both within Singapore and elsewhere in the region.

It is also important to note that while sentiment is currently looking up in the hotel industry, it is always prudent to be prepared for less favourable trading conditions as markets move in cycles. This is important as the highly volatile nature of the tourism and hotel industry means that often, the pain inflicted by any external shocks (for example 9/11, Sars, tsunami, a political unrest) are felt almost instantaneously. This will be reflected in falling visitor numbers and occupancy levels. As the occurrence of these external shocks is usually unpredictable, business contingency plans should be in place to ride out these challenging times.

Continuing investments

Overall, prospects for the Singapore hotel industry remain upbeat over the next few years, barring any external shocks.

The Singapore government will continue to invest heavily in tourism infrastructure, focusing on the meetings and conventions market and medical and cruise tourism to attain its target of 17 million visitors by 2015. Strong growth in Asia, coupled with Singapore’s standing as a key regional financial and business hub, as well as the introduction of new tourism generators such as the development of the two IRs will drive visitor arrivals to new highs over the next few years. This will form a demand base for the nearly 20,000 rooms in the supply pipeline, including potential rooms that could be generated from the sale of sites under the Government Land Sales programme.

The upcoming supply will also help to rejuvenate the Singapore hotel market, providing travellers with a more diverse and interesting array of accommodation options and stay experiences.

In the medium to longer term, the Singapore market could also witness the potential entry of other accommodation concepts such as condotels or condo hotels, which involves the purchase of a right of ownership of the unit, that is, strata sub-division. While condotels or condo hotels are established in the United States, this concept is relatively new in Asia and yet to establish a presence in Singapore. Given its strata-title nature, however, its feasibility will hinge on the regulatory framework.

All in all, the transformation of the Singapore tourism and hotel industry is on track and visitors can look forward to more exciting products and experiences over the next few years.

Chee Hok Yean is executive vice-president and head of corporate advisory, Asia, Jones Lang LaSalle Hotels, and Doreen Goh is associate, Jones Lang LaSalle Hotels

Source : Business Times - 1 Apr 2008

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