Question No.: 1037
Question by: Mr Abdul Muhaimin Abdul Malik

To ask the Minister for National Development since the implementation of restrictions on the strata subdivision of commercial properties in central area in 2022 (a) whether the Ministry has observed any significant changes in the prices or transaction volumes of strata-titled commercial units; and (b) what measures are being considered to ensure that small and medium-sized enterprises have access to affordable commercial spaces for ownership in central area.

Answer:

The strata-subdivided commercial property market in the Central Area has remained stable since the implementation of strata-subdivision restrictions in 2022. Median prices increased modestly at an average of 0.4% per year between 2022 and 2025, compared to a decrease of an average of 0.8% per year in the pre-COVID period between 2016 and 2019. There was an average of 325 transactions per year between 2022 and 2025, compared to an average of 290 transactions per year between 2016 and 2019.

The subdivision restrictions apply only to specific commercial developments in prominent areas and key routes in the Central Area such as Orchard Road and Shenton Way, and those under the Central Business District Incentive and Strategic Development Incentive Schemes. Businesses, including small and medium-sized enterprises, continue to have access to a wide range of commercial spaces at different price points across the Central Area.