CONSERVATION IN TANJONG PAGAR - AN ECONOMIC PERSPECTIVE

Abstract

The concept of recycling architecturally sound and historically significant old buildings has attracted an increasing amount of attention and interest during the past few years. This increased interest has resulted in a shift from preservation of isolated buildings in the past, to conservation of an entire area today. To date approximately 1800 shophouses are earmarked for conservation under the government's plan to conserve Singapore's central area. One of the distinctive changes in the approach towards conservation is the call for private sector participation. The government, recognising that it cannot shoulder the burden of conservation alone has challenged private entrepreneurs to participate in conservation projects which it claims has good investment potential. From the private sector's viewpoint, the primary concern and indeed a central source of controversy is the question of financial feasibility and profitability. This study seeks to examine the plan for conserving Tanjong Pagar and to determine the financial feasibility of conserving a unit in Tanjong Pagar. It was found that it would be economically viable to conserve a unit and furthermore the site and market analysis has shown that the prospect for the area is good. However, it must be emphasised that before considering conservation, the private entrepreneur must conduct a thorough appraisal of the project.