Market-led policy measures for urban redevelopment in Singapore

Abstract

This paper analyses the effectiveness and impacts of two market-led policy measures for stimulating private housing redevelopment in Singapore. The first measure accorded betterment potential to sub-optimally used land through density incentives. Subsequently, enabling legislation was enacted to facilitate site amalgamation. Using data from 1994 to 2000, the measures successfully induced the supply of privately owned land and site assembly through en bloc sales. However, the urban intensification strategies have resulted in unintended and adverse consequences such as infrastructural pressure, loss of environmental character and accelerated economic obsolescence. Moreover, policy delivery that relies on private sector capital is highly dependent on market conditions. © 2003 Elsevier Ltd. All rights reserved.