SINGAPORE: Far East Shopping Centre, nestled along Orchard Road in Singapore, once stood as a prominent landmark. However, today, it faces a stark reality—a 42-year-old mall struggling with poor foot traffic.
A CNBC story reveals that despite its prime location — just a five-minute walk from the bustling Orchard MRT station — the centre’s vibrant retail atmosphere has faded. A significant portion of its units remains vacant, and those occupied tend to be maid agencies rather than the upscale retailers and restaurants expected in a district known for luxury shopping.
This sense of decline is not unique to Far East Shopping Centre. Many older malls along Orchard Road, particularly those in the upper stretch near the posh Tanglin residential area and the Singapore Botanic Gardens, are similarly grappling with dwindling foot traffic.
While Orchard Road is Singapore’s main shopping artery, much of the action happens in the central stretch, where malls are directly connected to the MRT stations through underground walkways. Unlike these high-traffic hubs, Far East Shopping Centre lacks such connectivity, contributing to its diminished appeal.
Change on the horizon
A major revitalization project is underway, spearheaded by Singapore’s Urban Redevelopment Authority (URA), which has been offering financial incentives to redevelop the older buildings along Orchard Road. However, transforming these properties will require substantial investment—likely running into billions of dollars—due to the high cost of land and construction in the city-state.
Major redevelopments
In the Orchard Road area closer to Tanglin, significant changes are already in the works. Hotel Properties Ltd (HPL), controlled by billionaire Ong Beng Seng, received approval last year to demolish three of its properties and replace them with a sprawling 114,150-square-metre mixed-use development.
This new project will feature a hotel, residential units, retail outlets, and office space, and will stretch across two towering buildings.
Among the properties set to be redeveloped are the Voco Orchard Hotel and Forum The Shopping Mall, with the Forum alone valued at nearly 950 million Singapore dollars in 2023.
Meanwhile, City Developments Ltd (CDL), one of Singapore’s largest real estate firms, has purchased the remaining units of Delfi Orchard, a 40-year-old, 11-story building, in a deal worth 439 million Singapore dollars.
CDL is expected to redevelop Delfi Orchard alongside the nearby Orchard Hotel and its adjoining mall, owned by CDL Hospitality Trusts, a real estate investment trust managed by CDL.
A new vision for Tanglin
The URA envisions the Tanglin area as a mixed-use neighbourhood with an emphasis on lifestyle, arts and culture. This rejuvenation plan aims to attract both locals and tourists, offering enhanced cultural and artisanal experiences that cater to the evolving needs of visitors.
By 2025, the URA will begin work on an ambitious plan to revamp Orchard Road, including a 6-kilometre-long “green connection” linking key green spaces such as the Singapore Botanic Gardens and Istana Park. This initiative aims to foster a more pedestrian-friendly environment and revitalize the entire area.
One developer pushing for this transformation is Pacific Eagle Real Estate, which is redeveloping Tanglin Shopping Centre. The company acquired the property in 2022 for S$868 million and plans to turn it into a vibrant destination with covered walkways and experiential spaces that go beyond traditional retail and dining.
Challenges to redevelopment
Despite the promising developments, several hurdles remain. One of the primary challenges lies in the fragmented ownership of many older commercial buildings, which are divided into small strata units owned by different individuals.
To proceed with a redevelopment, at least 80% of the strata owners must agree to the sale, and they must reach a consensus on the asking price, a process that can be time-consuming and complex.
Additionally, developers must navigate the URA’s Strategic Development Incentive Scheme, which encourages property owners to redevelop their assets. The scheme is designed to support the creation of new lifestyle offerings, retail spaces, and improved pedestrian connections.
However, negotiations can be challenging, as seen earlier this year when the collective sale of Far East Shopping Centre fell through due to a failure to secure URA approval for an increase in the development’s floor area.
The need for comfort in the tropics
One key aspect of the transformation that architects are emphasizing is the need for comfort in Singapore’s hot and humid climate.
Tina Qiu, director of PLP Architecture, suggests that the introduction of sheltered walkways, such as animated canopies and retractable umbrellas, would help shield pedestrians from the relentless sun and frequent showers.
These features would not only provide comfort but also contribute to the streetscape, creating an environment that attracts visitors year-round.
Qiu highlights the advantage of malls that are directly connected to Orchard MRT, where shoppers can move from one venue to another in an air-conditioned environment, offering a more comfortable experience compared to those located in the Tanglin area, which is exposed to the elements.
Looking ahead
The revitalization of Orchard Road, particularly the older stretches near Tanglin, promises to breathe new life into this iconic part of Singapore. While the road to redevelopment may be fraught with challenges, the vision for a more vibrant, arts-infused, and pedestrian-friendly environment is becoming a reality.