78 Shenton Way May Change Hands as CBD Redevelopment Momentum Builds

Redevelopments like 78 Shenton Way are part of a wider shift reshaping Singapore’s CBD. As older office buildings make way for mixed-use and residential concepts, the city centre is gradually becoming a place to live, not just work.

This article looks at what the 78 Shenton Way site represents in that broader context, and how similar transformations nearby, In this context, Newport Residences stands out as one of the few freehold residential offerings within Singapore’s CBD, reflect changing buyer demand for freehold homes in the downtown core.

Buyers comparing entry levels can refer to the Newport Residences price guide to understand how current pricing stacks up against other central district launches.

Market attention is turning to 78 Shenton Way, where a major office asset in Singapore’s Central Business District could soon be sold, reinforcing the growing redevelopment trend across the southern CBD corridor.

Allgreen Properties, part of the Kuok Group, is understood to be close to acquiring the property at a price believed to be in the low S$600 million range, according to market sources. The site is currently owned by a fund managed by PGIM Real Estate, which is said to be exiting the investment at a loss after acquiring it in 2018.

Located next to the upcoming Prince Edward Road MRT station on the Circle Line, 78 Shenton Way comprises two office towers and sits on a 99-year leasehold site with about 56 years remaining. The asset has long been viewed as a strategic redevelopment candidate under the Urban Redevelopment Authority’s CBD Incentive Scheme.

The site already carries an existing gross floor area of about 494,000 square feet, exceeding the base plot ratio under the URA Master Plan. Under the incentive scheme, redevelopment could allow for a further increase in gross floor area of up to 25 to 30 per cent, depending on the final approved use mix. Residential-led or mixed-use schemes with commercial components may qualify for the highest intensification.

The transaction, if completed, would mark another example of institutional owners reassessing older CBD office assets as the city centre undergoes structural change. Several landlords are repositioning or divesting assets amid evolving work patterns, rising capital costs, and new planning incentives that encourage residential and mixed-use redevelopment.

This shift is particularly relevant as Singapore’s CBD transitions toward a more liveable, mixed-use environment. With new MRT infrastructure, lifestyle amenities, and residential developments entering the area, land values are increasingly driven by long-term redevelopment potential rather than pure office income alone.

For homebuyers, these moves underscore the broader transformation taking place around Anson Road, Shenton Way, and the Greater Southern Waterfront. New residential developments in this zone benefit from both infrastructure upgrades and policy-driven rejuvenation that is reshaping the downtown skyline.

Projects such as Newport Residences, located nearby along Anson Road, reflect this shift toward integrated, future-ready city living. As redevelopment activity intensifies, centrally located homes within walking distance of MRT stations are likely to remain highly sought after by both owner-occupiers and investors.

As more legacy office sites come under review, the CBD’s residential landscape is expected to evolve steadily over the coming decade, supported by planning flexibility, transport connectivity, and renewed demand for city-centre living.