The Urban Redevelopment Authority has approved 10 applications from shop-house owners to use the upper floors of their property as offices and commercial schools.
This follows the relaxation of rules to allow the premises to be used as offices and commercial schools.
Analysts said the take-up rate is encouraging.
Using shop-houses as business space is becoming increasingly popular.
But the number of such units has not been increasing.
Analysts said this shortage has caused shop-house rentals in the CBD area to rise by some 20 to 30 per cent over the past two years.
Renting a shop-house’s first floor costs some S$7-S$10 per square foot while the second floor costs S$4-S$6 per square foot.
Currently, shop-house owners are allowed to use their first floor for any type of business activity.
The upper floors are restricted to home offices, student care centres, aged homes, community institutions, hostels, serviced apartments and hotels.
With the new rules, shop-house owners have more options to use their space.
But they will also need to get permission from the Land Transport Authority to have either an office or commercial school on their upper floors. This is to prevent traffic congestion around the property.
Source : CNA – 2012 Jun 7
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