A new Urban Redevelopment Authority (URA) policy to tighten approval of new development applications for hotel, boarding house and backpackers' hostel uses will likely dampen demand for contiguous shophouses - unless they already have prior approval for such use.
In a circular last week, URA noted that hotels, boarding houses and backpackers' hostels - which provide accommodation for visitors to Singapore - are generally found in commercial areas. "However, such uses should not dominate and displace other commercial activities in these areas. In addition, they are generally not permitted within or at the fringe of residential estates so as to protect the amenity of nearby residents," URA said.