Singapore opens more areas to hotel and hostel development

Singapore is easing planning restrictions on new hotels, hostels and serviced apartments in selected areas as part of broader efforts to support tourism growth and revitalise key precincts.

Announcing the changes during the debate on the Draft Master Plan 2025, National Development minister Chee Hong Tat said restrictions on new accommodation developments in the Upper Circular Road area will be lifted. Parts of Beach Road will also be opened up for new hotels, hostels and serviced apartments.

New accommodation developments will be allowed in the Upper Circular Road precinct near Singapore’s historic Boat Quay

The move follows a review by the Urban Redevelopment Authority (URA) and forms part of broader efforts to refresh older districts and create new opportunities for tourism-related development.

The Ministry of National Development said the restrictions were introduced more than a decade ago to manage the concentration of tourist accommodation in selected areas. With changing tourism patterns and redevelopment needs, the government has decided to relax the controls.

Located near the Singapore River and Boat Quay, the Upper Circular Road area is expected to benefit from greater visitor activity as new accommodation options are introduced. The district is known for its conserved shophouses, dining outlets and nightlife offerings.

Beach Road is also likely to attract renewed interest from hospitality developers. The area has undergone substantial transformation in recent years through a mix of office, residential, lifestyle and hotel projects.

Local media reports noted that the policy shift could unlock redevelopment opportunities for older buildings and support additional room supply in central locations.

The announcement comes as Singapore advances plans under the Draft Master Plan 2025, which aims to strengthen the city’s attractiveness as both a business and leisure destination while enhancing the vibrancy of key precincts.

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