PUBLISHED ONMay 26, 2025 4:52 AMBYKhoo Yi-HangThe revision of height limits of buildings near airports is a "significant planning shift" that will potentially provide "opportunity and complexity for developers and homeowners", realtors have said.
Speaking with AsiaOne, Era Realty associate division director Asaph Mathew said that allowing buildings to be constructed taller will "naturally increase plot value in previously constrained zones like Changi, Loyang, and Upper East Coast".
On Thursday (May 22), Transport Minister Chee Hong Tat announced that buildings in close proximity to the airports can be built to up to 15 storeys taller, while industrial or commercial ones can be built up to nine storeys taller, come August.
Aside from Changi and Seletar airports, Singapore has military airbases in Paya Lebar, Sembawang, Changi and Tengah.
"This (revision) could trigger renewed interest in en-bloc sales, especially for ageing low-rise developments that now have vertical potential," Mathew said.
"For developers, it means better land optimisation and potentially higher profit margins. For homeowners, it could very well mean a windfall — especially if their existing plots were previously undervalued due to flight path limitations."
Areas near to these airports include Pasir Ris, Tampines, Simei, Bedok, Eunos, East Coast Park, Yishun, Ang Mo Kio and Yio Chu Kang, which could potentially be affected by this change.
"The existing requirements were set in the 1950s. Since then, there have been technological advancements in aircraft and air navigation systems," Minister Chee said, adding that the review looks to free up airspace for development while ensuring aviation safety.
This change could "open up new opportunities" for businesses and potentially increase overall housing supply, he added.
PropNex Realty associate division director Jason Wong said the opportunities stemming from this change translate into more jobs and more business, as well as renewed interest in those areas.
"It's a renewed en-bloc opportunity, because previously, because of these height restrictions, most of them (private home owners) would never go for en-bloc," he said.
With the potential to build higher, developers will be more incentivised to bid on these sites, he added.
Prices for homes may also "stabilise" in the long term, Wong also stated, explaining: "We are living in a land scarce country, so if we are able to have areas that we can build up higher, that means that supply can come up."
But he warned that the "windfall" will be limited to the areas where height restrictions will be lifted.
He also stated: "The general direction is that, yes, there will be a windfall for these owners, but it's provided they have owned these properties for quite some time. If they only bought it very recently, then probably they may not make as much."
Aviation height restrictions are just one of many factors determining allowable building heights in Singapore — others include infrastructure capacity to support developments and urban planning considerations to achieve a good living environment, according to The Business Times.
Wong, who is also in training to be a pilot, shared that it is unlikely for "freak accidents" (involving planes) to occur with the relaxation of height restrictions.
"(The regulations) are still very strict, just that it's more reasonable," he said, explaining that the height limit in the 1950s were implemented during a time when pilots utilised more manual means of determining altitude and flight direction.
"Now, we have much more advanced controls and automated systems," Wong added.
Mogul.sg's chief research officer Nicholas Mak described the maximum allowable building height near airport and airbases prior to revision as "rather low to be conservatively safe".
Mak, a former pilot, added: "A review of the allowable building height, especially of locations that are not in the flight path of the aircraft, is timely."
But impact of this revision will not take place immediately in August, and may not occur uniformly across Singapore, Mathew said.
"Developers will wait for more specific URA (Urban Redevelopment Authority) guidance and the eventual recalibration of plot ratios under Master Plan revisions," Mathew commented.
"The biggest moves will come when those two align."
He said there are some key areas to watch as the revision comes into play.
Changi Village and Loyang, for instance, consist older low-rise estates "with charm but limited upside" until now, and portions of Upper Changi Road East and Bedok South could see some rejuvenation or new mixed-use proposals.
Commercial floorspace in Changi North industrial clusters and parts of Bedok Industrial Park could undergo an uplift, possibly attracting logistics and aerospace players, he also said.
For Wong, a key region to note is the Kallang area near Paya Lebar, but he stated that it is difficult to precisely determine which area would "boom".
The URA's next Master Plan will provide further insight into this and reveal which areas will have stronger potential, he added.
"Ultimately, this isn’t just about taller buildings — it’s a shift in development philosophy for the east," Mathew explained.
"And the market is definitely paying attention."
Mak also shared that the revision will not be a "panacea" for the inactivity in the residential property en-bloc market.
"Several factors must fall in line to liven up the residential en-bloc sale market," he explained.
"One of the factors is an increase in the maximum plot ratio of privately-owned residential land.
"Second, homebuying demand must be very robust in the coming year or two. The existing property cooling measures are putting a cap on en-bloc sale land demand among developers."
Some of the land near airports and airbases in Singapore are not zoned for private residential or commercial development, he also revealed.
"So don’t get too excited by this announcement of raising the building height."
Mak also said that a large amount of the land around airports and airbases are State land, managed by the Government.
"Raising the allowable building height would benefit the Government’s coffers, not the private sector," he clarified.
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