URA tightens rules to curb proliferation of shoebox units

Starting on January 17, 2019, the allowable maximum units of a private housing development in the centre of the city would be lower down – efficiently preventing developers from making too many shoebox units.

Under the new policy set by Urban Redevelopment Authority or URA, October 17, Wednesday. It covers various new sites such as Balestier, Marine Parade and Loyang. The said areas will also be subject to a more rigid requirement because of the serious strain wherein a cumulative output of latest projects impacts in local infrastructure.

URA announced the new guidelines way back 2012 with the goal of regulating the imprudent development of the trendy shoebox units. The stricter policy comes after the authorities have noticed the melting sizes of units over the latest private housing developments.

The Group Director of Development Control at Urban Redevelopment  Authority, Ms Goh Chin Chin, told that the new guidelines play a role in regulating potential strains over local infrastructure and protect the livability of residential developments.

” This somehow would  inspire the developers to offer  more even-handed mix unit sizes that will answer the different needs of residential buyers, including huge families,” Ms Goh further added.

Recently URA sets the highest permissible number in residential units for outside developments of central areas by dividing the recommended building total floor area into 70 sq m. Under the new rule, the division would be like 100 sq m and 85 sq m for nine areas.

These cover the areas around, Loyang, Shelford, Kovan How Sun, Pasir Panjang, Stevens -Chancery, Marine Parade, Balestier, Joo Chiat-Mountbatten and Telok Kurau-Jalan Eunos. At present, it covers four areas only, Jalan Eunos, Joo Chiat, Kovan and Telok Kurau. The said four are subject to rigid guidelines.

Mixed-use developments are subject for compliance with the new policy or guidelines. Developers are urged to build different sizes of the proposed housing units to address the urgent demand of the real estate market, URA explained.

In 2012, Minister Khaw Boon Wan, the Minister for National Development, adduce the example area such as the Telok Kurau which undergone massive building units of tiny shoeboxes which turned out to be a disadvantage only because it causes an intense traffic jam, shortage of parking areas plus rampant double-parking.

Mr Khaw said, ” After brainstorming with the stakeholders, the URA come up with the idea to proceed but in a sagacious way which means, there would be no over-regulation or stifling over the authenticity of developers.”

The Urban Redevelopment Authority said, since ages like 2012, units size distribution were already closely monitored to serve the various demands as much as the figure of newly build units in specific areas which can only be a factor of strain around local infrastructure.

While solution created sets the curb as to the number of housing units, the confirmed number that is subsidized in any project will be checked based on the ongoing area conditions, site context and the effect over local infrastructure, the URA  explained.

Also, it will measure the whole layout, unit sizes and design of the property proposals and some more requirements might be needed to protect and preserve the quality of living.

An analyst told the credible TODAY about the recent policies manifested on how the government monitors closely the real estate sector and ready to create guidelines adjustment when needed.

Last July, the authorities announced the cooling measures in form of strict borrowing boundaries and bigger stamp duty rates following the hike of private development which is only 7 per cent for half a year.

Singapore’s chair of research Knight Frank Singapore, Lee Nai Jia told that the fad of shoebox units are gettings slimmer and will reach to a point where it has to be stopped to avoid a surplus.

The CBRE head of research for Southeast Aisa and Singapore, Mr Desmond Sim, stressed that unit sizes of new developments are turning slimmer.

Smaller units seem to demand higher every square foot prices thus advantageous for property developers to construct and sell.

Buyers for that specific units are easily attracted by the lower prices compared to huge units.

Mr Ong Teck Hui, the national director for research and consultancy of JLL, explained that the rise of average unit size from 85 sqm to  70 sqm yields to a lesser number of units constructed in residential development, as much as units which have wider floor areas.

“This is somewhat having the effect of lowering the standard selling price around residential development. With a bigger floor area, sale price of psf of a particular condominium or apartment will go down while the developers will do their best to sustain an affordable price per unit.

This would likely moderate the fad of rising prices, Mr Ong further added.