Arcachon
21-10-18, 22:31
Key highlights:
📌Announced by Urban Redevelopment Authority with effect 17 January 2019
📌Average size of units of new private developments outside of Central Singapore will have to be at 85 sqm, increased from 70 sqm
📌9 locations will be subject to even more stringent minimum average requirement of 100 sqm
📌Locations are Marine Parade, Joo Chiat-Mountbatten, Balestier, Telok Kurau-Jalan Eunos, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang.
How does this impact future private new launch developments? .
📌There will be significantly 18% and 30% lesser units in future developments respectively.
📌Era of compact 1 bedroom to 2 bedroom units in new launches is over.
📌Due to the minimum requirement mandated by URA, developers of future developments will primarily build more larger units (3BR or bigger) and they will build lesser small (1BR-2BR) units.
📌Because developers will want to continue to maximize the land use and also maximize their profits, it does not make sense for developer to build more 1 or 2BR units. See example 1A below.
📌While the psf is speculated to face pressure, the smallest unit size will possibly start from 1 bedroom + study 500 sqft onwards, which increases the overall property price, which may affect affordability for buyers who are looking to acquire their 1st property or 2nd property for investment
📌Supply and demand: Lesser smaller units may also result in the demand for current smaller units take-up rate to go up
Example 1A:
Development 1A has a site area of 13,935 sqm (150,000 sqft) and a plot ratio of 2.4.
Under the previous rule: (13,935 sqm x 2.4) ÷ 70 sqm = 477 maximum units
Under 85 sqm ruling: (13,935 sqm x 2.4) ÷ 85 sqm = 393 maximum units
Under 100 sqm ruling: (13,935 sqm x 2.4) ÷ 100 sqm = 334 maximum units
Insider info:
📌My insider contacts within developer organisations has informed me that all of them held emergency meeting immediately after the news broke yesterday
📌Many hinted that prices for small units of [unnamed] developments will increased within the next few weeks
📌Prices of the larger units will also increased to respect the size difference between the smaller and larger units
How does this impact you as a potential buyer? .
📌For buyers who are intending to purchase 1 or 2 bedroom units, you may be priced out since the prices of the most affordable unit in future new launches will be higher because the sizes are bigger, or that there is only a few small units launched per development
📌Because there are lesser units in future development launches, the maintenance fees may also be slightly higher.
If you want to consider buying a 1BR unit for investment, or a 2BR for own stay, this is the best time before any future price increase on the existing developments. Contact me for recommendation(s), info, floor plans, pricing on current new launch developments
Source:
The Business Times, 18 Oct 2018
https://www.businesstimes.com.sg/real-estate/bigger-average-unit-size-expected-to-temper-condo-prices
📌Announced by Urban Redevelopment Authority with effect 17 January 2019
📌Average size of units of new private developments outside of Central Singapore will have to be at 85 sqm, increased from 70 sqm
📌9 locations will be subject to even more stringent minimum average requirement of 100 sqm
📌Locations are Marine Parade, Joo Chiat-Mountbatten, Balestier, Telok Kurau-Jalan Eunos, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang.
How does this impact future private new launch developments? .
📌There will be significantly 18% and 30% lesser units in future developments respectively.
📌Era of compact 1 bedroom to 2 bedroom units in new launches is over.
📌Due to the minimum requirement mandated by URA, developers of future developments will primarily build more larger units (3BR or bigger) and they will build lesser small (1BR-2BR) units.
📌Because developers will want to continue to maximize the land use and also maximize their profits, it does not make sense for developer to build more 1 or 2BR units. See example 1A below.
📌While the psf is speculated to face pressure, the smallest unit size will possibly start from 1 bedroom + study 500 sqft onwards, which increases the overall property price, which may affect affordability for buyers who are looking to acquire their 1st property or 2nd property for investment
📌Supply and demand: Lesser smaller units may also result in the demand for current smaller units take-up rate to go up
Example 1A:
Development 1A has a site area of 13,935 sqm (150,000 sqft) and a plot ratio of 2.4.
Under the previous rule: (13,935 sqm x 2.4) ÷ 70 sqm = 477 maximum units
Under 85 sqm ruling: (13,935 sqm x 2.4) ÷ 85 sqm = 393 maximum units
Under 100 sqm ruling: (13,935 sqm x 2.4) ÷ 100 sqm = 334 maximum units
Insider info:
📌My insider contacts within developer organisations has informed me that all of them held emergency meeting immediately after the news broke yesterday
📌Many hinted that prices for small units of [unnamed] developments will increased within the next few weeks
📌Prices of the larger units will also increased to respect the size difference between the smaller and larger units
How does this impact you as a potential buyer? .
📌For buyers who are intending to purchase 1 or 2 bedroom units, you may be priced out since the prices of the most affordable unit in future new launches will be higher because the sizes are bigger, or that there is only a few small units launched per development
📌Because there are lesser units in future development launches, the maintenance fees may also be slightly higher.
If you want to consider buying a 1BR unit for investment, or a 2BR for own stay, this is the best time before any future price increase on the existing developments. Contact me for recommendation(s), info, floor plans, pricing on current new launch developments
Source:
The Business Times, 18 Oct 2018
https://www.businesstimes.com.sg/real-estate/bigger-average-unit-size-expected-to-temper-condo-prices