Some measures for shoeboxes announced

[bargain hunter]

http://www.todayonline.com/Hotnews/E...-area-from-Nov

http://www.ura.gov.sg/pr/text/2012/pr12-98.html

[bargain hunter]

News Releases


4 Sep 2012

Maintaining a good variety of housing sizes

From 4 November 2012, the total number of dwelling units that can be built on a development site for non-landed private residential developments outside the Central Area will be capped, when new guidelines issued by the Urban Redevelopment Authority (URA) take effect.

The new guidelines will discourage new developments consisting predominantly of “shoebox” units outside the Central Area, but at the same time give flexibility to developers to offer a range of homes of different sizes to cater to the needs of various demographic groups and lifestyles.

A Growing Supply of Shoebox Units

An increasing number of shoebox units are being built in some new private housing projects. The stock of completed shoebox units will increase more than four-fold from about 2,400 units as at the end of 2011 to about 11,000 units by the end of 2015. This trend has raised some concerns, especially in the suburban areas where larger households and families typically reside, and where the demand for shoebox units remains untested.

URA has been monitoring public discussions and feedback on shoebox units. The feedback indicates that shoebox units appeal to some people from small households such as singles, couples without children and retirees. However, others are concerned that shoebox units do not meet the needs of larger households and are not conducive for couples to have children.

On balance, URA agrees that having a certain proportion of shoebox units in our housing stock does indeed help to cater to people with different needs and lifestyles. The situation that we should avoid is for shoebox units to form a disproportionately large portion of the housing stock in Singapore. Increasingly we are seeing some new housing developments consisting predominantly of shoebox units – as high as 50% to 80%. A large concentration of such developments can strain the local road infrastructure as the number of housing units ends up much higher than what was originally planned for.

Moderating Shoebox Developments Outside the Central Area

Taking the above into consideration, URA has adopted a calibrated approach that moderates excessive development of shoebox units, while still allowing some smaller housing units to be built to meet diverse lifestyle choices.

All new non-landed private residential developments in suburban areas, namely outside of the Central Area, will be subject to a cap on the dwelling units (DUs) based on the following formula:

Smaller-sized units can still be developed under these guidelines, but at a more moderate proportion and pace. The new guidelines are applied only to areas outside the Central Area, where housing tends to cater mainly to larger households and families. More details can be found in the URA circular at http://www.ura.gov.sg/circulars/text/dc12-13.htm.

For areas which face more severe infrastructure conditions, a more stringent cap on the total number of dwelling units will apply. These include areas in Kovan and Joo Chiat/Jalan Eunos. A similar cap is already in place for Telok Kurau. More details can be found in the URA circular at http://www.ura.gov.sg/circulars/text/dc12-14.htm.

The URA will monitor and review the guidelines periodically, taking into consideration various factors such as socio-demographic and lifestyle changes.

[minority]

hurray.... no more destruction of our housing.

[Kanarazu]

Sorry my duplicate posting

[Kanarazu]

Wonder what's the rationale why bonus GFA is not considered?

[bargain hunter]

http://www.ura.gov.sg/circulars/text/dc12-13app1.pdf

for e.g., according to this map, some parts of D8 will be considered central area, while some parts of bukit timah D10 are NOT considered central area.

[bargain hunter]

bonus gfa not considered in calculation means smaller number of units = smaller number of shoeboxes mah. good wat.

Wonder what's the rationale why bonus GFA is not considered?

[Ringo33]

I am not sure this will be good or bad news for existing OCR MM owner. One thing for sure is that developers will likely to bid lower for land outside CCR, so average PSF price is likely to come down. Will developers now switch their MM focus to CCR?

I presume this will not affect those land that have been sold to developer.

[Laguna]

aiyo, another scholar's idea
game of averaging

cap the number of units rather than the size, so build some big ones, then u still can hv some ones

good for only those with the entire project of MM units only

[silver023]

Using demand-supply theory, means OCR MM unit prices will increase?

[carbuncle]

I was dozing off when the circular was published lol. In summary, the Telok Kurau computation over 100sqm will be applied to Kovan and Joo Chiat the other two hotspots. For all others outside Central area, computation will be based off 70sqm.

Existing MMs in those named areas - HUAT AH!!!!!!!!!!!!!! No more competition liao yahoo!!! Next time all will need to rent 3.2k above for the 'at least 70sqm' units.

[phantom_opera]

Don't be too happy first bro carbuncle.

Take example of the Tanah Merah site recently won by Fragrance / World Class

MAXIMUM PERMISSIBLE GFA : 39,196 m²

39,196 / 70
= 560 units

so u either build 560 units 70sqm or 260 units 45sqm + 260 units 95sqm

or 186 units 45sqm, 186 units 70sqm, 186 units 95sqm

this calculation does not include bonus for balconies/AC of course

Still can build 200 units 45sqm MMs Wonder Fragrance will be affected in the TM plot, original plan must be building 1000 40sqm units

[windcar]

http://www.ura.gov.sg/circulars/text/dc12-13app1.pdf

for e.g., according to this map, some parts of D8 will be considered central area, while some parts of bukit timah D10 are NOT considered central area.

In fact MOST parts of Bukit Timah is not considered central. Even Robin Road and part of Steven road are not considered central. But some parts of East coast Park way is considered central. Crazy.

[carbuncle]

Don't be too happy first bro carbuncle.

Take example of the Tanah Merah site recently won by Fragrance / World Class

MAXIMUM PERMISSIBLE GFA : 39,196 m²

39,196 / 70
= 560 units

so u either build 560 units 70sqm or 260 units 45sqm + 260 units 95sqm

or 186 units 45sqm, 186 units 70sqm, 186 units 95sqm

this calculation does not include bonus for bIalconies/AC of course

Perfect

Aiyo. Why I not happy?? Whichever, at least it will never be 560 units 45sqm as I expected lol. DEFINITELY less competition going forward.

[phantom_opera]

FEO projects will pass with flying colors ... they are about right

IMO, this is mini CM for 2/3brs as supply will increase

[Ringo33]

Using demand-supply theory, means OCR MM unit prices will increase?

lack of record breaking psf price (usually from new development) will usually have a cooling effect.

[phantom_opera]

If you are Fragrance, would u build

Option A: 560 X 70 2br (dangerous bet)

Option B:

186 X 45 1br
186 X 70 2br
186 X 95 3br (quantum too high, hard to sell)

Option C:

280 X 60 2br
280 X 80 3br

difficult to decide leh

2br MMs 646sqft here to stay liao this policy has the problem of encouraging small 2brs 6xxsqft / 3brs 8xxsqft as in option C

[Ringo33]

If you are Fragrance, would u build

Option A: 560 X 70 2br (dangerous bet)

Option B:

186 X 45 1br
186 X 70 2br
186 X 95 3br (quantum too high, hard to sell)

Option C:

280 X 60 2br
280 X 80 3br

difficult to decide leh

2br MMs 646sqft here to stay liao this policy has the problem of encouraging small 2brs 6xxsqft / 3brs 8xxsqft as in option C

As long as the quantum remain affordable, people will still buy. But with the new formula, average quantum will have to go up.

[bargain hunter]

not really for east coast, its just the boundary of ECP right? purposely does not include tanjong rhu.

yeah, in my rush just now, i didn't write that most parts of bukit timah. anyway, point is, they want to keep bukit timah family residential.

most parts of the land cost in their definition of Central Area is too expensive for MM to be viable. e.g. the future marina area! Looks like for central area, MM will stay at Sophia/wilkie/mackenzie, the little india area and some very limited parts of river valley.

In fact MOST parts of Bukit Timah is not considered central. Even Robin Road and part of Steven road are not considered central. But some parts of East coast Park way is considered central. Crazy.

[phantom_opera]

Kenobi-wan was quite relaxed the last time he mentioned about MMs ... why suddenly the policy to curb MMs?? Must be bid price of 700psf and 676psf in JLD and TM that alarm him ... especially when Fragrance/World Class Land will probably build 1000 x 39sqm MMs in TM

[Kanarazu]

Maybe we will see more dual key units in future.

[bargain hunter]

either FEO is consulted or the URA use their model hahahahahahaha.

keep the units at >500 sq ft BUT WITH THE LOFT to make it attractive and build a variety of other units. townhouses would have been helpful but no longer possible?

oh no, now there won't be MM over supply but LOFT/FURNITURE DECK, whatever u call it oversupply!!!

FEO projects will pass with flying colors ... they are about right

IMO, this is mini CM for 2/3brs as supply will increase

[radha08]

Kenobi-wan was quite relaxed the last time he mentioned about MMs ... why suddenly the policy to curb MMs?? Must be bid price of 700psf and 676psf in JLD and TM that alarm him ... especially when Fragrance/World Class Land will probably build 1000 x 39sqm MMs in TM

Obi-Wan Kenobi is first introduced in Star Wars Episode IV: A New Hope (1977), where he is played by Alec Guinness and is first seen rescuing Luke Skywalker (Mark Hamill) from a group of Tusken Raiders. Obi-Wan Kenobi takes Luke to his hut, where he reveals that he knew Luke's father, Anakin Skywalker, and served with him in the Clone Wars. He gives Anakin's lightsaber to Luke, having told him that Darth Vader (David Prowse/James Earl Jones) "betrayed and murdered" Anakin. Suddenly, R2-D2 plays a message from Princess Leia Organa (Carrie Fisher) that pleads for Obi-Wan Kenobi to get the droid to her father on Alderaan. Obi-Wan Kenobi offers to instruct Luke in the ways of the Force and asks him to join him on the quest; but Luke is only persuaded when his aunt and uncle are slain by the Empire, whereupon Obi-Wan Kenobi takes him to deliver the message to Alderaan.

[carbuncle]

Have you not heard of latest 420sf 2br? lol.

Anyway you just watch lor there will be proliferation of 51sqm TWO bedder.

[eng81157]

less MMs can possibly have an adverse effect too. less supply, same amount of demand = increasing price!!!

if i'm the developer, i up my MM psf, citing limited supply. since i up my MM's psf, i also do likewise to my 2/3/4 BRs. in the end, doesn't help to stablilize property prices.

IMHO, KenoBiWan should order a re-tender if the bidding gets out of hand. but hey, perception of costs is relative, cos brompton bike's and herman miller's are considered affordable

[phantom_opera]

Maybe we will see more dual key units in future.

unlikely, quantum too big

[Ringo33]

less MMs can possibly have an adverse effect too. less supply, same amount of demand = increasing price!!!

if i'm the developer, i up my MM psf, citing limited supply. since i up my MM's psf, i also do likewise to my 2/3/4 BRs. in the end, doesn't help to stablilize property prices.

IMHO, KenoBiWan should order a re-tender if the bidding gets out of hand. but hey, perception of costs is relative, cos brompton bike's and herman miller's are considered affordable

you can only up your OCR mm price to a certain level before buyers will find better value in MM in CCR.

[phantom_opera]

Kenobi-wan is old and fragile, no match for the evil Property Empire who is secretly building the next generation of MMs called Death Star which will destroy the lovely planet called Singapore

[windcar]

I took a look at the formula again. This means that the average size of each units allowed is 70sqm aka 753 sqft if bonus GFA is 0.
I would say it does not affect developer that much. Have some units at 1300sqft, then a few big ones at 1800sqft, and developers can still build many many SOHO and MM units.
Anyone checked how many units there are at watertown, and its total GFA?

[eng81157]

you can only up your OCR mm price to a certain level before buyers will find better value in MM in CCR.

really?! Look at ECo and Watertown going at 1200psf and beyond.

http://www.ura.gov.sg/realEstateWeb/...ubmitSearch.do

Nathan residences - FH, D9 going for est. 1600psf

This only shows one thing - stupidity (and carrotcake-ness) knows no bounds