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Thread: Downtown Line costs soar by more than 70 per cent

  1. #1
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    Default Downtown Line costs soar by more than 70 per cent

    http://motoring.asiaone.com/Motoring...30-380476.html

    Sharp rise in construction cost and changes to project push bill to $21b.

    Thu, Nov 01, 2012
    The Straits Times

    A spike in construction cost has contributed to the MRT Downtown Line bill rising by more than 70 per cent from an original estimate of $12 billion to $20.7 billion.

    Half of this $8.7 billion increase was attributed to a sharp rise in construction cost, with the other half linked to a number of changes to the project.

    This was revealed to The Straits Times by the Land Transport Authority (LTA), which also said it is taking steps - like inviting more firms to bid for projects - to rein in prices.

    The Downtown Line will link the north-western and eastern parts of Singapore to the Marina downtown, with the first stage due to open next year, and two other stages in 2015 and 2017.

    When the line was announced in 2008, the LTA said that it would cost $12 billion. The latest price tag appeared in this year's Budget statement.

    The changes adding to costs include expanding the capacity of the depot in Gali Batu near Woodlands, more stringent safety and regulatory requirements, and more connections to nearby developments to make the line more accessible.

    For example, Downtown Line Stage 3's Tampines and Expo stations will each have an additional entrance.

    The project is also slightly longer than when it was first announced in 2008. It is 42km long, with 34 stations - from the original 40km and 33 stations.

    But construction cost remains the single biggest factor for the cost spiral. LTA deputy chief executive Chua Chong Kheng said that the increase in construction cost from late 2007 to mid-2008 was "quite significant".

    He attributed this partly to the deluge of infrastructural projects locally as well as overseas - especially in China - which caused a shortage of building materials, equipment and manpower.





    20,000,000,000/1000,000=20,000 per HDB unit.
    Last edited by Arcachon; 01-11-12 at 23:09.

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    hey bro long time no hear where u been....france...

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    Quote Originally Posted by radha08
    hey bro long time no hear where u been....france...
    Getting cold here, raining everyday.











    Last edited by Arcachon; 01-11-12 at 23:19.

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    oh wow...getting crowded here especially at new launches..cute i like that certificate on the car window...nothing like our COE i bet..

    wow nice pics...here we only got mrt and hdb....at duxton to rival that...

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    Quote Originally Posted by radha08
    oh wow...getting crowded here especially at new launches..cute i like that certificate on the car window...nothing like our COE i bet..

    wow nice pics...here we only got mrt and hdb....at duxton to rival that...
    Brought 4,000 euro 5 years ago.

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    What will happen after 2016? Property in Singapore will be cheaper because the gov spend too much on infrastructure or cost more.

    A spike in construction cost has contributed to the MRT Downtown Line bill rising by more than 70 per cent from an original estimate of $12 billion to $20.7 billion.

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    Quote Originally Posted by Arcachon
    What will happen after 2016? Property in Singapore will be cheaper because the gov spend too much on infrastructure or cost more.

    A spike in construction cost has contributed to the MRT Downtown Line bill rising by more than 70 per cent from an original estimate of $12 billion to $20.7 billion.
    Construction costs will go up more over the next few years. Developers have to price in such increases to maintain profit buffer. Future buyers are caught in an upward spiral.

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    will chicken rice ever cost $1 again......only way is up up up...maybe a few hiccups on the way...oh by the way ERP just hit $5 in some parts...

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    Quote Originally Posted by radha08
    will chicken rice ever cost $1 again......only way is up up up...maybe a few hiccups on the way...oh by the way ERP just hit $5 in some parts...
    Next year we might be seeing an influx of foreigners or companies, as Europe retrenchments continue. It should be good for rental. I thought you should be buying instead of waiting. The profile of the population and economy structure have changed. I think overall there should be an upward pressure on prices.

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    Quote Originally Posted by hyenergix
    Next year we might be seeing an influx of foreigners or companies, as Europe retrenchments continue. It should be good for rental. I thought you should be buying instead of waiting. The profile of the population and economy structure have changed. I think overall there should be an upward pressure on prices.
    coming soon...

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