URA revises guideline on proportion of bigger units in non-landed residential developments in Central Area
As the placing of the Central Area has definitely moved to settle down, work including enjoy, there have been cooperative attempts to offer more mixed utilizations in the Central Area to urge more live-in population plus inject vibrancy.
The latest standards will place on development requests sent to URA from Jan 18, 2023, onwards.
URA has already observed a persistent pattern in decreasing DU measurements for developments in the Central area, and has recently introduced the revised standard to make sure a good mix of DU dimensions throughout the Central Area.
The Central Area extends 11 Planning Areas: Outram, Gallery, Newton, River Valley, Singapore River, Marina South, Marina East, Straits View, Rochor, Orchard and Downtown Core.
“The threshold of 70 sq m is an affordable dimension for limited households, taking into account the tighter space restraints in the Central Area,” the circular says. URA did not enforce a limit on the entire number of DUs in the Central Area as latest developments are much less most likely to put a stress on neighborhood facilities. Meanwhile, property developers are encouraged to give a great mix of DU scales to accommodate the requirements of all sections of the market, including bigger households, as well as avoid a disproportionately big quantity of smaller DUs.
All new apartments, condominiums and residential aspects of marketable and mixed-use projects will be needed to ensure an at least of 20% of dwelling units (DUs) with a net inner area of at least 70 sq m (753.5 sq ft), according to a URA circular published on Oct 18.
However, Lee anticipates some of the en bloc spots in the Central Area together with the Marina Gardens Lane to become influenced by the updated guidelines. Property developers might probably re-assess possible proposals for en bloc sites because of cost factors to consider, influencing the growth rate of en bloc places in the Central Area.
In 2018, URA revised guidelines on maximum allowed number of DUs in non-landed household projects outside the Central Area. The maximum allowable number of DUs is derived by splitting the proposed establishment gross floor area by 85 sq m. URA claims it will remain to monitor in order to examine the requirements occasionally, taking into account aspects such as lifestyle shifts and infrastructural developments.
Lee Sze Teck, senior analysis director at Huttons, anticipates somewhat larger units later on however views the total influence on the market as minimal. The majority of the projects in the Central Area remain in compliance with this brand-new standard, he notes. Investors may have fewer choices of smaller sized units in the future as well as might will have to resort to wanting to the secondhand market, driving up prices of much smaller units.
