Page 1 of 6 12345 ... LastLast
Results 1 to 30 of 157

Thread: slight clamping down on MM

  1. #1
    Join Date
    May 2008
    Posts
    9,279

    Default slight clamping down on MM

    unofficial min. is now 35 sq m excluding balcony and a/c ledge.




    Developers nudged to rightsize shoebox homes BT May 16


    (SINGAPORE) The Urban Redevelopment Authority seems to be encouraging developers of shoebox units to increase the size of their apartments. The minimum apartment size that URA is likely to approve these days, especially in projects with many micro apartments, seems to be 35 square metres, up from 28 sq m a couple of years ago, developers told BT recently.
    Analysts say that promoting an increase in the size of shoebox units may help to cool the property market since these micro apartments have been blamed for fuelling increases in per square foot prices at some property launches.
    A URA spokeswoman stressed that the planning authority does not stipulate a minimum size for apartments to give developers flexibility to build apartments of varying sizes to cater to home buyers' needs. Rather, it adopts a consultative approach, working closely with developers and architects in a negotiated process to enhance the quality of new developments in Singapore.
    'When we receive development proposals comprising many small residential units, our immediate concern would be the quality and liveability of the space for home owners as well as the potential impact on the living environment of the neighbourhood and the local traffic situation. In such cases, URA's planners will work with the developers and architects to finetune the design of the development, unit size and unit layout.
    'Thus far, the revised (minimum) unit sizes are typically in the range of 35-50 sq m gross floor area, excluding features such as bay windows, balconies and air-con ledges.'
    Where necessary, the applicant and URA may jointly do studies to determine the impact of the development proposal on traffic in the location, she added.
    The concern is whether the location can handle the additional traffic load arising from an increase in car population if a project with many small apartments is built. This is because the more units a developer packs into a residential development, the higher would be the number of car park lots it has to provide in the project.
    BT understands that since around Q3 last year, developers planning to build projects with a substantial number of smallish apartments have been given 'verbal advice' by URA that apartments should be no smaller than 35 sq m in gross floor area excluding balconies and air-con ledges.
    This 'verbal advice' seems to have been issued to developers and their architects when they made enquiries after their applications had been turned down, according to some market players.
    Industry participants suggest that URA has thus effectively increased the minimum apartment size it would allow, which was previously understood to be 28 sq m (or around 300 square feet), as reported by BT in October 2009.
    It was reported then that URA had turned down some applications involving apartments below 28 sq m. In that year, the market had seen what was believed to be Singapore's smallest ever apartment - at 258 sq ft - at the Suites@Guillemard.
    In URA's response to BT last week, its spokeswoman said that in processing development proposals, it assesses, among other things, the overall building design, site configuration, unit layout as well as the localised traffic situation to ensure that a proposed development involving small units can provide a good living environment for home buyers. 'In general, residential units should be self-contained with basic amenities such as a living area, bedroom, kitchen and bathroom.'
    A developer estimates that an apartment with gross floor area of 35 sq m (excluding balcony and air-con ledge) may have saleable area of about 40.5 sq m (about 436 sq ft) including the balcony and air-con ledge. He reckons that URA is more likely to be stringent about ensuring that apartment sizes are not too small for projects with a large proportion of one bedders and one-bedroom-plus study units.
    'But if the one bedders make up a relatively small proportion of units in a large development, which also has bigger units like two, three and four-bedroom apartments, URA's planners may allow a few units even if they're under 35 sq m. A lot will also depend on the layout of these units,' said the developer.
    UOL Group president (property) Liam Wee Sin, said: 'Ultimately, what is important is that buyers are made fully aware of the size of apartments they're purchasing and the new requirement for showflats to accurately reflect the actual size and layout of the units will help in this aspect.'
    Another developer who declined to be named said that URA's approach to encourage bigger units may have an impact on developers who specialise in shoebox apartments. 'Very often they have been able to achieve relatively high psf prices on these small apartments since they've been able to keep the lumpsum price affordable, at below $500,000. They can price say a 320 sq ft unit at around $1,400 psf and it would cost $448,000. If they now charge the same psf price rate for say a 435 sq ft, the absolute price would be $609,000.'
    DTZ executive director Ong Choon Fah suggests that the completion of some of these shoebox developments over the past year or so may have called into question the practicality of living in these small spaces and highlighted the impact of this housing type on the lives of residents and social fabric in the neighbourhood.

  2. #2
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by bargain hunter
    DTZ executive director Ong Choon Fah suggests that the completion of some of these shoebox developments over the past year or so may have called into question the practicality of living in these small spaces and highlighted the impact of this housing type on the lives of residents and social fabric in the neighbourhood.
    Impractical to live in such a small space??? Maybe must ask HK people. They have miserable units there too but all living decently mah... Anyway, those who've bought units smaller than 436 sq ft will huat coz they bought cheap but can still rent at same price as the larger but still studio apartments...

    Anyway, I seriously doubt the impact of raising the size of MM. At 100k more, most are still decently affordable by investors... Must target at other areas if govt really want to see results..

  3. #3
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Fragrance n oxley goto suck thumb liao

    450sqft is about right....

    No more disgusting 3xxsqft mm

    Whether isit a gd news for existing owners holding on to 3xxsqft mms?

  4. #4
    Join Date
    May 2009
    Posts
    976

    Default

    Good news - their units now Exclusive and Rare...can rent higher

  5. #5
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by ysyap
    Impractical to live in such a small space??? Maybe must ask HK people. They have miserable units there too but all living decently mah... Anyway, those who've bought units smaller than 436 sq ft will huat coz they bought cheap but can still rent at same price as the larger but still studio apartments...

    Anyway, I seriously doubt the impact of raising the size of MM. At 100k more, most are still decently affordable by investors... Must target at other areas if govt really want to see results..
    Can curb ridiculous mm psf la....easily curb 100-200psf

    So 3xxsqft become rare now? Hahaha

  6. #6
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by gn108
    Good news - their units now Exclusive and Rare...can rent higher
    Sure anot.....gg forward all bigger den them wor....tenants will choose bigger or smaller?

  7. #7
    Join Date
    Nov 2008
    Posts
    2,438

    Default

    I seriously doubt it. Have a friend who whack 300sf MM only. He has one at Tyrwhitt 139 and Soho 188. Around $5 psf only. Both rent out less than 2k just fyi. But at the price he bought, it is still good rental. He buy around 1.1k psf.

    Of course, we can't stop people from buying at 2k psf thinking that crap (sorry my friend) can fetch 4k a month. Both units are within walking distance to MRT.




    Quote Originally Posted by gn108
    Good news - their units now Exclusive and Rare...can rent higher

  8. #8
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by devilplate
    Sure anot.....gg forward all bigger den them wor....tenants will choose bigger or smaller?
    I both also don't choose... must put TV on air con ledge le... hahaha!!!

  9. #9
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by gn108
    Good news - their units now Exclusive and Rare...can rent higher
    Yes yes... higher than 1990s but not higher than other bigger studios today, all else being equal, like convenience, etc...

  10. #10
    Join Date
    May 2008
    Posts
    9,279

    Default

    i agree. this is one thing u dun want to be rare about.

    but this is unofficial and for approvals since Q3 2010. if they want to clamp down further, they can simply put in even stricter rules in a few months time when they officially announce the showflat rules thinghy.

    Quote Originally Posted by devilplate
    Sure anot.....gg forward all bigger den them wor....tenants will choose bigger or smaller?

  11. #11
    Join Date
    May 2008
    Posts
    9,279

    Default

    how much is the maintenence? if maintainence fees are relatively high as a proportion of the rental, then the net yield is even much lower.

    Quote Originally Posted by thomastansb
    I seriously doubt it. Have a friend who whack 300sf MM only. He has one at Tyrwhitt 139 and Soho 188. Around $5 psf only. Both rent out less than 2k just fyi. But at the price he bought, it is still good rental. He buy around 1.1k psf.

    Of course, we can't stop people from buying at 2k psf thinking that crap (sorry my friend) can fetch 4k a month. Both units are within walking distance to MRT.

  12. #12
    Join Date
    May 2009
    Posts
    976

    Default

    I was being sacastic - but I love the reactions...
    Perhaps that what an agent will market these 3xx sft units as ...rare!
    MM units sld be in Inner City and perhaps only 10-20% in other districts...where is MBT when you need him?


    Quote Originally Posted by gn108
    Good news - their units now Exclusive and Rare...can rent higher

  13. #13
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by thomastansb
    I seriously doubt it. Have a friend who whack 300sf MM only. He has one at Tyrwhitt 139 and Soho 188. Around $5 psf only. Both rent out less than 2k just fyi. But at the price he bought, it is still good rental. He buy around 1.1k psf.

    Of course, we can't stop people from buying at 2k psf thinking that crap (sorry my friend) can fetch 4k a month. Both units are within walking distance to MRT.
    5-6psf rental damn good liao....like norm sized psf in novena area n even orchard for eg

  14. #14
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by bargain hunter
    how much is the maintenence? if maintainence fees are relatively high as a proportion of the rental, then the net yield is even much lower.
    I tot u shd noe abt tyrwhitt....

  15. #15
    Join Date
    May 2008
    Posts
    9,279

    Default

    why would i know? i m not MM supporter leh. its MCM, our MM king who is likely to know.

    Quote Originally Posted by devilplate
    I tot u shd noe abt tyrwhitt....

  16. #16
    Join Date
    Nov 2008
    Posts
    2,438

    Default

    I think maintenance doesn't really matter if we use the psf rent x 12 / psf bought to compare.

    $5 x 12 / 1100 psf = 5.4% yield. Not bad already. But nowadays, I see people rushing for 1800 psf. 1.8k psf x 350 sf = 630k. Quantum looks low but if rent out at $5 psf, then you get like 3.3% yield. Worse still, no MRT. Maybe can fetch $4 psf now or $3 psf during crisis. $3 x 12 / 1800 = 2%. Good luck to them


    Quote Originally Posted by bargain hunter
    how much is the maintenence? if maintainence fees are relatively high as a proportion of the rental, then the net yield is even much lower.

  17. #17
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by gn108
    I was being sacastic - but I love the reactions...
    Perhaps that what an agent will market these 3xx sft units as ...rare!
    MM units sld be in Inner City and perhaps only 10-20% in other districts...where is MBT when you need him?

    u need him for what ?

    to test if his midget frame can live comfortably in a 3xx sqft unit ?

  18. #18
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by bargain hunter
    why would i know? i m not MM supporter leh. its MCM, our MM king who is likely to know.
    Err...tot u told me smthing abt tyrwhitt?

    Anyway nvm

  19. #19
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by proud owner
    u need him for what ?

    to test if his midget frame can live comfortably in a 3xx sqft unit ?
    Hahaha... small MM is for skinny people not midget people.... short people go to low ceiling homes... hahaha! Sorry!

  20. #20
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by ysyap
    Hahaha... small MM is for skinny people not midget people.... short people go to low ceiling homes... hahaha! Sorry!
    developers should invite MBT and WKS to grace their show flats ...

    to visually deceive the viewers on TV ...how BIG the MM units are ...

  21. #21
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by thomastansb
    I think maintenance doesn't really matter if we use the psf rent x 12 / psf bought to compare.

    $5 x 12 / 1100 psf = 5.4% yield. Not bad already. But nowadays, I see people rushing for 1800 psf. 1.8k psf x 350 sf = 630k. Quantum looks low but if rent out at $5 psf, then you get like 3.3% yield. Worse still, no MRT. Maybe can fetch $4 psf now or $3 psf during crisis. $3 x 12 / 1800 = 2%. Good luck to them
    Bigger units mostly below 4%now too....

    3%yield consider ok oredi

    Gd luck everyone

  22. #22
    Join Date
    May 2009
    Posts
    976

    Default

    Being short will no longer be a liability...can get those skinny models to do runway walk up and down the showflat...

    On the opposite end...can you imagine GCT attending a MM show-flat?
    Like playing squash - stand in the centre of the "T" and he can reach everything..

    Quote Originally Posted by proud owner
    developers should invite MBT and WKS to grace their show flats ...

    to visually deceive the viewers on TV ...how BIG the MM units are ...

  23. #23
    Join Date
    May 2009
    Posts
    976

    Default

    Everyone waiting for interest rates to start moving up ...music stops then...

    Quote Originally Posted by devilplate
    Bigger units mostly below 4%now too....

    3%yield consider ok oredi

    Gd luck everyone

  24. #24
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by gn108
    Everyone waiting for interest rates to start moving up ...music stops then...
    Again dun fully agree...u nid int rate to spike up .....aussie rates spike up but nvr crash leh....

  25. #25
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by gn108
    Everyone waiting for interest rates to start moving up ...music stops then...
    New music just started... new blood will rush in to snatch the fire sales from desperate sellers due to high interest rates.. Not very defined for MM units lah coz low loan amounts.... its the bigger units that will kana jialat jialat...

  26. #26
    Join Date
    May 2009
    Posts
    976

    Default

    I agree with you...but once rates form a floor and creep up, it marks the beginning of the end (of the up and up cycle). It needs to creep up above the prevailing nett rental yield before the tipping point, then when rates exceed the gross yield - thats when the fat lady sings..

    Quote Originally Posted by devilplate
    Again dun fully agree...u nid int rate to spike up .....aussie rates spike up but nvr crash leh....

  27. #27
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by gn108
    I agree with you...but once rates form a floor and creep up, it marks the beginning of the end (of the up and up cycle). It needs to creep up above the prevailing nett rental yield before the tipping point, then when rates exceed the gross yield - thats when the fat lady sings..
    Haha...but in 07, int rates abt 3.5-4%.....music nvr stop until subprime surface wor....i remember icon rental in 07 abt 3-3.5k....now 3.8-4k...However, icon px abt 15xxpsf tat time whereas now 18xxpsf liao....

    Watch out guys...hehe

  28. #28
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Best is buy properties without loan.. then don't care about interest rates... just concern with rental... sit down and collect $!

  29. #29
    Join Date
    Apr 2010
    Posts
    15,307

    Default

    Quote Originally Posted by ysyap
    Best is buy properties without loan.. then don't care about interest rates... just concern with rental... sit down and collect $!
    Mortgage loan is the cheapest loan in sg....die die must take one

    Let say u got 1mil cash, buy a 1mil ppty n at least take 50%loan la....den if px super drop or silver gold super crash...can buybuybuy!

  30. #30
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by devilplate
    Mortgage loan is the cheapest loan in sg....die die must take one

    Let say u got 1mil cash, buy a 1mil ppty n at least take 50%loan la....den if px super drop or silver gold super crash...can buybuybuy!
    Yup yup.. spread out your portfolio but don't enter a market without doing homework... can get burnt easily....

Similar Threads

  1. Singapore developer sentiment shows slight bump in Q2
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 04-08-15, 16:53
  2. Slight dip in loan figures for Dec
    By reporter2 in forum Finance and Legal
    Replies: 0
    -: 05-02-15, 16:40
  3. Slight rise in prices of resale condo units
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 12-11-14, 13:17
  4. Slight rise in private resale home prices
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 02-10-13, 12:12
  5. Slight fall in Q1 office rents as occupancies rise
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 0
    -: 04-04-10, 02:50

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •