What do you all think about this CM? Will existing units, and those developments already launched, with PES & RT go up or down in $ as a result of this new ruling?
My thoughts are:
- Developers can still get 10% "bonus" GFA, but no longer FOC; must now pay development charge
- However, as it's still "bonus" (otherwise, they only have the "standard" GFA), developers might as well develop them and charge for them; except that they must now price in a higher profit as it's no longer FOC
- Which means that units with PES and RT should be selling on a psf basis higher than what developers used to sell them at (generally quite a bit lower than the "normal" units); especially now that the new guidelines seem to indicate that they can be covered, depending on building height, though not enclosed
- And this leads me to conclude that on a whole, units with PES and RT should go up in $psf, particularly existing development or those already launched
Or if developers decide that since they can't use their "free" space to increase profits anymore, they might not bother building them. Which means existing units with PES and RT would become rarer. Again potentially leading to higher $psf due to lack of supply
Interested to hear the thoughts of the gurus here...