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Thread: PES & Roof Terrace to be treated as GFA

  1. #1
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    Smile PES & Roof Terrace to be treated as GFA

    d) Private enclosed spaces and private roof terraces will be treated as gross floor area (GFA). The GFA of such spaces in non-landed residential developments, including ECs, will be counted as part of the ‘bonus’ GFA of a residential development and subject to payment of charges. This is in line with the treatment of balconies under URA’s current guidelines. Details of this measure are at [url]www.ura.gov.sg/circulars/text/dc13-01.htm[/url].
    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...

  2. #2
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    Quote Originally Posted by Ninjago
    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...
    I think developers are already charging a lot for PES for PC in recent 1-2 years, my sense is about 60-70% of normal psf. Going forward, PES and RT will shrink to make them more affordable to buyers. This ruling will enhance the value of existing or BUC units with PES and RT more.

  3. #3
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    Excellent news! i was just rejected by MCST to make cover for my PES area.

  4. #4
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    if psf is higher for PES and RT, congrats to all who own them😃

  5. #5
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    Quote Originally Posted by adrianmtsg
    Excellent news! i was just rejected by MCST to make cover for my PES area.

    Does the new rulling affect current PES and those signed S&P but not TOP yet?

  6. #6
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    Developers will not build big PES and RT for time being.

    They may slowly include a few such units in their new launches but priced almost the same psf as other units to test the demand for it.

    Buyers particularly looking for such units will have to turn to resale market.

  7. #7
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    Looks like the government has inadvertently made the buyer of that 4000+ sf CityLife penthouse an even bigger winner...

    And if developers don't raise the prices of their existing stock of units with PES and RT for sale, may be a good time to look at them to mitigate the new ABSD

  8. #8
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    For current owner, many mcst does not permit cover over PES/RT area. Now they can. That will mean bigger live in area for this unit.

    For developer and en-bloc buyer, that means higher premium with increase in DC. This eventually will pass on to house buyer.

    Quote Originally Posted by willow
    Does the new rulling affect current PES and those signed S&P but not TOP yet?

  9. #9
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    a lucky bastard. But i think only 10% of total space can be covered. Still, good buy for a 4000+ sqft unit, i think.

    Quote Originally Posted by Ninjago
    Looks like the government has inadvertently made the buyer of that 4000+ sf CityLife penthouse an even bigger winner...

    And if developers don't raise the prices of their existing stock of units with PES and RT for sale, may be a good time to look at them to mitigate the new ABSD

  10. #10
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    Where did they say that PES and RT space can be covered up?
    Quote Originally Posted by adrianmtsg
    For current owner, many mcst does not permit cover over PES/RT area. Now they can. That will mean bigger live in area for this unit.

    For developer and en-bloc buyer, that means higher premium with increase in DC. This eventually will pass on to house buyer.

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