Some measures for shoeboxes announced

[mantrix]

really?! Look at ECo and Watertown going at 1200psf and beyond.

http://www.ura.gov.sg/realEstateWeb/...ubmitSearch.do

Nathan residences - FH, D9 going for est. 1600psf

This only shows one thing - stupidity (and carrotcake-ness) knows no bounds

i think it's the quantum - CCR properties tend to be larger (around 1300 sq ft for a 3BR) while OCR apartments are smaller (1000 sq ft for 3 BR) hence more affordable

[windcar]

ok some info about watertown:
from http://my-punggolwaterway.com/?page_id=88
it says Permissible GFA: Residential: 75,598.24 sqm
from http://www.e-singaporeproperty.com/w...ndominium.html,
it says that there are 992 residential units in watertown
so
average size of each units is about 76sqm

So we have seen that even similar development like WaterTown will not be affected by this new measure in the future. This, imo, is just another lame attempt to curb the market. But KBW should put more effort into solving HDB housing instead.

[Kanarazu]

Would this result in super big balcony? Eg using standard GFA on top of bonus GFA to build more balcony space and thus lowering the psf since it is cheaper to build balconies. This will minimize quantum increase while creating more floor space per unit. Or the return of bay windows....

[eng81157]

i think it's the quantum - CCR properties tend to be larger (around 1300 sq ft for a 3BR) while OCR apartments are smaller (1000 sq ft for 3 BR) hence more affordable

Project NameStreet NameTypeNo. of UnitsPrice
($)Area (Sqft)1
Type of Area2
Unit Price ($psf)3
Date of Option Exercised / Sales Agreement SignedNATHAN RESIDENCES NATHAN ROADApartment1980,000592Strata1,655Jun-12NATHAN RESIDENCES NATHAN ROADApartment1948,000592Strata1,601Apr-12NATHAN RESIDENCES NATHAN ROADApartment11,240,000786Strata1,578Apr-12NATHAN RESIDENCES NATHAN ROADApartment1885,000592Strata1,495Mar-12NATHAN RESIDENCES NATHAN ROADApartment1920,000592Strata1,554Mar-12Project NameStreet NameTypeNo. of UnitsPrice
($)Area (Sqft)1
Type of Area2
Unit Price ($psf)3
Date of Option Exercised / Sales Agreement SignedNATHAN RESIDENCES NATHAN ROADApartment1980,000592Strata1,655Jun-12NATHAN RESIDENCES NATHAN ROADApartment1948,000592Strata1,601Apr-12NATHAN RESIDENCES NATHAN ROADApartment11,240,000786Strata1,578Apr-12NATHAN RESIDENCES NATHAN ROADApartment1885,000592Strata1,495Mar-12NATHAN RESIDENCES NATHAN ROADApartment1920,000592Strata1,554Mar-12

Not entirely true.....

NATHAN RESIDENCES NATHAN ROADApartment1980,000592Strata1,655Jun-12
Nathan residences
592sqft, 1655psf in Jun 2012
592sqft, 1601psf in Apr 2012

[azeoprop]

Most probably we will see apartments with a/c ledge that surrounds the whole of the unit's parameter.

[windcar]

Would this result in super big balcony? Eg using standard GFA on top of bonus GFA to build more balcony space and thus lowering the psf since it is cheaper to build balconies. This will minimize quantum increase while creating more floor space per unit. Or the return of bay windows....

Bonus GFA has to be used for balcony space anyway, with or without the new measure. That is the old rule.

[carbuncle]

Govt wanna reduce number of units in each development.

Developers wanna protect profit margins.

Buyers want small quantum for affordability.

Solution?
Build 507sf 2bedders. Sell at least 700k each for OCR. If super near mrt or mall can sell 800k up. 700-800k is perceived market price for two bedders. Developers get same or even better profit margin plus save on building materials. Everyone happy.

[latour]

This is simply the authority saying... No more small quantum (in terms of $$$ with high $/psf) units.

[phantom_opera]

Most probably we will see apartments with a/c ledge that surrounds the whole of the unit's parameter.

something like this, replace planter with AC ledge??

[Kanarazu]

Would this result in super big balcony? Eg using standard GFA on top of bonus GFA to build more balcony space and thus lowering the psf since it is cheaper to build balconies. This will minimize quantum increase while creating more floor space per unit. Or the return of bay windows....

Or build more carpark lots per unit which counts towards GFA.

[phantom_opera]

Govt wanna reduce number of units in each development.

Developers wanna protect profit margins.

Buyers want small quantum for affordability.

Solution?
Build 507sf 2bedders. Sell at least 700k each for OCR. If super near mrt or mall can sell 800k up. 700-800k is perceived market price for two bedders. Developers get same or even better profit margin plus save on building materials. Everyone happy.

So it will be:

186 X 45sqm 2br
186 X 70sqm 3br
186 X 95sqm 4br

[hopeful]

I was dozing off when the circular was published lol. In summary, the Telok Kurau computation over 100sqm will be applied to Kovan and Joo Chiat the other two hotspots. For all others outside Central area, computation will be based off 70sqm.

Existing MMs in those named areas - HUAT AH!!!!!!!!!!!!!! No more competition liao yahoo!!! Next time all will need to rent 3.2k above for the 'at least 70sqm' units.

20 years down the road, those MM projects difficult to enbloc.
since the trend is for large units before enbloc to become smaller unit after, and not small units to become larger.

[Ringo33]

20 years down the road, those MM projects difficult to enbloc.
since the trend is for large units before enbloc to become smaller unit after, and not small units to become larger.

thats very true.

[carbuncle]

bro hopeful, seriously, with the roti prata style of our policy makers, do you think you can speak for the next ten years? I don't even dare to guess for next two years.

[carbuncle]

Judicious Market Intervention

As regulators, we try not to interfere in the normal functioning of the market, or to second-guess it. But occasionally, some judicious intervention for public interest is necessary when the market outcome is less than satisfactory.

For example in recent years many residential projects in Telok Kurau area have led to a rampant development of tiny shoebox units in that area, resulting in disamenities such as severe traffic congestion, shortage of car parks and double-parking. Residents in that area appealed for development guidelines to restrict the over-development of such tiny housing units.

After consulting with the stakeholders, URA decided to move in, but in a judicious way, without over-regulating or stifling the creativity of developers.

Hence, instead of specifying a minimum floor area for an apartment, URA chose to limit the maximum number of apartments that developers can propose in a particular development. This way, developers are still free to build small apartments if there is demand, but there must be a good mixture of large and small units, in order to meet the URA guidelines.

The planning guidelines were implemented in Nov 2011. It was very well received, by architects, developers and the local residents.

Meanwhile, elsewhere, outside of the Central Area, some new developments have included a large proportion of shoebox units. I voiced concern about this trend in a couple of blog posts. Many Singaporeans voiced similar concerns too. Unlike the Central Area, the suburbs are largely for families. While there is a need for smaller units, like studio apartments, 2-rm flats and shoebox units for the singles, retirees and small families, too many in the same locality cannot be optimal.

Many developers have frowned on this trend too. To be sure, this is not a general industry practice, but largely confined to a few developments.

After watching this development for a while, URA decided that it should intervene as it had done before. This afternoon, it announced the new planning guidelines to address the issue of developments which consist predominantly of shoebox units outside the Central Area.

The new URA planning guidelines are measured and moderate. There will still be shoebox units to meet the need of a segment of the population, but there will also be many more larger units, to meet the demand of the other population segments.

I am confident this judicious market intervention will again be welcomed by the stakeholders, developers and residents.

Please visit the MND Facebook to leave a comment.

[Mr.Keh]

I see this as good news for existing OCR studio owners like myself.

Less supply in future will lead to higher prices???

[dtrax]

Central Area: It comprises the following 11 Planning Areas :Outram, Museum, Newton,River Valley, Singapore River, Marina South,Marina East, Straits View, Rochor, Orchard and Downtown Core

BBBasically it is just limited mostly to CCR that does not have this restriction since the shoebox units are not very prevalent: http://www.ura.gov.sg/circulars/text/dc12-13app1.pdf

There are 3 pricing bands for this comparison 500k-750k, 350k-<500k, >750k-<1mil

Did a runthrough on the stats and it is indeed scary to the max where the high risk group is based on the same price price band with comparison to the planing area


[Central Area]
Property Type : Non-Landed - All (exclude EC)
Planning Area : Downtown Core, Marina East, Marina South, Museum, Newton, Outram, Orchard, Straits View, Rochor, River Valley, Singapore River
Floor/Land Area (sqm) : 0 - 46.5
Total Price ($) : 500000 - 750000
Contract Date : JAN 2011 - AUG 2012
Units: 41
Note: Most transacted prices starts from 650k onwards

Property Type : Non-Landed - All (exclude EC)
Planning Area : Downtown Core, Marina East, Marina South, Museum, Newton, Outram, Orchard, Straits View, Rochor, River Valley, Singapore River
Floor/Land Area (sqm) : 0 - 46.5
Total Price ($) : 750001 - 999999
Contract Date : JAN 2011 - AUG 2012
Units: 132

[Non-Central Area]
Property Type : Non-Landed - All (exclude EC)
Planning Area : Ang Mo Kio, Bedok, Bukit Batok, Boon Lay, Bukit Merah, Bishan, Bukit Timah, Changi Bay, Central Water Catchment, Changi , Choa Chu Kang, Clementi, Geylang, Hougang, Jurong East, Jurong West, Kallang, Lim Chu Kang, Mandai, Marine Parade, North-Eastern Islands, Novena, Punggol, Paya Lebar, Pioneer, Pasir Ris, Queenstown, Sembawang, Sengkang, Serangoon, Southern Islands, Sungei Kadut, Seletar, Simpang, Tengah, Tampines, Tanglin, Toa Payoh, Tuas, Western Water Catchment, Woodlands, Western Islands, Yishun
Floor/Land Area (sqm) : 0 - 46.5
Total Price ($) : 500000 - 750000
Contract Date : JAN 2011 - AUG 2012

Units: 2926
Note: 25 percentile: 500k-550k, 50 percentile: >550-<600k, 75 percentile: >600k-<650k

Property Type : Non-Landed - All (exclude EC)
Planning Area : Ang Mo Kio, Bedok, Bukit Batok, Boon Lay, Bukit Merah, Bishan, Bukit Timah, Changi Bay, Central Water Catchment, Changi , Choa Chu Kang, Clementi, Geylang, Hougang, Jurong East, Jurong West, Kallang, Lim Chu Kang, Mandai, Marine Parade, North-Eastern Islands, Novena, Punggol, Paya Lebar, Pioneer, Pasir Ris, Queenstown, Sembawang, Sengkang, Serangoon, Southern Islands, Sungei Kadut, Seletar, Simpang, Tengah, Tampines, Tanglin, Toa Payoh, Tuas, Western Water Catchment, Woodlands, Western Islands, Yishun
Floor/Land Area (sqm) : 0 - 46.5
Total Price ($) : 350000 - 499999
Contract Date : JAN 2011 - AUG 2012

Units: 649
Note: Most transacted prices starts from 400k onwards

[ikan bilis]

heya...

now the MMs are around 35sqm...
if kenobi wan die die want average 70sqm condo hor, then developers can go build 70sqm dual-key mm mah... each side in the dual-key is a 35sqm studio/1-bdr...
that will make developers happy, buyers happy, kenobi wan happy, tenants happy... so everybody happy and shiok !!..

[Ringo33]

heya...

now the MMs are around 35sqm...
if kenobi wan die die want average 70sqm condo hor, then developers can go build 70sqm dual-key mm mah... each side in the dual-key is a 35sqm studio/1-bdr...
that will make developers happy, buyers happy, kenobi wan happy, tenants happy... so everybody happy and shiok !!..

better not play with fire lah. if not sure kenna more CMs.

[Ringo33]

Does it mean that developers with existing land bank will have to submit their plans to URA before 4th Nov in order not to be penalized by the new regulation?

[Wild Falcon]

I think its about time URA redefine central area. D9,10,11 is outdated - and some parts of D10 and D11 is so far from town.

Anyway, I guess the impact is negative on non-central areas since developers cannot build exclusively MM anymore. But since most developers do NOT build exclusively MM in suburbs, I suspect few areas are adversely affected, other than the MM paradise in D14 and D15 like Telok Kurau, Joo Chiat and Geylang, and perhaps Stevens area where new launches also all MM. Its good news that now the suburban areas will consist of fairly large units on average - not too cramped and positive for living environment

So central areas land value probably will increase because there is less restrictions on what developers can and cannot do. Developers who exclusively build MMs most likely will bid for land in the central areas. Let all the MMs congregate there - doesn't matter to me if the place becomes congested and unlivable....

In fact MOST parts of Bukit Timah is not considered central. Even Robin Road and part of Steven road are not considered central. But some parts of East coast Park way is considered central. Crazy.

[Ringo33]

I think its about time URA redefine central area. D9,10,11 is outdated - and some parts of D10 and D11 is so far from town.

Anyway, I guess the impact is negative on non-central areas since developers cannot build exclusively MM anymore. But since most developers do NOT build exclusively MM in suburbs, I suspect few areas are adversely affected, other than the MM paradise in D14 and D15 like Telok Kurau, Joo Chiat and Geylang, and perhaps Stevens area where new launches also all MM. Its good news that now the suburban areas will consist of fairly large units on average - not too cramped and positive for living environment

So central areas land value probably will increase because there is less restrictions on what developers can and cannot do. Developers who exclusively build MMs most likely will bid for land in the central areas. Let all the MMs congregate there - doesn't matter to me if the place becomes congested and unlivable....

perhaps thats the reason why FEO went in so aggressively on the Farrer Road plot.

[minority]

Using demand-supply theory, means OCR MM unit prices will increase?

Was there real demand in the 1st place? More of a developer playing quantum game.

[3C]

Developers with difficult to sell OCR, high psf shoebox unit will have to thank KBW. Those with months no buyers will be snapped up soon.

[Wild Falcon]

Farrer is outside Central Area so the new rule will apply.

perhaps thats the reason why FEO went in so aggressively on the Farrer Road plot.

[bargain hunter]

the most badly hit will be those small boutique developers who bought super small land sized plot. how are they going to strike a balance between the big and small units when they originally planned for just 1 and 2 bedders?!

[Allthepies]

the most badly hit will be those small boutique developers who bought super small land sized plot. how are they going to strike a balance between the big and small units when they originally planned for just 1 and 2 bedders?!

Who cares? Let them go kaboom loh

[Kanarazu]

the most badly hit will be those small boutique developers who bought super small land sized plot. how are they going to strike a balance between the big and small units when they originally planned for just 1 and 2 bedders?!

Kovan Lodge enbloc will be the interesting one to watch.

[sh]

the most badly hit will be those small boutique developers who bought super small land sized plot. how are they going to strike a balance between the big and small units when they originally planned for just 1 and 2 bedders?!

They will quick quick submit before the ruling kicks in... The last of the suburban MMs

[Kelonguni]

Its one Govt strategy to ensure sustainability of the property price actually.

Prevent the quantum from going down (higher sf even if psf drops), as well as work on the mean size of private apartment.

These are important stats to report. So rest assured, not much changes to the big game plan. Mean 70sqm has more than enough grounds to play with. Mean 100sqm is more tricky though.