Last Updated: Nov 13, 2022
The Urban Redevelopment Authority (URA) has issued a circular on Oct 18 mandating that at least 20% of Central Area dwelling units (DUs) of newly constructed residential flats, condominiums and the residential portion of mixed-use developments deliver a net internal area of minimally 70 square metres. This is equivalent to 753.53 square feet.
Applications submitted to URA from January 18, 2023 will be governed by the latest guidelines.
credit:pexel
Considering the persistent trend in declining DU sizes in the Central Area, the URA revised guideline seeks to address this issue.
11 Planning Areas make up the Central Area. They comprise Outram, River Valley, Newton, Marina East, Marina South, Singapore River, Straits View, Orchard, Museum, Rochor and the Downtown Core.
A deliberate effort has been made to introduce more mixed-use properties in the Central Area in order to attract more residents and add vibrancy to the area.
For small families, 70 sqm is a suitable space, especially in the Central Area, where space is more constrained. DU sizes should be varied to cater to the needs of all segments of the market, including large households, and avoid an excessive number of smaller units.
Huttons senior research director Lee anticipates the updated guidelines will affect some of the en bloc properties in the Marina Gardens Lane and Central Area. It is possible that developers will reconsider their bids for en bloc projects because of high costs. This may negatively affect the success rate of Central Area en bloc projects. In addition, he also expects that smaller new condo units may cost more in time to come due to URA new 70 sqm rule. This is because there will be lesser choices for investors on the smaller Central Area dwelling units.
It was noted in 2018 that URA revised its guidelines on the maximum number of DUs permitted in non-landed residential properties outside the Central Area . The maximum number of DUs is determined by dividing the gross floor area of the proposed building by 85 square metres. As lifestyle changes and infrastructure advances change, the URA will continue to review the guidelines regularly.
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source:https://www.straitstimes.com/business/new-ura-guideline-to-curb-shoebox-units-in-central-area
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