SINGAPORE, 18 October 2022 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on new URA guideline for non-landed residential developments within the Central Area.
The URA today imposed a new guideline for non-landed residential developments within the Central Area. New developments must provide a minimum of 20% of dwelling units (DUs) with a nett internal area of at least 70 sqm. The guidelines on non-landed residential developments outside the Central Area remain unchanged since the last revision in October 2018.
Unlike in Outside Central Area, the government has opted not to apply a blanket DU cap in the Central Area, given the extensive transport network in town, which will be enhanced soon by the operation of Stage 3 of the Thomson East Coast Line (TEL) in mid-November.
The policy intent behind the new guidelines is to increase the live-in population in the Central Area by ensuring a sufficient number of units conducive for families. The policy guideline was likely formulated in consideration of new developments, such as the redevelopment of the former Fuji Xerox Towers and AXA Tower, as well as the planning intent of a vibrant downtown that extends seamlessly to the new Greater Southern Waterfront, where work, live and play can occur 24/7.
The policy move is commendable and commensurate with the urban objectives, and the effectiveness might be enhanced if more educational institutions can be located in the Central Area or its fringe, as convenient access to educational institutions is a key priority especially for young families.
The market impact is likely to be subdued. Given the premium of living space in the new endemic normal, units with greater internal area are still likely to be well received. In particular, foreigners who are increasingly looking to invest in residential properties in the prime or downtown localities have also exhibited a penchant for larger units. With the improving transport connectivity, rising number of mixed-use developments and the gentrification of neighbourhoods like Tanjong Pagar and Beach Road, more families are likely to consider living in the Central Area as an attractive option.
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