The Urban Renewal Authority (URA) posted a notice on its website Tuesday (Oct. 18) to revise the proportion of larger units in non-land-owned residential projects in the Central District, thereby encouraging more people to live in the Central District.
Noting the shrinking size of residential units in the Central District, the URA said it decided to modify the regulations to ensure that a good mix of unit sizes is maintained for residential units in the Central District.
The Central District spans 11 planning areas, including Ou Nan Garden, Museum District, New Town, Riri Riri, Singapore River, Marina South, Marina East, Channel View, Cao Wu, Orchard and Central City.
The URA's notice says: "With the changing lifestyle needs, the planning purpose of the central district has become an attractive area to live, work and relax. As a result, we have been working to bring more mixed-use projects into the Central District to encourage more residents (including families) and to make our urban areas more vibrant."
Given the space constraints in the central areas, 70 sq. m. is a more reasonable unit size for a small family, and URA has not set a limit on the total number of units in the central areas because these areas are generally well served by public transportation and residents are less reliant on private vehicles. As a result, new development is unlikely to put pressure on local infrastructure.
In 2018, URA introduced guidelines for residential projects outside of the central area, increasing the average size of units from at least 70 square meters to at least 85 square meters (914.93 square feet). The authorities also require developers to develop residential projects where at least 20% of the area is 100 square meters or more and up to 20% is less than 50 square meters. This means a reduction in the total number of units developers can build in their projects, with a corresponding increase in the average unit size.
Analysts also believe that the revision of the proportion of larger residential units in the Central District is a timely adjustment, as the median size of new residential units in the Central District has fallen from 94 square meters in the third quarter of 2017 to 73 square meters in the third quarter of this year.
Analysts:More schools and educational institutions should be built in the Central District.
Requiring at least 20 percent of units to be 70 square meters or more is a reasonable limit to ensure developers offer a good mix of unit sizes to meet the needs of different family sizes and market segments.
If the authority does not amend the guidelines, the central area is likely to be overwhelmed by a large number of smaller units.
The purpose of the amendment is to ensure that there are enough family-friendly residential units in the central area to increase the number of people living there. It is assumed that the authority has also considered the next steps for the downtown, such as building a vibrant downtown that extends to the southern waterfront and becomes a vibrant community for living, working and recreation.
It is recommended that the authority establish more schools and educational institutions in the Central District, as this is an important consideration for many young families purchasing homes to facilitate their children's schooling.
This amendment is expected to result in more apartments of larger sizes in the downtown area. However, it will have little impact on the Central District as a whole. This is because most projects in the central area are currently in compliance with the new regulations.
From the perspective of pool sales, this may result in increased costs and reduced profits for developers, which in turn will affect the success of some pool sales projects in the central district.
