URA increases average strata area to deter the rise in shoebox apartments
Who should be aware : Building owners, developers, and architects
Effective Date : With effect from 17 January 2019
On 17th October 2018, the Urban Redevelopment Authority (URA) announced a revision on maximum allowable dwelling units in non-landed residential developments to reduce the trend of shoebox units outside Central Area.
URA first introduced the guidelines in 2012 to limit the maximum permissible number of dwelling units for non-landed residential development outside the Central Area. In order to moderate the number of shoebox units outside the Central Area, the initial guideline compelled developers to comply with an average of 70 square metres (sqm) per unit. The Government had reservation that the proliferation of shoebox apartments may create problems for Singapore property in the longer run. These reservations were mainly directed at the lower occupancy rate in these properties which may create low usage of land.
The government agency targeted four vulnerable areas – Telok Kurau, Kovan, Joo Chiat and Jalan Eunos- to more stringent guidelines with an average 100 sqm per unit. The measure was taken to counter excessive shoebox units that were developed in these areas to prevent further straining on the local infrastructure.
Since then, it continues to observe the distribution of unit sizes in each development as well as the number of new developments in certain areas. The government noted from URA property market information that proliferation of smaller sized dwelling units in new private developments are adding stress to the local infrastructure system. Furthermore, the number of redevelopment of residential buildings will add more strain to the local infrastructure.
How Does New URA Guidelines Affect Shoebox Apartments?
Considering the conditions above, the government agency has revised the existing guidelines on maximum allowable DUs for all new flats and condominium developments outside Central Area to a more stringent condition of 85 sqm on average.
MAXIMUM NO. OF DWELLING UNITS PER DEVELOPMENT ≤ (MASTER PLAN ALLOWABLE GROSS PLOT RATIO [GPR]2 X SITE AREA) / 85 SQM
The URA and Land Transport Authority (LTA) have earmarked nine areas where the cumulative effect of new developments could pose a severe strain on local infrastructure. For these areas, the maximum number of DUs for all new flats and condominium developments will be:
MAXIMUM NO. OF DWELLING UNITS PER DEVELOPMENT ≤ (MASTER PLAN ALLOWABLE GROSS PLOT RATIO [GPR]2 X SITE AREA) / 100 SQM
This will limit the upper boundary of the total number of units as developers will have to build bigger units. While the public welcome this preventive measure, it has the unintended effect of cooling down the prices for future land bids as developers will have to price the larger units at affordable range of budget. As many developers rely on selling a higher per square feet in smaller units to get the higher profit margin, the new guideline will disrupt the existing practice.
URA raises average strata area for better unit mix
In an attempt to reverse the trend of shoebox apartments, the government wants the developers to provide a better mix of unit sizes to cater to the needs of larger families and promote multi-generation living. An example is a development where about 20% of the DUs have a nett internal area of at least 100 sqm; and where units with a nett internal area of less than 50 sqm do not exceed about 20% of the proposed DUs.
These guidelines apply to residential component of mixed-use developments such as Residential with Commercial at 1st storey or Commercial and Residential developments.
These revised guidelines are designed to encourage developers to embrace a wider range of market needs across all segments of the market, particularly larger families. These guidelines will help to reverse the trend of shoebox apartments, safeguard the liveability of our towns, and protect the local infrastructure from overloading.
The government agency will continue to monitor and review the guidelines periodically to account for changes in lifestyle or conditions of infrastructure developments.
The revised guidelines will apply to relevant development applications submitted to URA on or after 17 January 2019. If the proposed development needs to undergo a Pre- Application Feasibility Study (PAFS), applicants must first obtain LTA’s clearance before submitting the application.