by OrangeTee & Tie Pte Ltd.

New URA guideline to curb shoebox units in central area

Government Policies

Singapore, 18 Oct 2022

SINGAPORE - A new guideline was introduced on Tuesday to curb the proliferation of shoebox units in non-landed private residential projects in the central area, and to ensure there will be sufficiently large units built to encourage more families to move there. 

With effect from Jan 18, 2023, all flats and condominiums within the central area, as well as the residential component of commercial and mixed-use developments, will be required to provide a minimum of 20 per cent of dwelling units with a nett internal area of at least 70 sq m, the Urban Redevelopment Authority said. 

This comes as the URA has seen “a persistent trend in declining dwelling unit sizes in the central area,” which is in conflict with its planning intent to position this area as an attractive place to live, work and play.

Other analysts said Tuesday’s new rule may not have significant market impact as many new developments in the central area already include a number of big units, and buyers of such units usually have the financial means to do so. 

However, as this guideline will result in fewer smaller units built in the central area, investment property buyers may need to shell out more for such units in future, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.

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