{"id":100442,"date":"2018-10-24T11:25:38","date_gmt":"2018-10-24T04:25:38","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-may-need-to-rethink-pricing-amidst-new-shoebox-rule\/"},"modified":"2018-10-24T12:02:50","modified_gmt":"2018-10-24T05:02:50","slug":"developers-may-need-to-rethink-pricing-amidst-new-shoebox-rule","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-may-need-to-rethink-pricing-amidst-new-shoebox-rule\/","title":{"rendered":"Developers may need to rethink pricing amidst new shoebox rule"},"content":{"rendered":"


\nNew URA rules have slashed the maximum number of units that can be built outside the central areas.
\nThe Singapore government\u2019s new policy on apartment sizes may come as good news to home buyers, but not to home builders who may now need a pricing rethink which could dent their profitability, reported Bloomberg.
\nThis comes as the new guidelines on unit sizes effectively slashed the maximum number of apartment units in a project by 18 percent as the government raised the average unit size to 85 sq m from the existing 70 sq m.
\nTo come into effect by early-2019, the changes will only apply to residential developments outside the central areas, said the Urban Redevelopment Authority.
\nMore:\u00a0URA To Adjust Guidelines If Developers Build Too Many Shoebox Units
\nThe new rule follows recent property cooling measures introduced by the government in July, which sees developers shelling out almost 9.0 percent more for land acquisitions.
\n\u201cThe July curbs put the handbrake on en bloc transactions,\u201d said ZACD Group research head Nicholas Mak.
\nCoupled with the fact that they now have to build bigger apartments, developers may be forced to reduce selling prices to move units, noted Mak.
\nUnited First Partners head of Asian research Justin Tang said Singapore developers will ultimately end up building fewer, bigger units.
\n\u201cThis could make a calibration of price on a per square foot basis necessary, which will eat into margins.\u201d
\nMeanwhile, projects launched this year will not be affected by the new guidelines on unit size as they have already been approved by the government. Nonetheless, home buyers looking to acquire condominiums in 2019 may want to look out for good deals, said Mak.
\nAnalysts at UBS Group AG expect home prices to drop by up to 2.0 percent by 2019 and another similar drop by 2020.
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Developers may need to rethink pricing amidst new shoebox rule<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

New URA rules have slashed the maximum number of units that can be built outside...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-100442","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-q82","jetpack-related-posts":[{"id":87014,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-to-adjust-guidelines-if-developers-build-too-many-shoebox-units\/","url_meta":{"origin":100442,"position":0},"title":"URA to adjust guidelines if developers build too many shoebox units","date":"May 3, 2018","format":false,"excerpt":"\r Developers are allowed to build condo units of different sizes, assuming an average size of 753 sq ft. The Urban Redevelopment Authority (URA) said on Wednesday (3 May) that it will intervene, if needed, to prevent property developers from building too many tiny apartments or shoebox units amidst the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":100096,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-limits-number-of-private-condos-outside-central-region\/","url_meta":{"origin":100442,"position":1},"title":"URA limits number of private condos outside central region","date":"October 18, 2018","format":false,"excerpt":"\r The move aims to safeguard the liveability of housing estates in Singapore by reducing the sizes of private condos. The Urban Redevelopment Authority (URA) changed the formula for determining the maximum number of units that developers can build in new non-landed residential projects outside Singapore\u2019s central region on Wednesday\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":101292,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/majority-of-shoebox-apartment-investors-profited-knight-frank\/","url_meta":{"origin":100442,"position":2},"title":"Majority of shoebox apartment investors profited: Knight Frank","date":"November 15, 2018","format":false,"excerpt":"\r Owners of shoebox apartments can expect to enjoy healthy capital gains.\u00a0 About 88.4 percent of resale transactions involving shoebox apartments, units smaller than 50 sq m (approx. 538.2 sq ft), made a profit, according to an analysis of caveats by Knight Frank. \u201cA majority of investors who have put\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":101456,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-new-ura-rules-dont-impose-a-minimum-size\/","url_meta":{"origin":100442,"position":3},"title":"Govt: New URA rules don\u2019t impose a minimum size","date":"November 20, 2018","format":false,"excerpt":"\r The new URA guidelines do not stipulate a minimum built-up area for private properties and instead imposes higher average sizes. National Development Minister Lawrence Wong explained that new rules announced by the Urban Redevelopment Authority (URA) last month doesn\u2019t set a minimum size for private condos outside Singapore\u2019s central\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":120388,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/shrinking-sizes-of-new-condos\/","url_meta":{"origin":100442,"position":4},"title":"Shrinking sizes of new condos","date":"February 15, 2021","format":false,"excerpt":"\r Shrinking sizes of new condosThe impact of the government\u2019s move in 2018 to reverse the trend of developers constructing more shoebox units is starting to be seen. One such example is Hong Leong Group who commissioned bigger units in their projects such as Penrose.\u00a0 New condominiums in Singapore saw\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/02\/Penrose-facade-crop.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":100913,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/small-home-resales-hit-10-year-high-in-2017\/","url_meta":{"origin":100442,"position":5},"title":"Small home resales hit 10-year high in 2017","date":"November 5, 2018","format":false,"excerpt":"\r Sales of resale homes measuring from 500 to 800 sq ft hit a 10-year high of 1,466 units in 2017. Sales of small private condos slowly but steadily increased between 2014 and 2017, reported the Business Times, citing newly published research from OrangeTee & Tie. The study found that\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/100442"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=100442"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/100442\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=100442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=100442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=100442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}