{"id":121095,"date":"2021-07-27T03:05:03","date_gmt":"2021-07-26T20:05:03","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/higher-construction-costs-not-to-be-passed-down-to-flat-buyers\/"},"modified":"2021-07-27T12:07:56","modified_gmt":"2021-07-27T05:07:56","slug":"higher-construction-costs-not-to-be-passed-down-to-flat-buyers","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/higher-construction-costs-not-to-be-passed-down-to-flat-buyers\/","title":{"rendered":"Higher construction costs not to be passed down to flat buyers"},"content":{"rendered":"


\nThese higher construction costs stem from factors such as increased manpower costs and reduced productivity due to having to implement safe management measures.
\nDespite the increase in construction costs due to the COVID-19 pandemic, the Government will not pass down the higher cost to homebuyers, said Minister of State for National Development Tan Kiat How in Parliament on Monday (26 July).
\nHe explained that the higher cost was due to several factors, including an increase in manpower costs due to border measures limiting the entry of foreign workers as well as additional costs and reduced productivity due to the implementation of safe management measures at worksites.
\nHe shared that the Government has rolled out various support measures, such as wage offsets, to help mitigate some of the cost increases facing construction companies.
\nNonetheless, tender prices for public sector construction projects, which include public housing and upgrading projects, have \u201cgenerally increased this year compared to pre-COVID levels\u201d.
\n\u201cWe recognise that public housing projects are necessary to serve the needs of Singaporeans, so we will press on to deliver these projects, and maintain a steady supply of public housing to meet demand,\u201d said Tan.
\n\u201cIncrease in cost will not be passed down to flat buyers.\u201d
\nTan made the statement in response to Member of Parliament Tin Pei Ling\u2019s question on how the pandemic impacted construction costs in Singapore.
\nHe also revealed that the hike in construction costs had no adverse effect on demand for green buildings.
\nIn fact, the gross floor area (GFA) of developments \u201capplying for Green Mark certification has remained steady at around half of overall construction demand since 2018\u201d.
\n\u201cOne possible explanation is that the cost premium of fulfilling the Green Mark requirements is small in proportion to overall construction costs, at less than 5% for most projects.\u201d
\nMoreover, the energy savings derived from greening a building outweigh the upfront investment costs, he said.
\nAn office building with more than 15 storeys that achieves Green Mark Platinum standard, for instance, can save about $300,000 in operating costs annually.
\n\u201cThe Government remains committed to pursue our sustainable development agenda under the Singapore Green Plan 2030,\u201d said Tan.
\n\u201cSome infrastructure projects may face construction delays in the immediate term, but we will press on with our plans and sustainability efforts,\u201d he added.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Higher construction costs not to be passed down to flat buyers<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

These higher construction costs stem from factors such as increased manpower costs and reduced productivity...<\/p>\n","protected":false},"author":1,"featured_media":121096,"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-121095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/HDB-BTO.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vv9","jetpack-related-posts":[{"id":121599,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/town-council-upgrading-projects-scaled-down-or-delayed-due-to-hike-in-construction-costs\/","url_meta":{"origin":121095,"position":0},"title":"Town council upgrading projects scaled down or delayed due to hike in construction costs","date":"August 23, 2021","format":false,"excerpt":"\r Town council upgrading projects scaled down or delayed due to hike in construction costsConstruction and renovation costs have increased by 20 to 50%, resulting in town council upgrading projects being scaled down or completion timelines being\u00a0delayed by several months. 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