Huttons' comments on the Guidelines on Dwelling Units in Non-Landed Residential Developments in Central Area | Huttons Group

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Huttons’ comments on the Guidelines on Dwelling Units in Non-Landed Residential Developments in Central Area

Huttons Research

With effect from 18 Jan 2023, all non-landed homes within the Central Area will need to have a minimum of 20% of dwelling units with a nett internal area of at least 70 sq m.

The Central Area covers 11 Planning Areas :Outram, Museum, Newton, River Valley, Singapore River, Marina South, Marina East, Straits View, Rochor, Orchard and Downtown Core.
The change will probably see slightly more bigger units in the future but the overall impact on the market is likely to be minimal. Currently most if not all projects in the Central Area are in compliance with this new rule.
Investors however may have less smaller units to buy in the future. They may have to buy smaller units from the resale market and drive up prices of such smaller units.
Some of the enbloc sites in the Central Area and the Marina Gardens Lane may be affected by this rule change. Together with the increase in land betterment rates and changes to how gross floor area is computed, the costs to developers will rise considerably and eat into the margins of developers. Developers may re-assess potential bids for enbloc sites. This may affect the success rate of some en-bloc sites in the Central Area.

 

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