New regulation to cap the maximum number of residential units was announced for non-landed residential development outside the central region. This is to ease the potential congestion caused by more cars and people imposed on the limited infrastructure if more small homes were built on suburban district unabated as noted in the past 3 years.
The formula is to multiply the development land area in square metre by its Master Plan allowable gross plot ratio. The maximum allowed number of units is derived by dividing the result by 70 sq m. This may mean that most units will have an average unit size of 70 sq m or a combination of small units balance by larger units within a development instead of predominately small units.
For potential congested areas like Telok Kurau, Kovan, Joo Chiat and Jalan Eunos, the cap on maximum number of homes is set at an average unit size of 100 sq m.
This rule which will come into effect on 4 Nov 2012 will ease the concern from residents who complained that cars often honk noisily when the road leading to condo was jammed and insufficient parking lots.
This move may benefit yet-to-be launched or unsold compact apartments developments and existing owners due to lesser future supply which may increase their selling price.
Most developers welcome this move as going forward they can now plan better on land banking to suit their business model.
5 Sep 2012