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HISTORY OF STRATA TITLED LANDED CLUSTERED HOUSING FOR SINGAPORE PROPERTY INVESTOR

HISTORY OF STRATA TITLED LANDED CLUSTERED HOUSING IN SINGAPORE

Singapore’s strata titled cluster housing is a new form of housing type created in 1993 by Urban redevelopment authority (URA). The first ever development of this housing type is North Shore Bungalow in Punggol.

Compared to landed property which has many development controls in place which limits how the building can be enhanced or re-built, strata titled cluster landed housing has more freedom. In an earlier edition of Skyline, Nov/Dec 2001. Development controls were removed.

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“What controls are lifted

Five controls have been lifted in order to give architects and developers more

flexibility (see below). However, other controls like site coverage and the

provision of communal open space remain in place to protect the quality of

the environment in strata landed developments.

1. Building-to-building spacing control

2. Setback of units from strata boundaries

3. Maximum number of units for each development

Note: This control still applies to developments in Good Class Bungalow Areas, so

as to preserve the ambience and low-density, green environment of such areas.

4. Minimum plot width and plot frontage

5. Maximum footprint of individual strata detached house

Note: To ensure that strata landed developments do not become flats but

remain landed, at least 50 square metres of the building footprint must still

have contact with the ground.

On an estate level, architects will have more room to come up with interesting

layouts as they are no longer constrained by the need to ensure a minimum

distance between rows of landed housing.

With the lifting of the minimum plot width and plot frontage, individual

landed housing units can take on new shapes and designs instead of the

standard rectangular plots.” (Source: URA, Skyline, Nov/Dec 2001)

So essentially you can say that the Singapore Strata titled landed housing is more densely built-up due to removal of the: -

· Building-to-building spacing control.

· Control of setback of units from strata boundaries.

· Maximum number of units for each development.

· Minimum plat width and plot frontage.

By freeing up Strata titled landed housing developmental controls, the benefits are: -

· More unique and differentiated designs

· May come in smaller and affordable sizes compared to landed property.

Downside of freeing up Strata titled landed housing development controls are: -

· Too congested to live in.

· Can become very untidy and hard to blend into the landscape of surrounding landed properties.

· Traffic congestion to roads leading to the development.

The diversity caused much discomfort to Singapore’s landed property residents

As a result, the roads leading to such Strata titled landed developments becomes clogged with traffic. It was sometimes considered an eye-sore as such developments were too densely built. It was not because the buildings were ugly, it was rather that these development were incompatible with the surrounding architecture and landscape of landed properties.

As more and more of Strata titled clustered Housing were built, it was only a matter of time before the anger and disagreement spill over.

At one time, there was a fear that Urban redevelopment authority (URA) won’t listen to public feedback.

Kudos to Singapore’s Urban Redevelopment Authority (URA), a world leading city planner and statutory board. URA is very forward looking and receptive to public opinion.

“In 2007, URA carried out a Focus Group consultation exercise on

landed housing. The consultation process involved landed housing

residents as well as developers, architects, academics and other

property professionals. The feedback from the Focus Group

participants was that strata landed housing developments have

become very dense and congested. As a result, the quality of the living

environment and those of the surrounding area deteriorated as houses

within the strata landed development are packed very close together to

maximise the number of units. Such dense strata landed housing

developments have affected the overall character and living

environment of the landed housing estates where they are located.”

(Source: URA, 3 Nov 2008, Circular URA/PB/2008/20-DCD)

After concluding that strata titled clustered landed housing is getting a bit out of control, URA brought up the issue of congestion to the attention of Singapore Land authority (SLA) and Real estate Developers Association of Singapore (REDAS) who acknowledge the issue.

Effective from 3rd Feb 2009, Strata titled clustered landed housing in Singapore will be subject to re-imposition of development controls so as to reduce the number of housing allowed.

How to determine the maximum number of housing for Strata titled clustered housing?

For strata landed housing developments comprising only 1 type of housing form, the maximum number of units allowed will be determined by the following formula:

Number of allowable units ≤ (Total Site Area of Development / Y)

Where Y = housing types

• For terraces = 150 sq meters (~ 1,614sq feet)

• Semi-detaches = 200 sq meters (~ 2,152sq feet)

• Bungalow = 400 sq meters (~ 4,304sq feet)

In order to retain the characteristics of landed housing, all Strata clustered landed housing must maintain a footprint of 50 sq meters (~ 538sq feet) in contact with the ground.

This brings the Strata titled clustered housing closer to the proportions and size to that of landed housing in Singapore. With this new rule, future strata titled clustered housing in Singapore from 3rd Feb 2009 onwards will blend in better into landed housing in Singapore.

Example: Shamrock Villa which is believed to be built under the old ruling before 3rd Feb 2009.

For example, using Shamrock Villa in Singapore as an example, where the total size was a mere 23,008 sq feet (Approximate), it was able to build 11 bungalows ranging from 5,974 sq feet to 6,523 sq feet.

• House number 41 Namly place = 6,103 sq feet

• House number 43 Namly place = 6,168 sq feet

• House number 45 Namly place = 6,243 sq feet

• House number 47 Namly place = 5,974 sq feet

• House number 49 Namly place = 6,189 sq feet

• House number 51 Namly place = 6, 189 sq feet

• House number 53 Namly place = 6,383 sq feet

• House number 53A Namly place = 6,523 sq feet

• House number 53B Namly place = 6,351 sq feet

• House number 53C Namly place = 6,351 sq feet

• House number 53D Namly place = 6,114 sq feet

Total of 68,588 sq feet of saleable space.

Total land area of development = 23,008 sq feet (estimate)

In terms of plot ratio, 68,588 divided by 23008 would be 3 to 1. This is actually quite a high ratio for low rise residential housing. The number of units of 11 bungalows is also rather high.

Using the new URA ruling after 3rd Feb 2009, Shamrock villa Singapore would only be able to build: -

23,008 sq feet / 4,304 sq feet = 5 units of bungalow

OR

23,008 sq feet / 2,152 sq feet = 10 units of semi-detaches

OR

23,008 sq feet / 1,614 sq feet = 14 terraces

While the size of the units such as Bungalows, semi-detaches or terraces units will depend on the total size of development area’s plot ratio.

Conclusion on Strata Titled clustered landed housing in Singapore

Strata titled landed clustered housing built and approved to build before the 3rd Feb 2009 are more densely built together. This means that the developer would have maximized the size of each unit they build. Depending on how much the government charges for development charge for the change of use of land and/or change of plot ratio as well as prevailing construction costs and other factors, such developments could be quite profitable for some property developers.

• In the case of Shamrock Villa Singapore, assuming that the asking price is $5m a unit. 11 bungalows 0f $5m each = $55m.

As a hypothesis, the property developer could build only 5 units of bungalow under the new ruling. And assuming that a plot ratio of 3:1 is maintained. Each bungalow would then become: -

• 23,008 sq feet (land area of development) x 3 (plot ratio of 3:1) / 5 (units of bungalow) = 13,805 sq feet.

• Each bungalow would then have to be sold for $11m in order to achieve the same revenues of $55m.

It is doubtful whether the property developer could fetch that kind of prices given that the higher the price quantum, the lesser number of people could afford it.

With more limited building options, perhaps property developers may choose to build less of such strata titled landed clustered housing in the future or they could simply switch to building large strata titled clustered terraces instead. But terraces do not hold the same type of prestige as Bungalows.

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