More communal space, greenery for cluster housing

SINGAPORE — Developers of future cluster housing developments will need to reserve nearly half of their projects for communal open space, the Urban Redevelopment Authority (URA) said yesterday, in a move that will result in more greenery and communal facilities, but also see fewer sellable units.

Under revised guidelines by the URA, which take effect today, a new set of formulae will determine the maximum number of houses developers are allowed to build in various types of strata landed housing developments, which will generally result in fewer units.

Developers will be required to set aside 45 per cent of land for communal open space, up from the current 30 per cent.

Of this, at least 25 per cent will have to be set aside for on-ground greenery, while up to 20 per cent may be used for communal facilities, such as swimming pools and playgrounds.

Cluster housing is a form of landed property that comes with strata titles. Such homes are built in clusters within a gated housing estate with shared facilities similar to those in condominiums.

The revised guidelines “address feedback from residents in landed housing estates that such developments could inject a disproportionately large number of units … creating a more congested living environment,” the URA said in a statement yesterday.

Property analysts said yesterday that while the new rules will probably result in fewer sellable units, the direct impact on pricing and buyer demand should be limited, although interest from developers could wane.

“Under the new guidelines, developers may have to build at a loss of revenue because the social value of having more communal space cannot translate directly into monetary value. But prices are still largely dependent on market conditions,” said Mr Alan Cheong, senior director for research at Savills.

“Considering these factors, cluster housing developments may become less appealing to developers. But I don’t see this causing any substantial change to the private property sector — the cluster housing segment is only a very small part of the more than 800,000 landed units in Singapore.”

Mr Nicholas Mak, SLP International’s executive director for research and consultancy, added: “There is always a good support level for the demand for landed housing in Singapore, but market conditions still dictate prices. The developers may try to raise prices to factor in the better environment, but the increment will likely be limited, especially if the estate is launched amid softer market sentiments.”

The URA’s latest announcement serves as a complementary initiative to the LUSH (Landscaping for Urban Spaces and High Rises) 2.0 programme introduced in June this year.

The programme combines a slew of requirements and incentives to encourage developers to include more green communal spaces, such as landscaped decks or roof gardens, in residential and commercial buildings.

Against this backdrop, it will not be a surprise if the Government extends the new guidelines to include other types of developments in the future, Mr Cheong said. “The movement now is to return from a functional living space to having a more liveable space and in the past few years, we have seen the Government tightening the development guidelines … It’s possible these policies will be expanded to other developments,” he said.