New property rules will affect prices: Redas

With developers expected to build fewer and bigger units, the overall average prices of new private apartments may rise on reduced future supply, analysts say.
With developers expected to build fewer and bigger units, the overall average prices of new private apartments may rise on reduced future supply, analysts say.PHOTO: ST FILE

The revised rules to cut the maximum number of private housing units allowed in a project outside the central area could price some buyers out of the market, said the Real Estate Developers' Association of Singapore (Redas).

With developers expected to build fewer and bigger units, the overall average prices of new private apartments may rise on reduced future supply, analysts say.

The rules, announced on Wednesday, kick in for new development applications submitted on or after Jan 17. The move will curb the proliferation of shoebox units and is aimed at reducing potential strains on infrastructure.

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A version of this article appeared in the print edition of The Straits Times on October 19, 2018, with the headline 'New property rules will affect prices: Redas'. Print Edition | Subscribe