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URA to stop developers from profitting off supersized luxury ECs: Khaw
By rachel chang
National Development Minister Khaw Boon Wan said Monday that he has directed the Urban Redevelopment Agency (URA) to tighten the rules on the developers of executive condominium (EC) projects to prevent them from launching luxury, super-sized units.
These million-dollar ECs, like a 4,349 sq ft "presidential suite" at the recent CityLife @ Tampines development that cost over $2 million, have created understandable public indignation, wrote Mr Khaw on his blog. This is because they are "deviations" from the EC scheme's original mission of providing housing for the sandwiched class - those over the income limit for an HDB flat, but who cannot afford private property.
Mr Khaw said that he was originally "baffled" that developers were "short-changing" themselves by launching such massive units, as they could have made more money by using the space for two or three normal-sized apartments.
After looking into the matter, he realised that developers were using a loophole in the rules to profit from the super-sized units. Currently, they do not have to pay development charges on outdoor roof terraces, as URA wants to encourage developers to build more communal outdoor space for residents to enjoy.
By rachel chang
National Development Minister Khaw Boon Wan said Monday that he has directed the Urban Redevelopment Agency (URA) to tighten the rules on the developers of executive condominium (EC) projects to prevent them from launching luxury, super-sized units.
These million-dollar ECs, like a 4,349 sq ft "presidential suite" at the recent CityLife @ Tampines development that cost over $2 million, have created understandable public indignation, wrote Mr Khaw on his blog. This is because they are "deviations" from the EC scheme's original mission of providing housing for the sandwiched class - those over the income limit for an HDB flat, but who cannot afford private property.
Mr Khaw said that he was originally "baffled" that developers were "short-changing" themselves by launching such massive units, as they could have made more money by using the space for two or three normal-sized apartments.
After looking into the matter, he realised that developers were using a loophole in the rules to profit from the super-sized units. Currently, they do not have to pay development charges on outdoor roof terraces, as URA wants to encourage developers to build more communal outdoor space for residents to enjoy.