Formula Used in Deriving New Public Parking Rates

66 Mr Muhamad Faisal Bin Abdul Manap asked the Minister for National Development how is the new public parking rate with effect from 1 December 2016 tabulated and derived.

Mr Lawrence Wong: In determining public car parking charges, the key principle is that car owners bear the full cost of ownership and usage of cars. This includes the cost of parking cars. Hence, parking charges in our Housing and Development Board (HDB) estates are sized to cover the cost of building, operating and maintaining residential car parks. It would not be equitable for the Government to subsidise the cost of parking, as this would mean that non-car owners are subsidising car owners. Today, about three in 10 HDB households own cars, that is, the majority of our residents do not own cars.⁶

While car park charges have remained constant for the last 14 years, costs have increased over this same period. Since 2002, core inflation has risen by about 30%. The total costs of building, operating and maintaining HDB residential car parks have increased even more, by a total of about 40%.

In reviewing the parking rates, we have also differentiated the HDB season parking charges such that residents pay a lower season parking rate for their first car. Season parking rates for subsequent cars, or non-residents who use HDB car parks, are set at a higher charge to reflect the full cost recovery rate.