Reasons for Increase in Rates at HDB and URA Car Parks
Ministry of National DevelopmentSpeakers
Summary
This question concerns the reasons for increased HDB and URA parking charges, with Mr Alex Yam inquiring about cost drivers, affected vehicle numbers, and assistance for older owners. Minister Lawrence Wong stated that construction overheads, capital expenditures for lifts and shelters, and maintenance for aging car parks have raised total costs by 40% since 2002. He explained that differentiated season parking rates ensure residents pay lower charges for their first car while charges for subsequent cars reflect full cost recovery. This pricing structure affects approximately 31,500 HDB households, representing 12% of the car-owning resident population. The Minister concluded that the government currently has no plans to provide additional subsidies for other groups of car owners.
Transcript
20 Mr Alex Yam asked the Minister for National Development with the recently announced increase in parking charges for URA and HDB car parks (a) what has been the main increase in cost in maintaining and operating car parks that require the increase; (b) what is the number of vehicles that will be affected by the differentiated season parking charges for second cars; and (c) whether there will be any assistance provided for older vehicle owners who may face difficulties with the increased season parking or hourly charges.
Mr Lawrence Wong: 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 the Housing and Development Board (HDB) residential car parks have increased even more, by a total of about 40%.
The main increase in cost is due to: (a) rising overheads in the construction industry; (b) more capital expenditures in new and existing HDB car parks, such as lifts and roof-shelters at multi-storey carparks; and (c) additional repair works required to maintain an increasing number of ageing car parks.
In reviewing the parking rates, we 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. This applies to about 31,500 HDB households, or around 12% of the 261,400 HDB households who own cars. We currently do not have plans to further subsidise other groups of car owners.