Why do HDB and URA need to increase carpark charges?

Inflation, as well as costs of operating public car parks, have increased significantly.

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Our general approach has been to ensure that car owners pay a fair share of the cost of carparks by recovering the cost through carpark charges.

While carpark charges have not changed since 2002, inflation as well as costs of operating public car parks have increased significantly. Since 2002, core-inflation has risen by about 30%. Total costs of operating public carparks have increased even more over the same period, by a total of about 40%.

For HDB carparks, which account for 90% of carparks in Singapore, costs have increased due to several factors:

  • Rising overheads in the construction industry;
  • Improvements to new and existing HDB carparks, such as installing multi-storey carparks with lifts, and providing link bridges to connect carparks to surrounding flats; and
  • Additional repair works required to maintain an increasing number of ageing carparks.

Without the fee revision, HDB projects that it will face an average deficit of more than $100m annually in the coming years.

For URA’s many carparks in the city centre, parking charges are set higher than HDB carparks in order to appropriately manage parking demand. Despite this, without the fee revision, URA expects to incur a deficit in its carpark activity.

Source: HDB & URA

This article is accurate as of Jul 2016.

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