Written Answer by Ministry of National Development on deriving new parking rates
Sep 13, 2016
Mr Muhamad Faisal Abdul Manap: To ask the Minister for National Development how is the new parking rate with effect from 1 December 2016 tabulated and derived.
Answer:
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 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 3 in 10 HDB households own cars, i.e. the majority of our residents do not own cars .
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 carparks, are set at a higher charge to reflect the full cost recovery rate.