Will HDB and URA make $700m in profits after increase in parking charges?

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By: Leong Sze Hian

I refer to the article “Car parking charges to increase by year end, HDB and URA”.

20% increase?

It states that “For public car parks outside of the restricted zone or outside designated areas close to the restricted zone, the parking charge will be raised by S$0.10 from S$0.50 to S$0.60 per half hour. This applies to most residential areas in Singapore.

For public car parks within the restricted zone or within designated areas close to the restricted zone, the parking charge will increase by S$0.20 from S$1 to S$1.20 per half hour. This includes areas such as the CBD, Orchard, Outram and Rochor.”.

This is an increase of 20 per cent ($0.60 divided by $0.50).

SEASON PARKING RATES UP BY S$15 TO S$30 – 23 to 27% increase?

I also refer to news that season parking rates in HDB car parks will go up as well, with non-residents and those applying for season parking for a second or subsequent car paying more.
table-2a-season-parking-dataThis is an increase of 23 per cent ($80 divided by $65) and up to 26.7 per cent ($95 divided by $75).

40% increase?

For residents’ 2nd and subsequent car park lots in the same household and non-residents – the increase is as much as 40 per cent ($105 divided by $75).

Who’s subsidising who?

As to the remarks “We don’t want a situation where, inadvertently, we subsidise car parks — meaning to say, non-car owners subsidising car owners” – as the parking increase may likely be passed on to consumers by businesses – isn’t it more like both car owners and non-car owners subsidising the government’s coffers?

$576m profits?

According to the article, “Govt carpark rate hike a move to fleece Singaporeans and reap huge profits‘ – the net car parking profits (income less expenses) of the HDB and URA was $575.7 million for FY14/15.

$700m profits after the increase?

With the subject increase of about 20 per cent – does it mean that the profits may increase to about $690 million ($575.7 x 120%)?

As the car park charges increase is up to 40 per cent – perhaps the profits may be over $700 million.