Times, as anyone who has read a headline lately can tell, are tough. The world seems to be in a cycle of economic decline and hardship. As a result, the real estate market has seen a rise in demand for cheaper, smaller apartments, 500 square feet or under. Sometimes referred to as ‘shoebox apartments’, these one-person flats have sold like hotcakes in Singapore. In 2008, 300 units were sold. Last year, the number was 1,900, representing a 12% share of new private home sales, compared to 6% in 2008.
(Shoebox apartments are increasing in popularity.Image courtesy of thinkstock.)
While some may sniff at what can be a cramped style of living, shoebox apartments are excellent choices for singles or those on a tight budget. And that’s not all. In her recent article on the topic, Straits Times writer Denise Chong made the excellent point that shoebox apartments can be an indicator of the liveability of a city. “Your country or city as a whole,” she writes, “needs to be civilised before you can feel like a million bucks in 500 sq ft.”
Shaun Di Gregorio, CEO of iProperty Group, himself espoused the advantages of smaller-sized properties, citing the burgeoning affluence of the local populace and increasing property prices in Singapore as factors making shoebox units “attractive investment opportunities.”
What it sometimes comes down to, as the saying goes, is that size doesn’t always matter. Much like zippy pint-sized smart cars and staycations instead of vacations, the rise in popularity of sensible, no-nonsense shoebox apartments is a sign of the prudent times. In a time of global belt-tightening and economic cautiousness, small apartments represent both a sound investment strategy and viable living strategy. London, New York, Hong Kong and Tokyo, some of the busiest and most booming metropolitan areas in the world, are all cities where a shoebox apartment is often the norm, particularly for recent graduates or those just starting the climb up the property ladder.
In Singapore, there are a number of condos that cater to buyers looking for cosier living spaces. Spottiswoode 18 is one example. The 250-unit property, due to see buyers moving in at the end of 2014, has 150 one-bedroom units sized at 387 square feet, as well as 25 1+study units at 506 square feet.
In a June blogpost, National Development Minister Khaw Boon Wan commented on the future surge of shoebox apartments. He explained that “many of these units will be completed soon. By 2014, the total number of completed units will increase from 1,100 to 3,800, based on known plans.” He cautioned, however, the need for buyers to weigh the benefits and risks of their purchases. The smaller scale and layout of shoebox apartment can lead to prospective buyers misunderstanding the true scale of their new living space. “On our part,” he wrote, “we are requiring developers to give buyers an accurate representation of the units they are buying, both within the show flats and in the sales materials.”
Has all this talk of property given you food for thought? If you want to learn more about the local and international property market, investment opportunities and home living ideas, you can head to the iProperty.com EXPO: International Collection on October 29 and 30 at Marina Bay Sands.
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Related Categories: Issues & Challenges, Looking to Rent
Tags: condo singapore, investment, iProperty, Khaw Boon Wan, mickey mouse apartment, Real Estate, shoebox apartment, singapore property, Spottiswoode 18, square feet
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