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28-04-2012, 06:56 AM
The Straits Times
Apr 28, 2012
Shoebox units make up 27% of new sales
THOSE tiny homes known as shoebox apartments now account for more than a quarter of private home sales, a big jump from about 15 per cent late last year.
The latest figures, for the first quarter of the year, show that 1,764 shoebox units were sold, representing about 27 per cent of the 6,526 private home sales.
These are small homes of about 540 sq ft or less.
As recently as the fourth quarter of 2011, shoebox flats accounted for slightly over 15 per cent of the total new sales.
This is the first time the Urban Redevelopment Authority (URA), which released its quarterly real estate statistics yesterday, has made available data on shoebox units in the report.
It included statistics from as early as 2007, when such small units constituted less than 5 per cent of private home sales.
Across the market, 42 per cent of new sales in the quarter were priced below $750,000. Many of these units are in the suburbs, with a hefty 82 per cent of all new unit sales outside the central region.
Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, said the figures indicate that developers are launching more small units - one- and two-bedders - for sale. 'The increase in prices of uncompleted non-landed properties is probably due to smaller units sold with higher per square foot prices,' he said.
The median size of units in new mass market launches has dived from 980 sq ft in the second quarter of 2011, to 710 sq ft in the first quarter of this year.
Median per sq ft (psf) price in the first quarter was $1,102, while it was $949 in the second quarter of last year.
Property consultants said that HDB upgraders are the main buyers of shoebox units, which tend to be cheaper in terms of the overall price.
Some experts suggested that the release of shoebox statistics could mean the Government is scrutinising this sector.
SLP International Property Consultancy's head of research Nicholas Mak said the Government may look at limiting the number of shoebox units in some areas. 'This could result in cooling the property market and moderating price increases.'
Another way to curb rising demand would be to give limited financing to investors who buy shoebox flats.
'Going by the latest figures, one in four home buyers are getting shoebox units... how many people do you know live in one? The Government might introduce measures to prevent construction of not so useful space, and instead build bigger units which are more usable for families,' Mr Mak said.
AMANDA TAN
Apr 28, 2012
Shoebox units make up 27% of new sales
THOSE tiny homes known as shoebox apartments now account for more than a quarter of private home sales, a big jump from about 15 per cent late last year.
The latest figures, for the first quarter of the year, show that 1,764 shoebox units were sold, representing about 27 per cent of the 6,526 private home sales.
These are small homes of about 540 sq ft or less.
As recently as the fourth quarter of 2011, shoebox flats accounted for slightly over 15 per cent of the total new sales.
This is the first time the Urban Redevelopment Authority (URA), which released its quarterly real estate statistics yesterday, has made available data on shoebox units in the report.
It included statistics from as early as 2007, when such small units constituted less than 5 per cent of private home sales.
Across the market, 42 per cent of new sales in the quarter were priced below $750,000. Many of these units are in the suburbs, with a hefty 82 per cent of all new unit sales outside the central region.
Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, said the figures indicate that developers are launching more small units - one- and two-bedders - for sale. 'The increase in prices of uncompleted non-landed properties is probably due to smaller units sold with higher per square foot prices,' he said.
The median size of units in new mass market launches has dived from 980 sq ft in the second quarter of 2011, to 710 sq ft in the first quarter of this year.
Median per sq ft (psf) price in the first quarter was $1,102, while it was $949 in the second quarter of last year.
Property consultants said that HDB upgraders are the main buyers of shoebox units, which tend to be cheaper in terms of the overall price.
Some experts suggested that the release of shoebox statistics could mean the Government is scrutinising this sector.
SLP International Property Consultancy's head of research Nicholas Mak said the Government may look at limiting the number of shoebox units in some areas. 'This could result in cooling the property market and moderating price increases.'
Another way to curb rising demand would be to give limited financing to investors who buy shoebox flats.
'Going by the latest figures, one in four home buyers are getting shoebox units... how many people do you know live in one? The Government might introduce measures to prevent construction of not so useful space, and instead build bigger units which are more usable for families,' Mr Mak said.
AMANDA TAN
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