Shoebox apartments. Property developers are cooking up more of these as they are clearly the quick and sure money-makers in this day and age.
For these small private condominium units usually under 500 sq ft, the total price quantum is much lower and more palatable for the standard buyer looking to invest. It is also easy to manage mortgage payments. Another way developers keep prices affordable is to forego engaging award-winning designers. Practicality trumps in the current market. Take Sky Vue by CapitaLand for example, unlike the nearby Sky Habitat which is designed by a world-renowned architect Moshe Safdie who is also the brains behind the design of the Marina Bay Sands, this new condo project is designed by local firm, DCA Architects.
Average home sizes in Singapore are being constantly, and growing smaller as the population density increases with a growing overall population. At Sky Vue, the smallest unit stands at 710 sq ft, which is already bigger than some of the tiny shoebox units out there. This could be a compromise between CapitaLand’s previous stand of not building shoebox apartments and the current market situation where exorbitant land prices are pushing developers to think of ways to make the most out of their purchase.
Whether these recent moves are a reaction to poorly home sales caused by property cooling measures of simply a reflex action as inflation and increasing land prices take lead, property developers are quick at finding ways to get around the problem. Some have offered discounted prices for unsold units, for example at d’Leedon, The Interlace and even the popular Sky Habitat.
The market’s reaction in this last quarter of the year will be interesting and may just be an indication of how the real estate sector next year will fare.