Certain suburban property districts now have a quota of how many and how small studio apartments or shoebox units can be built within specified sites. These areas include Telok Kurau, Joo Chiat, Jalan Eunos and Kovan. The central districts are unaffected.
Property developers however were not in a rush to capitalise on sales or rush the submission of building plans before the cap kicked in on 4 November. The Urban Redevelopment Authority (URA), has apparently already begun clamping down on the number of new shoebox units since last year.
Is this a timely move by URA, and will the existing shoebox apartments become rare commodities since fewer will enter the market from hereon?
Perhaps not so soon, as this property type is still very popular with home buyers and investors. And as the society becomes more diverse, there will continue to be a demand for them, either for sale or rent. Land cost in Singapore is increasing, despite the government’s reassurance that there is an ample supply to go around. This, plus demand, could be deciding factors in the pricing of new residential units.