http://www.straitstimes.com/Breaking...ry_683482.html
Jun 24, 2011
Buying flats called shoeboxes: Khaw's new blog
By Tan Herng Yih
MINISTER of National Development Khaw Boon Wan shared his thoughts on his latest blog on Friday regarding very small apartments popularly labelled 'shoe-box' units here in Singapore.
Shoe-box units are typically below 500 square feet, and there has been an increasing demand for it. Mr Khaw wrote this blog post on Friday titled: 'Buying Shoe Boxes?'.
He wrote on his blog (as is carried here): 'Many Hong Kong apartments are almost shoe-boxes; Tokyo too. Singaporeans are however house proud and we want our apartments to be cosy, comfortable and spacious. Most will not have land, but they must not be claustrophobic.
'The emergence of shoe-box units here is a recent phenomenon. And it seems to have a demand. The annual take-up of such units has tripled from 300 units in 2008 to 1,900 in 2010, or from 6% to 12% of developers' sales over the same period.
'Industry analysts and developers made these comments to me about shoe boxes. First, 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. Second, some developers who bid high prices for sale sites, are planning to build shoe-box units, adding to the build up. Third,
the newer shoe-box developments are in the suburbs. Their appeal to tenants remains untested.
'Some analysts wonder aloud if buyers know what they are in for. Some have suggested that the government should step in to impose a minimum size. My instinct is not to second guess the market. Some shoe-box units do add to the diversity of housing options here. But we are closely watching its development.'
Read the remainder of Mr Khaw's blog post here:
http://mndsingapore.wordpress.com