Square Foot Research Singapore

Shoebox Units - Everybody's Watching 'Em

GuillemardEdge

In our very first Market Watch, we chose to look at none other than the shoebox phenomenon. A new set of cooling measures has been announced to cap the number of units in new developments located outside of the central area.

Shoebox units need no introduction. They have gotten much spotlight lately. In short, these are units less than 500 sq ft. They began to appear in bigger numbers in 2007/2008 but used to stay confined within the City and City Fringe districts. They have since made their way to the various mass market districts, where the rental market for such units is new, untested, and faces competition from HDB flats.

In fact, mass market dominates the shoebox market now. Based on caveats received so far in 2012 for shoebox units, approximately two-thirds are located in the mass market districts, nearly a two-fold increase from the previous year. Buyers with HDB addresses contribute more than half of the total purchases, from 55.7% last year to over 60% this year. However, there is no dominance of any price region by any particular addressee group, although one might be inclined to think that HDB dwellers are scooping up the lower priced units.

MND has announced that, effective from 4 November 2012, new developments located outside of the central area will be restricted in terms of the maximum number of units allowed to be built. The figure is based on the maximum allowable gross floor area (excluding any bonus) divided by an assumed unit size of 70 sqm.

Shoebox units are sold at 20-30% premium compared to larger units. The most expensive shoebox ever sold was a unit at Robinson Suites that was sold for $1.68m, or $3,399psf. The smallest shoebox ever sold was a mere 258 sq ft (the size of two and a half carpark lots) at Suites @ Guillemard.

We do see why shoebox units are well-liked. For owners of private properties, since they can no longer buy resale HDB flats without having to dispose their existing private properties, shoebox units become their only option given a budget of about $500,000. For HDB dwellers, it is a first step towards the private market. Given market prices are feeling very peak'ish, investors might want to limit any additional exposure to the property market, keeping investment sizes small.

Distribution of Shoebox Units

Note: Mouseover to see the property's name.
Source: URA, squarefoot.com.sg
Launched before 2008
Launched after 2008

Transaction Prices and Sales

Extreme Cases

Shoebox units less than 30 sqm

Source: URA,
Contract Date Project Name Tenure Area
(sqft)
Purchase Price
($)
Purchase Price
($psf)
Region Planning Area
1 Oct 2013 SUITES @ GUILLEMARD Freehold 258 508,000 1,966 Central Geylang
3 Apr 2013 SUITES @ GUILLEMARD Freehold 258 495,000 1,916 Central Geylang
15 Jun 2012 SUITES @ GUILLEMARD Freehold 258 495,000 1,916 Central Geylang
13 May 2011 KENT RESIDENCES Freehold 312 550,000 1,762 Central Kallang
28 Jan 2011 SUITES @ GUILLEMARD Freehold 258 423,000 1,637 Central Geylang
11 Nov 2009 SUITES @ GUILLEMARD Freehold 258 386,000 1,494 Central Geylang
9 Nov 2009 SUITES @ GUILLEMARD Freehold 258 381,000 1,475 Central Geylang
9 Nov 2009 SUITES @ GUILLEMARD Freehold 258 375,000 1,452 Central Geylang
9 Nov 2009 SUITES @ GUILLEMARD Freehold 258 391,000 1,514 Central Geylang
25 Apr 2008 KENT RESIDENCES Freehold 312 398,000 1,275 Central Kallang
1 Feb 2005 SELETARIS Freehold 280 130,000 465 North Sembawang
1 Apr 1999 MOUNTBATTEN LODGE Freehold 280 235,000 840 Central Marine Parade

Top 10 most expensive shoebox units

Source: URA,
Contract Date Project Name Tenure Area
(sqft)
Purchase Price
($)
Purchase Price
($psf)
Region Planning Area
23 Dec 2010 ROBINSON SUITES Freehold 495 1,683,000 3,399 Central Downtown Core
21 Dec 2010 ROBINSON SUITES Freehold 495 1,683,000 3,399 Central Downtown Core
3 Jan 2011 ROBINSON SUITES Freehold 495 1,683,000 3,399 Central Downtown Core
14 Dec 2010 ROBINSON SUITES Freehold 484 1,645,000 3,396 Central Downtown Core
27 Jan 2011 ROBINSON SUITES Freehold 495 1,653,000 3,338 Central Downtown Core
21 Dec 2010 ROBINSON SUITES Freehold 484 1,616,000 3,336 Central Downtown Core
14 Dec 2011 ROBINSON SUITES Freehold 495 1,650,000 3,332 Central Downtown Core
22 Dec 2010 ROBINSON SUITES Freehold 495 1,635,000 3,302 Central Downtown Core
27 Dec 2010 ROBINSON SUITES Freehold 495 1,621,000 3,274 Central Downtown Core
30 Dec 2010 ROBINSON SUITES Freehold 484 1,585,000 3,272 Central Downtown Core

Breakdown of Shoebox Purchases

Breakdown by Region

Source: URA, http://www.squarefoot.com.sg

Breakdown by Buyer Profile

Source: URA, http://www.squarefoot.com.sg

Recent shoebox transactions

Note: Based on purchases in the past 6 months excluding bulk purchases
Source: URA,
Project Name Tenure Average Price*
($)
Average Price*
($psf)
No. of
Transactions*
Region Planning Area
26 NEWTON Freehold 1,060,135 2,210 9 Central Region Novena
38 JERVOIS Freehold 1,080,000 2,280 1 Central Region Tanglin
6 DERBYSHIRE Freehold 1,063,463 2,245 2 Central Region Novena
8@WOODLEIGH 99 Yrs FROM 2008 643,000 1,614 1 Central Region Toa Payoh
AIRSTREAM Freehold 640,000 1,320 2 Central Region Kallang
ALEX RESIDENCES 99 Yrs FROM 2013 971,695 2,052 2 Central Region Bukit Merah
ALEXIS Freehold 682,500 1,669 2 Central Region Queenstown
BARTLEY RESIDENCES 99 Yrs FROM 2011 650,000 1,404 2 North East Region Serangoon
CARDIFF RESIDENCE 99 Yrs FROM 2011 590,000 1,406 2 North East Region Serangoon
CASA CAMBIO Freehold 659,750 1,435 4 North East Region Serangoon
CASPIAN 99 Yrs FROM 2008 632,000 1,365 1 West Region Jurong West
CENTRA HEIGHTS Freehold 638,000 1,482 1 Central Region Geylang
CENTRA SUITES Freehold 640,000 1,416 1 Central Region Geylang
CENTRAL IMPERIAL Freehold 472,500 1,126 2 Central Region Geylang
CITY LOFT Freehold 620,000 1,477 1 Central Region Kallang
COMMONWEALTH TOWERS 99 Yrs FROM 2013 821,107 1,800 15 Central Region Queenstown
CORALIS Freehold 868,000 1,753 1 Central Region Marine Parade
CUBIK Freehold 600,000 1,239 1 East Region Bedok
D'NEST 99 Yrs FROM 2010 580,000 1,197 2 East Region Pasir Ris
DUNEARN SUITES Freehold 745,000 1,821 1 Central Region Bukit Timah
EASTWOOD REGENCY Freehold 600,000 1,321 2 East Region Bedok
EIGHT RIVERSUITES 99 Yrs FROM 2011 730,000 1,654 3 Central Region Kallang
ESPADA Freehold 895,333 2,281 3 Central Region River Valley
EVERITT EDGE Freehold 565,000 1,313 2 Central Region Geylang
FULCRUM Freehold 925,500 1,954 2 Central Region Kallang
GEM RESIDENCES 99 Years Leasehold 750,000 1,659 1 Central Region Toa Payoh
GUILLEMARD EDGE Freehold 591,500 1,446 2 Central Region Geylang
HILLION RESIDENCES N.A. 646,804 1,384 33 West Region Bukit Panjang
IMPERIAL HEIGHTS Freehold 625,000 1,383 2 Central Region Geylang
ISUITES @ PALM 999 Yrs FROM 1878 605,500 1,308 1 North East Region Hougang
KINGSFORD WATERBAY 99 Yrs FROM 2014 599,099 1,238 26 North East Region Hougang
LA FIESTA 99 Yrs FROM 2012 640,000 1,416 3 North East Region Sengkang
LAVERNE'S LOFT Freehold 530,000 1,331 1 East Region Bedok
LE SOMME Freehold 685,000 1,383 1 Central Region Kallang
LEICESTER SUITES Freehold 738,000 1,594 1 Central Region Toa Payoh
LINCOLN SUITES Freehold 1,070,000 2,209 1 Central Region Novena
LIV ON WILKIE Freehold 998,000 2,208 2 Central Region Rochor
LOFT @ RANGOON Freehold 640,000 1,416 2 Central Region Kallang
M66 Freehold 585,000 1,181 1 Central Region Kallang
MACKENZIE 88 Freehold 720,000 1,593 1 Central Region Rochor
METRO LOFT Freehold 650,000 1,438 1 Central Region Geylang
MILLAGE Freehold 600,000 1,429 1 Central Region Geylang
NESS Freehold 552,667 1,243 3 Central Region Geylang
NEWEST 956 Yrs FROM 1928 680,000 1,436 1 West Region Clementi
ONAN SUITES Freehold 588,000 1,242 1 Central Region Geylang
PALM GALLERIA Freehold 650,000 1,313 1 East Region Bedok
PARC BLEU Freehold 615,000 1,329 1 East Region Bedok
PARC CENTROS 99 Yrs FROM 2012 620,000 1,309 3 North East Region Punggol
PARC IMPERIAL Freehold 675,000 1,695 1 Central Region Queenstown
PARC RIVIERA 99 Years Leasehold 569,558 1,228 77 West Region Clementi
PARC ROSEWOOD 99 Yrs FROM 2011 521,667 1,212 6 North Region Woodlands
PARC SOMME 99 Yrs FROM 2008 575,667 1,496 3 Central Region Kallang
PARK RESIDENCES KOVAN Freehold 606,500 1,708 2 North East Region Hougang
PEOPLE'S PARK COMPLEX 99 Yrs FROM 1968 515,000 1,259 1 Central Region Outram
PRESTIGE HEIGHTS Freehold 588,000 1,532 4 Central Region Novena
PRESTO@UPPER SERANGOON Freehold 605,000 1,405 1 North East Region Serangoon
PRIMO RESIDENCES Freehold 600,000 1,212 1 North East Region Hougang
PRINCIPAL GARDEN 99 Years Leasehold 799,278 1,634 18 Central Region Bukit Merah
QUEENS PEAK 99 Years Leasehold 761,929 1,653 183 Central Region Queenstown
RESIDENCES 88 Freehold 564,000 1,295 2 East Region Bedok
REZI 26 Freehold 540,000 1,224 1 Central Region Geylang
REZI 3TWO Freehold 712,833 1,553 3 Central Region Geylang
RIPPLE BAY 99 Yrs FROM 2011 566,444 1,170 2 East Region Pasir Ris
RIVERBANK @ FERNVALE 99 Yrs FROM 2013 578,000 1,167 1 North East Region Sengkang
RIVERSOUND RESIDENCE 99 Yrs FROM 2011 548,000 1,157 1 North East Region Sengkang
ROBIN SUITES Freehold 1,006,838 2,183 13 Central Region Tanglin
ROYCE RESIDENCES Freehold 530,000 1,232 3 Central Region Geylang
RV RESIDENCES 999 Yrs FROM 1877 950,075 2,180 2 Central Region Tanglin
RV SUITES Freehold 895,000 1,808 1 Central Region Tanglin
SIGLAP V Freehold 700,000 1,414 1 East Region Bedok
SILVERSCAPE Freehold 540,000 1,320 1 Central Region Geylang
SIMS EDGE Freehold 600,000 1,467 1 Central Region Geylang
SIMS URBAN OASIS 99 Yrs FROM 2014 719,780 1,511 14 Central Region Geylang
SINGA HILLS Freehold 700,910 1,514 1 East Region Bedok
SKIES MILTONIA 99 Yrs FROM 2012 572,500 1,182 2 North Region Yishun
SKY VUE 99 Yrs FROM 2013 844,500 1,719 3 Central Region Bishan
SKYLINE RESIDENCES Freehold 1,038,800 2,145 1 Central Region Bukit Merah
SKYSUITES17 Freehold 610,000 1,667 2 Central Region Novena
SKYSUITES@ANSON 99 Yrs FROM 2008 880,000 2,210 1 Central Region Downtown Core
SMART SUITES Freehold 670,000 1,383 1 Central Region Geylang
SOL ACRES 99 Years Leasehold 367,000 741 2 West Region Choa Chu Kang
SOLEIL @ SINARAN 99 Yrs FROM 2006 877,000 1,771 1 Central Region Novena
SPOTTISWOODE SUITES Freehold 1,030,000 2,334 1 Central Region Bukit Merah
SPRING @ LANGSAT Freehold 608,000 1,284 1 Central Region Geylang
SUITES 28 Freehold 538,000 1,250 1 Central Region Geylang
SUITES @ GUILLEMARD Freehold 550,000 1,348 2 Central Region Geylang
SUITES @ NEWTON Freehold 919,800 1,899 2 Central Region Novena
SUITES @ PAYA LEBAR Freehold 500,000 1,366 1 North East Region Hougang
SUITES @ SIMS Freehold 550,000 1,597 1 Central Region Geylang
SUITES AT BUKIT TIMAH Freehold 600,000 1,593 1 Central Region Bukit Timah
SUITES@BRADDELL Freehold 560,000 1,334 2 North East Region Serangoon
SUITES@CHANGI Freehold 591,000 1,339 2 Central Region Geylang
SYCAMORE TREE Freehold 565,000 1,547 2 Central Region Marine Parade
THE ALPS RESIDENCES 99 Years Leasehold 531,579 1,138 85 East Region Tampines
THE CREEK @ BUKIT Freehold 825,055 1,782 6 Central Region Bukit Timah
THE GLADES 99 Yrs FROM 2013 742,216 1,566 19 East Region Bedok
THE HILLFORD 60 Yrs FROM 2013 493,800 1,240 1 Central Region Bukit Timah
THE INTERWEAVE Freehold 597,000 1,510 4 Central Region Novena
THE LAKEFRONT RESIDENCES 99 Yrs FROM 2010 735,000 1,484 1 West Region Jurong West
THE NAUTICAL 99 Yrs FROM 2011 554,000 1,256 2 North Region Sembawang
THE POIZ RESIDENCES 99 Years Leasehold 640,913 1,527 23 Central Region Toa Payoh
THE SANTORINI 99 Yrs FROM 2013 555,000 1,199 1 East Region Tampines
THE SCALA 99 Yrs FROM 2010 715,000 1,510 1 North East Region Serangoon
THE TEMBUSU Freehold 813,500 1,714 1 North East Region Hougang
THE VERVE Freehold 670,000 1,518 1 Central Region Novena
THE WATER EDGE Freehold 510,000 1,281 1 Central Region Geylang
THE WISTERIA 99 Years Leasehold 543,900 1,232 1 North Region Yishun
THOMSON IMPRESSIONS 99 Years Leasehold 735,667 1,589 22 Central Region Bishan
TREASURES@G6 Freehold 609,671 1,338 6 Central Region Geylang
TROPIKA EAST Freehold 628,000 1,459 1 East Region Bedok
V ON SHENTON 99 Yrs FROM 2011 1,235,764 2,659 7 Central Region Downtown Core
VACANZA @ EAST Freehold 621,444 1,283 2 East Region Bedok
VIBES @ EAST COAST Freehold 520,000 1,380 1 East Region Bedok
VIENTO Freehold 583,000 1,231 1 Central Region Geylang
VIVA VISTA Freehold 590,000 1,523 1 Central Region Queenstown
VIVACE 999 Yrs FROM 1841 879,000 2,067 2 Central Region River Valley
WATERBANK AT DAKOTA 99 Yrs FROM 2009 732,000 1,511 1 Central Region Geylang

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This report provides information as reference resource for your personal consumption only. It is not intended to be and does not constitute financial advice, investment advice or any other advice. This report has been generated without regard to the individual financial circumstances, needs or objectives of persons who view it. Users should not rely on any of the information herein as authoritative or substitute for the exercise of their own skill and judgment in making any investment or other decision. By the use of our services, you agree that any and all use of this report which you make, is solely at your own risk and without any recourse whatsoever to Square Foot Research Pte. Ltd., its related and affiliate companies and/or their employees. Square Foot Research Pte. Ltd. makes reasonable effort to use reliable and comprehensive information to generate this report, but we make no representation that it is accurate or complete.

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