Lifestyles and Quantum price.. when will people realise they are being conned ...
Shoe-box units shrink median price of developers’ sales
‘About five years ago, studio units were about 500 sq ft; now it’s common to find 350-400 sq ft units. Two-bedders used to be around 900-1,000 sq ft; now they could be 700-800 sq ft,’ said the developer who declined to be named.
While this trend is not expected to fizzle out anytime soon, developers may move away from the shoebox model when more of these projects are completed, and if these tiny units do not quite achieve their touted high gross rental yields of 8-10 per cent, says Mr Ow.
Agreeing, the developer said: ‘It may not be so easy to resell these units when they are completed as buyers can actually see how tiny the apartments are. I think this phase of exuberance in owning tiny apartments will fade when they’re ready for occupation. When more shoebox apartments are completed, the supply will be saturated vis-a-vis the demand.’
Buyers of these micky mouse units will realise only when they wake up to no resale value, and unsustainable rental yields. I was at the launch at Viva, some agents were showing the rentals from a nearby development, which in fact is a serviced apartment.
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