Statistics released by the Urban Redevelopment Authority confirmed the growing sales trend for compact units or "shoebox" apartments. The category of property with area less than 50 sq m commands 27% of sales in Q1 2012 which is a record for such apartments which were first available in the market about 3 years ago.
Analysts noted that such units are being marketed as developers are still trying to make their units affordable and this trend will continue at the moment as prices are quite stable and they are well received by the investors and owner occupiers.
The statistics also showed that units with less than 75 sq m made up more than 50% of the total number of units sold in the same quarter. As developers are launching more small units for sale, this has lead to price increase for uncompleted non-landed properties.
A study of caveats lodged revealed that the median size of units in new mass-market launches has decreased steadily from 980 sq ft in Q2 2011 to 710 sq ft in Q1 2012.
The URA index showed that private property prices in the suburbs were up 1.1%, while property prices in the city and fringes were both down by 0.6% in the same quarter.
28 Apr 2012