Wrong Time To Invest In Shoe-Box Apartment?

[HomeSWEETHome01 0]

Due to rising Property price and increasing numbers of influx in foreign expats, many feel that this is the right time for property investments.

Shoebox apartments are highly popular due to their low cost and high demand from foreigners.

However recently I read an article about drastic increase in number of shoebox apartment in coming years. according to the article may be 3 times the current amount. This may affect the supply and therefore price of the apartments drastically.

This is my own personal observation and views, and would like to hear more opinions from the public?

anyway here is the article

[kellogs 0]

govt should bans all these MM units ... Singapore should not be made into another HK

[bepgof 20]

govt should bans all these MM units ... Singapore should not be made into another HK

Be reasoning, logical yet critical. This is the sociological trend driven by "needs" conditions.

- small family unit structure.

- freedow in society cultural encourages youngs, unmarried, stay away from parents.

- Less economical constraints = "easiler" to flip, as compared to those 2,3,4,5 beders.

- Sub-urban less obvious, city/cbd/close to cbd/mrt - very obvious.

- Gen X who stressed "family", is dying.

- Gen Y, Z generations rising- dare to speak, freedom, individualism, "committments" to oneself only not to others.

Critically?

- Gov is smart and till "family-oriented" - it will do something if these shoeboxes encourage "somethings" which lead to "somethings" "no good" in the "social, community, country". The 2 forces are now in invisible power play.Let's wait & see.

[HomeSWEETHome01 0]

I really dont think that these houses are even ment for small families.

400 square feet? or less? thats barely enough for a single room.

[kellogs 0]

I really dont think that these houses are even ment for small families.

400 square feet? or less? thats barely enough for a single room.

that is correct ... those whom bought into this MM does not understand the real size of these units till it is TOP ...

Once they got the key and open up the door ... the reality would sat it and by then it would be too late.

good luck

[kalimantan 6]

that is correct ... those whom bought into this MM does not understand the real size of these units till it is TOP ...

Once they got the key and open up the door ... the reality would sat it and by then it would be too late.

good luck

When reality sat by then (single , then plan to get married) then i buy from them at 50 % discount ...

[bepgof 20]

I really dont think that these houses are even ment for small families.

400 square feet? or less? thats barely enough for a single room.

SB is meant for single or "partners", not "family necleus", must got this clear. Believed the "occupant"(mobile residents) exchange rate super fast. Universal rule applies - early entry allows easily exit. 80% buyer are singaporean. Small area = high psf price = develope gain.

Put it bluntly, it is equivalent to those sizes of rooms rented out for 2-hour..., eg H81, those along Bencoolen st which got "highlighted" in the recent case of 48 men(more to come) vs 1 underaged girl.

Can imagine the surrounding if whole block is with all these SBs? Go visit Geylang, balastier, bencoolen, Joo chiat, IP...u'll understand what I mean. If got chance, bring Kah, Home affairs min to visit these places....

Buy with due cares.

[bepgof 20]

that is correct ... those whom bought into this MM does not understand the real size of these units till it is TOP ...

Once they got the key and open up the door ... the reality would sat it and by then it would be too late.

good luck

Size itself is not the issue, just like money itself is not root of evil......

However, small sizes (less $ comparatively, easy in/out, etc)encourage and path way to "certain things".......impact social morality, personally I view this way. Kah knows( he avoid pre-conclusive statements), just he did not spell as details as I do.

Will take quite sometime (probably 10yrs?) or so for the "culture" minister to collect "facts",amend rules,....by the time severe "internal injury" done. Human learns through mistakes in history, interesting, history repeats itself.

So...pls see through ?Or wait & see first?. Act when necessary depending on urgency and importance.

I acted and duly "performed" duty of a responsible citizen on issues like casino (act pressure to gov through church), PSLE mother tongue weight downsize (see MP and "warned" him the seriousness, feedback to PM)....

[yoongf 11]

I am surprised to see such comments about shoebox units.

Everything got demand and supply logic. Do we need the govt to tell us what to do? If u dun like something, dun buy, dun go. Making statements like.. "I think is no good, means it can't be good for everyone, therefore ban everyting", is like suggesting that everything shd be padded in sg to cater to the dumbest person in sg.

So.. slow driver say.. lambogini too fast to drive.. so shd ban all sports cars?

Everyone got life stages. We start off 3rm HDB and eventually end up with a GCB. So.. since everyone aspire for GCB, we might as well say.. ban 3rm and only sell GCB? Can't ppl see that shoebox is now a baby step before 3Rm? Let's not forget.. most of us got a room in our parents homes.. say.. 150 sqft... and then move to 3rm with spouse at 700sqft. Shoebox is a stepping stone between that 150 sqft and 700sqft. And shoebox comes with carpark lot. Think of it that way.

Shoebox is never meant to be the permanent home of a person's entire life.

It's ideal as a stepping stone from parents home to the matrimonial home.

It's ideal as the rental apt for the budget FT with family.

I have seen many shoebox buildings, and they are all fully occupied, and very happy residents.

The unique features of shoebox buildings are:

1. Mostly singles.. so.. very similar neighbours. All busy working professionals, and no kaypoh chuay tai zi auntie neighbours.

2. Mostly young age group.. so.. same expectations... willing to spend on aircon lift lobbies etc.

3. No funny neighbours like karung guni types.

So far.. I have seen many negative comments about shoebox and mostly come from ppl who have no experience with shoebox.

If shoebox is a bad investment, why do we not read of any lelong case of shoebox?

I find this negative comment trend very disturbing.

We shd all ask ourselves.. what's the purpose of such comments.

Why are we asking govt to take action?

In the ideal society, do we need a nanny, or are we competent enough to make own decisions?

Does it matter if others decide to make their own investment decisions?

[bepgof 20]

Quality arguments indeed. Hard to come by here, my appreciation.

I went a bit "further" by telling my "anticipation" of those "social issues" that might bring upon when these shoebox unit get "more & more". How many is defined as more? I don't know. 2008 < 500, 2009 almost 1,000, 1,999 in 2010, 2,400 in 2011. These are facts.

URA has imposed somethings and is watching, more may come, other pty agencies also very keen to know the consumption/resale patterns. Even got "professional paper" on sale for $14 for in depth "arguments"..... So, at this pt of time, it is premature to conclude anything.

Personally "feel" that these shoebox units subject to "higher resistance to resale" in the open mkt, at least at present prevailing conditions. Another -ve comment? As I've mentioned, it is not the "size" that matters, but human is good at making use of such to make their "own convieniences" which MAY result in some BAD....I've seen too many liao. Ask cabbies for "tips" next time u board a cab.

I feel should recognise each's "freewill" to express anything out of any expressed or hidden intentions as long as not flouting rules set by forum owner.

Society can NEVEN be in ideal, I studied Marxism vs Communism vs Capitalism. All mankind when in the form of "community" -always in the forms of leaders vs followers, upper hand vs lower hand, rich vs poor, history tells. Among a pool of available choices, and assume that oneself can only make one choice(mutually exclusive), always exercise your judgement, study carefully, and make the "right" choice. No regret after the decision made, be self responsible. Don't "anyhow" make decision especially when being push to a corner.

When policy maker (driver) make a "mistake" (interests groups exist, to each "their" own, basically)which affect the "mass" (eg all passengers in a vehicle), as a responsible co-driver(citizen), has the responsibility to wake the driver up, before all passengers fell off.....

[yoongf 11]

My position to all matters regarding sg society..

No govt is the best form of govt, ie.. dun be a nanny state.

Markets are naturally efficient. Supply will meet demand naturally.

There will be ppl who say good, there will be ppl who say bad.

Opinions are appreciated.. but is it really unbecoming to rely on the govt to solve self-perceived problems.

Sg ppl really got to take ownership of issues rather expect others to solve it for them, if it was ever an issue in the first place.

I am pretty sure if the govt does nothing, we will surely be too busy solving own problems rather than sitting ard asking for others to solve them.

[bepgof 20]

IC, so no taxes, self-governance..back to the stone age = Stong ones survive, lol.

We are in 3rd revolution or 3rd wave, 4th is forming and coming, impacts all mankind, the way they live....Remember the father of industralisation, Hendry Ford, the Taylorism who created the SUPPLY first, then increase wage from $2 to $5 to employees to stimulate the DEMAND..haizzz...long story....anyway the rise of data comm has impacted us a lot, now the bio, just wait & see.

Gov's interv is deemed fit when things get "out of control". It is good to have an effective yet efficient behind-scene nanny who act "at the right time", otherwise: stong vs weak, who dies?

[yoongf 11]

The issue is whether this nanny is in touch with society.

I am not impressed.

[HomeSWEETHome01 0]

My position to all matters regarding sg society..

No govt is the best form of govt, ie.. dun be a nanny state.

Markets are naturally efficient. Supply will meet demand naturally.

Wow i'm quite intrigued by this statement. Yes market is naturally efficient but it does fail too.

Probably what you say might be correct if the Singapore property were influenced by just locals in a micro scale.

However due to the complexity of Singapore's small and highly open economy, foreign inputs, speculations may make the situation much more complicated than what you feel.

This is why the government, a deciding factor should contribute for a more stable economy.

[bepgof 20]

Wow i'm quite intrigued by this statement. Yes market is naturally efficient but it does fail too.

Probably what you say might be correct if the Singapore property were influenced by just locals in a micro scale.

However due to the complexity of Singapore's small and highly open economy, foreign inputs, speculations may make the situation much more complicated than what you feel.

This is why the government, a deciding factor should contribute for a more stable economy.

More than 10 yrs ago, when I genuinely stepped into and looked up for pte pty, noticed those "small" units get snapped up supper fast than those bigger ones. These days, the trend holds, what does this tell? 80% s'porean buy mm/SB.

When one can't get fish, will turn to prawn, substitution?