{"id":2815,"date":"2015-10-27T07:21:57","date_gmt":"2015-10-26T23:21:57","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=2815"},"modified":"2022-07-01T03:35:37","modified_gmt":"2022-06-30T19:35:37","slug":"shoebox-apartments-worth-the-investment","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/","title":{"rendered":"Shoebox apartments: Worth the investment?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><h3><i><span style=\"font-weight: 400;\">Also known as Mickey Mouse units, private apartments of up to 506 square feet surged in popularity in 2013. These typically cost more per square foot, but are hot among singles and young couples who appreciate the compact space. In this 99.co special feature, we explore this segment for Singapore buyers and investors.<\/span><\/i><\/h3>\n<p><span style=\"font-weight: 400;\">Shoebox units \u2013 which are <\/span><a href=\"http:\/\/www.businessinsider.sg\/tiny-chinese-shoebox-apartments-are-claustrophobic-2015-2\/?op=1#.Vhygnvmqqko\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">as small as 24 square feet<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 originated in Hong Kong, due to space constraints and high rents in one of the world\u2019s most vertical cities. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">These compact units have found a new market in Singapore of late with young couples opting for shoebox units with full condominium facilities. With smart design and furniture purchases \u2013 for instance, a sofa that doubles up as a bed &#8211; \u00a0the small size of shoebox apartments does little to dampen its appeal. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">About 6,200 shoebox units are set to get their Temporary Occupation Permit by next year, <\/span><a href=\"http:\/\/business.asiaone.com\/news\/gloomy-outlook-shoebox-units-their-numbers-rise\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">The Straits Times<\/span><\/a><span style=\"font-weight: 400;\"> reported recently<\/span><span style=\"font-weight: 400;\">. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Usually located in Singapore\u2019s central district, occupants pay more per square foot as compared to a larger apartment, but a smaller total sum for a central private space.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, in tandem with the recent fall in property prices, prices of shoebox units have also fallen. In fact, this segment saw sharp price decline in the private housing prices, dropping 1.1 per cent month-on-month in June after a 1.5 per cent decline in May, a recent <\/span><a href=\"http:\/\/www.straitstimes.com\/business\/property\/shoebox-units-lead-03-decline-in-prices-of-completed-apartments-and-condos-in-june\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Straits Times report<\/span><\/a><span style=\"font-weight: 400;\"> said. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overall, prices of small units have fallen about 10 per cent from their last peak in August 2013, according to <\/span><a href=\"http:\/\/www.straitstimes.com\/business\/property\/bumper-crop-of-shoebox-units-to-come-in-2017\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">flash estimates from the NUS Singapore Residential Price Index<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<h3><b>For buyers:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Jumping into the purchase may be tempting, as the price decline of shoebox units may put them within the budget of those looking at mid-size Housing &amp; Development Board flats. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">They are less spacious, but owners get to enjoy luxe facilities such as spa pools, jacuzzis and well-equipped gyms after paying condominium maintenance fees. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Less space also means less time spent cleaning, and smart space-saving tips (<\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/14-practical-storage-solutions-for-your-bags\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">such as those for bags<\/span><\/a><span style=\"font-weight: 400;\"> in a previous 99.co post) could go a long way. <\/span><\/p>\n<figure id=\"attachment_16844\" aria-describedby=\"caption-attachment-16844\" style=\"width: 746px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-16844 size-full\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2015\/10\/shoebox-apartment-alexis.png\" alt=\"shoebox apartment alexis\" width=\"746\" height=\"916\" \/><figcaption id=\"caption-attachment-16844\" class=\"wp-caption-text\">Credit: Alexis<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Still, prospective buyers should deliberate if space will be an issue in the near future \u2013 as these apartments are too small for pets and children. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This means resale prices of private non-landed homes are expected to drop by about 4.5 per cent to 7 per cent this year, he added \u2013 something prospective buyers of shoebox apartments should keep in mind before going \u201call in\u201d. <\/span><\/p>\n<h3><b>For investors:<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As the supply increases, investors will have to distinguish their rentals from others in the market. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shoebox investors with property in the central region and city fringes will have an easier time, as suburban shoebox homes have \u201cuntested leasing demand,\u201d said <\/span><a href=\"http:\/\/business.asiaone.com\/news\/gloomy-outlook-shoebox-units-their-numbers-rise\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Mr Ong Kah Seng, R\u2019ST Research director<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201c<\/span><span style=\"font-weight: 400;\">In the suburban areas, these homes will face competition from HDB flats, which offer more space for almost the same rent&#8230; Expatriates also do not seem to have moved to the suburban areas from the central region and city fringes,\u201d he added.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, overseas nationals who can\u2019t afford to rent a shoebox unit are increasingly taking the option of renting a single room in an apartment, putting shoebox rents under pressure, <\/span><a href=\"http:\/\/www.straitstimes.com\/business\/property\/bumper-crop-of-shoebox-units-to-come-in-2017\"><span style=\"font-weight: 400;\">Savills Singapore research head Alan Cheong told The Straits Times in August<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n<figure id=\"attachment_16845\" aria-describedby=\"caption-attachment-16845\" style=\"width: 950px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-16845 size-full\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2015\/10\/journey-east-shoebox.png\" alt=\"journey east shoebox\" width=\"950\" height=\"636\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2015\/10\/journey-east-shoebox.png 950w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2015\/10\/journey-east-shoebox-940x629.png 940w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2015\/10\/journey-east-shoebox-440x294.png 440w\" sizes=\"(max-width: 950px) 100vw, 950px\" \/><figcaption id=\"caption-attachment-16845\" class=\"wp-caption-text\">Credit: Journey East Loft Collection<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The time may have come for investors looking to make the quick dollar. Shoebox unit prices <\/span><a href=\"http:\/\/www.straitstimes.com\/business\/property\/singapore-resale-prices-of-condos-and-apartments-drop-06-in-august\"><span style=\"font-weight: 400;\">remained unchanged in August<\/span><\/a><span style=\"font-weight: 400;\">, after rising 0.5 per cent month-on-month in July \u2013 bucking against months of being on a downward trend. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors who are holding on to shoebox investments or looking to jump into the market can snag buyers by making their rentals attractive through competitive pricing, decoration or banking in on the property\u2019s location.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A well-furnished, shoebox apartment is surely a good option for young couples. <\/span><\/p>\n<p>If you enjoyed this article, you might be interested in\u00a0<a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.99.co\/singapore\/insider\/tiny-house-movement-shoebox-counterpart\/\" target=\"_blank\" rel=\"noopener\">The tiny house movement has a shoebox counterpart in Singapore<\/a> and<a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.99.co\/singapore\/insider\/shoebox-unit-for-own-stay\/\" target=\"_blank\" rel=\"noopener\">4 things to consider before buying a shoebox unit for your own stay<\/a>.<\/p>\n<p><i>Find the home of your dreams today at Singapore\u2019s largest <a href=\"https:\/\/www.99.co\/?utm_source=blog%20main%20site%20conversion\">property portal, 99.co<\/a>!<\/i><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Also known as Mickey Mouse units, private apartments of up to 506 square feet surged in popularity in 2013. These typically cost more per square foot, but are hot among singles and young couples who appreciate the compact space. In this 99.co special feature, we explore this segment for Singapore buyers and investors. Shoebox units&hellip;<\/p>\n","protected":false},"author":17,"featured_media":54007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53593,53589,57131],"tags":[53806,53658,53807,53808],"persona":[],"class_list":{"2":"type-post","14":"entry","15":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Shoebox apartments: Worth the investment?<\/title>\n<meta name=\"description\" content=\"The shoebox unit, quintessentially known as the Mickey Mouse units is a private apartments of up to 506 square feet, and it has surged in popularity in 2013.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shoebox apartments: Worth the investment?\" \/>\n<meta property=\"og:description\" content=\"The shoebox unit, quintessentially known as the Mickey Mouse units is a private apartments of up to 506 square feet, and it has surged in popularity in 2013.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/99dotco\/\" \/>\n<meta property=\"article:published_time\" content=\"2015-10-26T23:21:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-30T19:35:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/07\/Screen-Shot-2015-10-27-at-15.08.28-e1445929821468.png\" \/>\n\t<meta property=\"og:image:width\" content=\"950\" \/>\n\t<meta property=\"og:image:height\" content=\"542\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"99.co\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@99dotco\" \/>\n<meta name=\"twitter:site\" content=\"@99dotco\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"99.co\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/\"},\"author\":{\"name\":\"99.co\",\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#\/schema\/person\/0058658f1a1cdadf5f7d957b386c348b\"},\"headline\":\"Shoebox apartments: Worth the investment?\",\"datePublished\":\"2015-10-26T23:21:57+00:00\",\"dateModified\":\"2022-06-30T19:35:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/\"},\"wordCount\":694,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.99.co\/singapore\/insider\/shoebox-apartments-worth-the-investment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2022\/07\/Screen-Shot-2015-10-27-at-15.08.28-e1445929821468.png\",\"keywords\":[\"apartment\",\"rental\",\"shoebox\",\"units\"],\"articleSection\":[\"Financial News\",\"Home &amp; 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