With initial signs that the shoebox craze may be subsiding, demand for larger non-landed homes appears to be on the upswing with upgraders leading the way.
Data from property consultancy CBRE shows that the median size of all new non-landed homes sold in Q2 2012 rose to 79 sq m, up from 65 sq m in the previous quarter.
At the same time, the market share of shoebox units measuring 50 sq m or less fell to 23 percent from a high of 28 percent. However, this figure is still more than last yearâ€™s 20 percent.
Experts noted that cooling measures such as the sellerâ€™s stamp duty (SSD) and additional buyerâ€™s stamp duty (ABSD) could have contributed to the decline in investor demand for shoebox units. Such properties have been very popular due to their affordability, with most units priced below S$1 million.
Despite the renewed interest for bigger units at some executive condominiums (ECs) and private suburban projects, Joseph Tan, Executive Director (Residential) at CBRE, explained that â€śinterest in small units will always be there, especially if the current trend of reducing average family size persists and homeowners continue to look for affordable smaller apartmentsâ€ť.
â€śIt also depends on developersâ€™ supply and pricing strategy; if prices are kept at an affordable quantum, investors will continue to view this as an attractive form of investment in view of the prevailing financial crisis,â€ť he added.
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