{"id":101292,"date":"2018-11-15T12:32:01","date_gmt":"2018-11-15T05:32:01","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/majority-of-shoebox-apartment-investors-profited-knight-frank\/"},"modified":"2018-11-15T13:02:51","modified_gmt":"2018-11-15T06:02:51","slug":"majority-of-shoebox-apartment-investors-profited-knight-frank","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/majority-of-shoebox-apartment-investors-profited-knight-frank\/","title":{"rendered":"Majority of shoebox apartment investors profited: Knight Frank"},"content":{"rendered":"


\nOwners of shoebox apartments can expect to enjoy healthy capital gains.\u00a0
\nAbout 88.4 percent of resale transactions involving shoebox apartments, units smaller than 50 sq m (approx. 538.2 sq ft), made a profit, according to an analysis of caveats by Knight Frank.
\n\u201cA majority of investors who have put their faith in shoebox units have not been disappointed,\u201d said the property consultancy.
\nMore:\u00a0URA To Adjust Guidelines If Developers Build Too Many Shoebox Units
\nIt found that those who have divested their shoebox apartments pocketed an average capital gain of 11.5 percent, or an annualised return of 2.4 percent.
\nThis is slightly higher than the 10.6 percent average for resale deals involving units of all sizes, which works out to an annualised return of 2.0 percent for new developments launched since 2010.
\nHowever, the average transaction price of shoebox apartments in new projects only slightly increased from $727,846 in 2010 to $771,677 so far this year, while median psf pricing marginally increased from $1,473 psf to $1,495 psf over the same period.
\nNonetheless, owners of shoebox apartments are currently enjoying gross rental yield of around 3.5 percent, with units in Singapore\u2019s northern region posting the highest rate of 4.0 percent.
\nKnight Frank also noted that demand for shoebox apartments remains strong. In new non-landed developments outside the central area, sales of such units as a proportion of overall sales peaked from 16 percent in 2012 to 22 percent in 2016. As of end-October 2018, the rate remains high at 19 percent.
\nThe study follows the Urban Redevelopment Authority\u2019s (URA) announced on 17 October 2018 that the average unit size at new non-landed residential projects outside Singapore\u2019s central region will be increased from 70 sq m to either 85 sq m (approx. 915 sq ft) or 100 sq m (approx. 1,076 sq ft). The higher average size will take effect for development applications submitted from 17 January 2019.
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Majority of shoebox apartment investors profited: Knight Frank<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Owners of shoebox apartments can expect to enjoy healthy capital gains.\u00a0 About 88.4 percent of...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-101292","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-qlK","jetpack-related-posts":[{"id":87014,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-to-adjust-guidelines-if-developers-build-too-many-shoebox-units\/","url_meta":{"origin":101292,"position":0},"title":"URA to adjust guidelines if developers build too many shoebox units","date":"May 3, 2018","format":false,"excerpt":"\r Developers are allowed to build condo units of different sizes, assuming an average size of 753 sq ft. The Urban Redevelopment Authority (URA) said on Wednesday (3 May) that it will intervene, if needed, to prevent property developers from building too many tiny apartments or shoebox units amidst the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":100442,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developers-may-need-to-rethink-pricing-amidst-new-shoebox-rule\/","url_meta":{"origin":101292,"position":1},"title":"Developers may need to rethink pricing amidst new shoebox rule","date":"October 24, 2018","format":false,"excerpt":"\r New URA rules have slashed the maximum number of units that can be built outside the central areas. The Singapore government\u2019s new policy on apartment sizes may come as good news to home buyers, but not to home builders who may now need a pricing rethink which could dent\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":102484,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kongs-infatuation-with-multimillion-dollar-shoebox-homes-is-over-as-quickly-as-it-began\/","url_meta":{"origin":101292,"position":2},"title":"Hong Kong\u2019s infatuation with multimillion-dollar shoebox homes is over as quickly as it began","date":"December 22, 2018","format":false,"excerpt":"\r Hong Kong\u2019s infatuation with micro-apartments, some of which hold the world record as the smallest living space constructed for humans, has ended almost as quickly as it began. 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