A recent Night Frank study said that the attempt to rein in the excessive development in shoebox residential units gave mixed results for Shoebox sales outside the CCR.
Shoebox private resident units rose significantly in comparison with and condominium development outside the CCR. This is occurred after the promulgation of the 2012 guidelines released by the Urban Redevelopment Authority in The Vales.
Restriction of Shoebox Units | The Vales EC
The increase in ratio for The Vales is based on data pre-November 2012, when the new guidelines were released and after the release. The timeframe that was measured was 1 1/2 years on either side of that date.
105 projects that were studied showed the proportion of shoebox residences in certain projects increased from 10.5% prior to November 2012 to 12.1% after the November 4 guideline release.
The focus was on units with less than 47 m², which showed an increased in the Northeast, East, and central regions. The study excludes the CCR and the southern islands. But, fell in the West and the North regions in the 1 1/2 years after November 2012.
The Vales EC Sengkang Anchorvale Crescent
The URA was aiming for a different outcome as these statistics are now showing contrary to their formula for the maximum number of dwelling units for new condominium developments such as The Vales as well as new flats outside the central region.
Alice Tan Head of research at Knight Frank, supported this by saying, “”The property cooling measures and the tightened financing requirements, property developers are still likely to include more small size home within their projects in order to appeal to a wider group of investors, home seekers or singles and small families on the lookout for units with portable lump-sum prices for The Vales.””
This is critical for developers, in this competitive sale market, to reach out to a wider base of investors with varying these and wants to achieve better sales results, she added.