By Mr. Propwise
In response to a previous article, Geylang Shoebox Condos – A Comparison, we received the following reader response which I’d like to share with you:
Dear Mr. Propwise,
Thank you for this useful research.
However, I think there has been some misconception about these so-called shoebox condos.
These shoebox condos are nothing new. But many property reports and research analyses have missed some important points, and they don’t do justice to these smallish condo units. Maybe some better terms should be used so as not to belittle these very useful dwellings.
I have been to some countries, long before these “shoebox” units came into being in Singapore – for example, in Switzerland, Japan and Hongkong, to name a few. They are called “studios”. Many are even smaller than our “shoeboxes”.
I have seen some of our shoeboxes. Perhaps some of our property experts should go look at Guillemard Edge. At 441 sq ft, a unit has a decent bedroom, toilet, full balconies, and even a study area, big enough to accommodate a single bed. The condo has two lap pools, a rest area, a small gym and it stretches between two Lorongs – 28 and 30.
To me, these smallish units are very liveable, compared to the much more expensive Hongkong shoebox units, which I have visited.
Young executives desiring to own a freehold condo unit that they can afford would find these suitable for their budget. Sure, it might make more sense to buy a 3-room HDB flat in mature estates like Toa Payoh, which could cost 50% less. But not many would qualify, unless they are married!
So, such shoeboxes in Geylang offer an alternative choice – relative affordability, good location (close to MRTs, shops and eateries, near to CBD and other amenities), a freehold title, and relatively good rentability (easier to rent out and higher rental returns).
And for singles who wish to be on their own and work in the CBD, these offer a good alternative to renting a room, whether in a condo or in HDB flats (e.g. a 3-room HDB flat in Toa Payoh costs about $ 1,700 per month). What would the mortgage be for 30 years for a unit in most of these shoebox developments in Geylang? And not forgetting that these are freehold. After 30 years of paying they will be fully owned, but NOT for rental flats!
In short, these condo units have been overly discredited and wrongly analysed. Many writers have not done justice to these smallish (not small) condos by their often negative comments.
Regards, TI
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I declare I own a Pinoy shoebox in Manila. It is a smallish 32 sq. M but comfortable enough for a couple. Before I rent out, my wife and I stayed a few weeks after taking over the flat.
In Spore, many so-called analysts have vested interest one way or another. So they sing the same tune even against their own conscience. There are very few independent and non-vested Analysts here. So you see or hear parrots galore.
Thanks for your comment Fred! Has it turned out to be a profitable investment?
Shoeboxes are very good for rental. And they are not so inhuman as what many people say. They are suitable for singles, retirees who are single again, the key is to get a good location condo. I don’t consider geylang to be a good location. Many people have the bad misconception that location is about proximity to food and MRT. Lor 28&30 geylang is not a good location because it is a dodgy neighbourhood. For good location shoebox we are talking about east coast, bukit timah, d9,10 like Robertson areas , for eg. So let the naysayers say whatever they like, while I’m enjoying my 4% yield on my shoebox.
Why compare with Hong Kong which has most unaffordable property in the world and where housing is in crisis? Youth are despondent about spending their whole lives to pay for a tiny place and majority want to migrate based on latest surveys.
I have lived in more than 20 cities around the world. Many are far better in terms of housing. It is a misconception that smaller means cheaper. The absolute quantum that Singaporeans can pay is relatively fixed. If mandated to build bigger, developers will bid less for land and charge the same quantum for larger apartments. It is better for Singaporeans.