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Home buyers prefer ‘mickey mouse' flats

http://www.propertyguru.com.sg/property-management-news/2009/10/26575/home-buyers-prefer-mickey-mouse-flats

The project Suites@Guillemard recently put up a sale of apartments of different sizes, which included units covering 258 square feet and an area equivalent to 21/2 car park lots. Offered units were priced at $1,450 per square foot or $374,000.

These are the smallest private apartments in Singapore, which shelled out a 312 square feet unit at Kent Residences.

It seems that home buyers are seeking for more so-called 'shoebox' or 'mickey mouse' flats in the market. Such flats cover an area of below 500 square feet. The trend set forth in the latter part of the previous year.

To date, almost 500 'mickey mouse' flats have been sold, a growth from last year’s 299 units and 2007’s 275 units sold.

The Lenox project down Changi Road was one of the recent launches with an area covering below 500 square feet. Future launches include City Loft located at Race Course Road, where penthouses range from 743 to 904 square feet and each of the 40 units has approximately 323 to 420 square feet in size.

Affordability is helping to drive sales, especially amid uncertain economic conditions.

Nevertheless, based on the flash estimate made by the Urban Redevelopment Authority (URA), there was an increase of 15.9 percent in private residential prices from 133.3 points in Q2 to 154.5 points in Q3.

In the midst of growing prices, the cost of a one-bedder unit at 350 square feet, which are priced between $370,000 and $400,000, remains to attract the interest of home buyers.

However, various concerns arise in several industry quarters.

“The small units are more like the size of a hotel room and might be deemed by occupiers as non-conducive as a general apartment kind of living,” stated Donald Han, managing director at Cushman & Wakefield.

This could signify that home buyers, most of which are investors, may list them on the rental market.

“If demand is not there for long- term leasing, owners may lease them out on a monthly, weekly or even hourly basis.”

According to the URA, it does not specify a minimum size for units in private residences. This is to allow flexibility among developers to offer units of various sizes in order to cater the varying demands and consider the income groups.

“URA will assess the overall building design, site layout and whether the proposed residential units are able to function effectively as self-contained dwelling units, with basic amenities like living area, bedroom, kitchen and bathroom,” its spokesman said.

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