2012 jun 11
http://business.asiaone.com/Business/My+Money/Property/Story/A1Story20120611-351967.html
CapitaLand has shoebox homes at Bedok Residences
By Felda Chay
CapitaLand Group, whose CEO recently called shoebox homes "almost inhuman", has residential projects with units that fall within this category.
At Bedok Residences, 37 of the development's 583 apartments are below 50 sq m (538 sq ft). The smallest unit is 48 sq m, or about 517 sq ft. Another 11 units border along the size of a shoebox apartment at 50 sq m.
Over at d'Leedon at Farrer Road, 226 of its 1,715 units are between 50 and 60 sq m, slightly bigger than what is usually considered a shoebox home.
The Urban Redevelopment Authority (URA) defines a small apartment as being below 50 sq m. There are, however, slight variations to benchmarks used on what constitutes a small home here. For instance, the NUS Singapore Residential Price Index (SRPI) classifies small apartments as those up to 506 sq ft (47 sq m). Most in the property industry agree, however, that shoebox apartments are units of about 500 sq ft each.
When asked about the small apartments that CapitaLand is building in relation to his recent comments, Liew Mun Leong, who is also the listed group's president, said: "CapitaLand does not build residential units for sale that are less than 500 sq ft each. At Bedok Residences, 37 units are 48-49 sq m each. If we convert to sq ft, they are about 517-527 sq ft each.
"This is in line with what I said recently about shoebox apartments in an interview with Bloomberg. I had said that 'it's almost inhuman, it's not good for the welfare of the family to feel that constrained'."
Noting that his use of the word "inhuman" to describe shoebox apartments has raised a storm among members of the public and some developers, Mr Liew added: "Since the word 'inhuman' has caused so much controversy, I should have said it's 'too restrictive' instead.
"While there are some singles or couples who may not mind staying in small apartments, CapitaLand as a developer is of the view that shoebox units may not be conducive nor healthy for bringing up families with children. For this reason, our small units of about 500 sq ft each are typically one-bedroom units."
Since Mr Liew's comments were published about two weeks ago, developers such as Oxley Holdings boss Ching Chiat Kwong and Wing Tai chairman Cheng Wai Keung have weighed in on the case for and against shoebox apartments.
Mr Ching, whose Oxley Holdings is a major developer of shoebox homes, said that these developments allow the younger generation - some of whom may wish to move out of their parents' homes and live on their own - to buy a pad which "provides adequate personal space".
Wing Tai's Mr Cheng cautioned buyers, saying that shoebox apartments are "a new product; it's not been widely tested".
Last month, National Development Minister Khaw Boon Wan issued a warning on such apartments, some of which are being built in suburban areas.
The shoebox market in the heartland is "untested", Mr Khaw said in Parliament, echoing earlier warnings from property consultants that it remains to be seen if tenants will bite.
The minister also said the government is "monitoring the trend of shoebox units in Singapore" and may consider "additional regulations", if necessary.
This article was first published in The Business Times.
http://business.asiaone.com/Business/My+Money/Property/Story/A1Story20120611-351967.html
CapitaLand has shoebox homes at Bedok Residences
By Felda Chay
CapitaLand Group, whose CEO recently called shoebox homes "almost inhuman", has residential projects with units that fall within this category.
At Bedok Residences, 37 of the development's 583 apartments are below 50 sq m (538 sq ft). The smallest unit is 48 sq m, or about 517 sq ft. Another 11 units border along the size of a shoebox apartment at 50 sq m.
Over at d'Leedon at Farrer Road, 226 of its 1,715 units are between 50 and 60 sq m, slightly bigger than what is usually considered a shoebox home.
The Urban Redevelopment Authority (URA) defines a small apartment as being below 50 sq m. There are, however, slight variations to benchmarks used on what constitutes a small home here. For instance, the NUS Singapore Residential Price Index (SRPI) classifies small apartments as those up to 506 sq ft (47 sq m). Most in the property industry agree, however, that shoebox apartments are units of about 500 sq ft each.
When asked about the small apartments that CapitaLand is building in relation to his recent comments, Liew Mun Leong, who is also the listed group's president, said: "CapitaLand does not build residential units for sale that are less than 500 sq ft each. At Bedok Residences, 37 units are 48-49 sq m each. If we convert to sq ft, they are about 517-527 sq ft each.
"This is in line with what I said recently about shoebox apartments in an interview with Bloomberg. I had said that 'it's almost inhuman, it's not good for the welfare of the family to feel that constrained'."
Noting that his use of the word "inhuman" to describe shoebox apartments has raised a storm among members of the public and some developers, Mr Liew added: "Since the word 'inhuman' has caused so much controversy, I should have said it's 'too restrictive' instead.
"While there are some singles or couples who may not mind staying in small apartments, CapitaLand as a developer is of the view that shoebox units may not be conducive nor healthy for bringing up families with children. For this reason, our small units of about 500 sq ft each are typically one-bedroom units."
Since Mr Liew's comments were published about two weeks ago, developers such as Oxley Holdings boss Ching Chiat Kwong and Wing Tai chairman Cheng Wai Keung have weighed in on the case for and against shoebox apartments.
Mr Ching, whose Oxley Holdings is a major developer of shoebox homes, said that these developments allow the younger generation - some of whom may wish to move out of their parents' homes and live on their own - to buy a pad which "provides adequate personal space".
Wing Tai's Mr Cheng cautioned buyers, saying that shoebox apartments are "a new product; it's not been widely tested".
Last month, National Development Minister Khaw Boon Wan issued a warning on such apartments, some of which are being built in suburban areas.
The shoebox market in the heartland is "untested", Mr Khaw said in Parliament, echoing earlier warnings from property consultants that it remains to be seen if tenants will bite.
The minister also said the government is "monitoring the trend of shoebox units in Singapore" and may consider "additional regulations", if necessary.
This article was first published in The Business Times.
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