Shoebox apartments, (506 sq ft or lower) have taken a hit. The Covid 19 pandemic, recession and wage cuts have all taken their toll on sales. Volume transactions for shoebox units were 710 units (primary market); and 272 units (resale), in the period January to August 2020 - down 25.6% and 11.1% respectively, year-on-year. The economic recession has also hit rental demand for such units.
In August this year, the average unit price stood at S$1,960 per square foot (psf). It was S$1,919 psf in July 2020 and S$1,779 psf in August 2019. For the first eight months of 2020, the average transacted price of small units was S$2,003 psf - 10.6 per cent higher than the S$1,810 psf over the same period in 2019.
Buyers’ affordability, budget limitations, and financing have kept this category though somewhat buoyant. Average transacted price of small units was S$2,003 psf for 2020 (first 8 months) up from S$1,810 psf over the same period in 2019.