If we are going to buy a shoebox apartment (506 sq ft in size or smaller) as an investment property, make sure to buy in CCR or RCR (central region). Don’t buy one in OCR. If we believe Square Foot Research, this is something we must remember.
As developers tried to move their stock more quickly, they introduced shoebox apartments in OCR in the last couple of years. As investment properties, National Development Minister Khaw Boon Wan cautioned not too long ago that this was an untested market.
According to Square Foot Research, out of 50 projects with shoebox apartments completed since 2012, 38 are located in the central region and these saw a higher rental take-up rate compared to those in OCR. They also rented for as much as $3,400 a month or about $6.72 psf (based on a unit of 506 sq ft in size).
There is also an interesting …