UPDATE: CIMB has clarified that they are still offering financing for shoebox units.

By Calvin Yeo

According to PropertyGuru, at least one bank in Singapore is declining all loan applications for properties under 500 square feet in size, which are termed shoebox units in Singapore. The property market sentiment is generally poor now and banks are keeping a tight rein on financing. This also comes on the back of poor stock market sentiment which is in part caused by the Greece crisis and slowdown of the China and US economy.

Apparently, an unnamed employee of CIMB said that they are no longer offering financing for shoe box units, even for high credit rating clients. The reasons given are extremely high prices per square foot as compared to more reasonably sized units. Another reason given is that the buyers of these units tend to be investors rather than owner occupiers, which ...