Analysts expect shoebox rents to drop 5%-10%

Muneerah December 29, 2015

Property analysts expect rentals of shoebox apartments to fall by five to ten percent in the coming years, on the back of an expected increase in supply, reported the media.

Notably, around 6,200 shoebox units are slated to be completed over the next two years. This is a record number compared to the yearly average of 3,000 units during the last decade, said property consultant SLP International.

SLP noted shoebox units located near MRT stations or within the city centre would enjoy better rentals compared to others.

“Those shoebox developments that are located away from the city or MRT stations, I think they will not be doing very well in terms of their rental demand,” said Nicholas Mak, Executive Director of research & consultancy at SLP International.

“And furthermore, if they are located within the suburban areas where typically family units are in more demand, such developments may actually languish in the rental market,” he added.

Shoebox units are generally small apartments with a space of less than 50 sq m.


Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email


You may also like these articles

Shoebox units surfacing in auctions

Nine shoebox units were put up for mortgagee sale in 2014, according to a report by Colliers International. These small units at various locations such as Geylang, Woodlands, and Haig Road are gene

Continue ReadingDecember 18, 2014

Suburban properties becoming more attractive

The Outside Central Region (OCR) is considered the suburbs of Singapore and comprises the East planning region, North East planning region, North planning region and West planning region. This include

Continue ReadingDecember 23, 2014

URA may reveal nett prices of units sold

The Urban Redevelopment Authority (URA) is working towards releasing the nett prices of individual units sold by developers on its website in H1 2015, as the government continues to make improvements

Continue ReadingDecember 24, 2014