Nothing

[Jj5599]

By Romesh Navaratnarajah:

 

Oxley Holdings Chief Ching Chiat Kwong has defended shoebox apartments, following a comment by CapitaLand

[Tom_kkh]

i personally think that no one force any person to buy, don like don buy, kpkb for wht?

[Watwheels]

LOL...developers taking pot shots at each other.

[Damienic]

Oxley holdings obviously have a vested interest in this. Although we can say that its a willing buy and willling seller situation, if all the developers start to advocating building only shoebox units in future, then we don't really have a choice right?

[Jj5599]

No roof over their heads are more inhuman.

 

 

[Hotamp]

ask the CEOs to sell off theirs bungalows and stay in shoe box units then see loh....something like " undercover bosses" like that haha

[Maroon5]

i personally think that no one force any person to buy, don like don buy, kpkb for wht?

 

+1 agree.

[Vega]

One or two persons still ok. Anymore will be very cramp.

[Nonewid]

Agree.

No roof over their heads are more inhuman.

 

[Jj5599]

[Soya]

shoebox units are obviously for singles.

 

some of these big developers are missing the point by saying these units are unsuitable for families.

[Sp4wn]

One or two persons still ok. Anymore will be very cramp.

 

difficult. since I'm in this line, let me explain few things that people tend to miss out:

 

500 sqft is the gross area (and not the carpet area). Now, developers charge for everything.

 

For one of oxley's recent projects, 'loft @ stevens', they sold a 33sqm (355sqft) "apartment" for $2029psf (total @ $721k).

 

Looking at the floor plan, the unit is a bed room apt with 1 toilet, and a combined kitchen / living room.

 

Now, the unit consists of a balcony and an even larger AC/planter ledge. You are paying for both of these at the full price of the carpet area. Both of these make up approximately 15-20% of the built in area that you are paying for.

 

First off, for a single bedder, you *do not* need such a large a/c ledge. The developer knows this but any area they dont have to build up (come on, how costly can it be to create a small ledge?) but can still charge you for, is gravy to them.

 

Its also unlikely 2 people can really live in this apartment. If we take the built in area, its about 280 sqft (so you've actually paid nearly $2600psf for the built in area, before stamp duty and legal fees). Dont even have enough wardrobe space for a couple to use ..

 

The resale value of these units can also be called into question. It's a lot harder to find people to appreciate (or even flip) shoebox units. The ones buying are the speculators who are either hoping to flip them, or rent them out to expats/singles.

 

My last point is simple - if the market collapses (by say 30%) or weakens, and you took an 80% ltv on this apartment, the bank will most definitely ask you to top up the balance. (and you'd already be underwater on your loan, but that really depends on location. also, bigger apartments will be affected too). For clarity's sake - I'm not saying not to buy .. but make sure you know what you are paying for! (also, no disrespect to anyone .. just giving my 2 cents worth. its free advice .. you can take it, or throw it away .. its up to you!)

Edited June 8, 2012 by Sp4wn

[Jj5599]

Of cos a buyer pays for voids, ac ledge, bay window and balcony. The one at Stevens, they paying for prestige, maybe they have kids going to a good school near there. If they don't mind staying there and also can rent out, then can buy.

[Damienic]

 

[Jj5599]

haha obviously he is taking a pot shot at the sky habitat's exorbitant price tag. anyway is capitalland the developer for sky habitat?

 

Capitaland & Mitsubishi Estate Asia Pte. Ltd.

[Scb11980]

what about those one room hdb rental flat

 

how about those studio service apartment

 

how about old age home with only one bed

 

 

[Limxiaoming]

 

[Jj5599]

what about those one room hdb rental flat

 

how about those studio service apartment

 

how about old age home with only one bed

 

also inhuman i think