Prices of completed shoebox apartments peaked in August and dropped three percent in November, according to the flash estimates from NUS’ Institute of Real Estate Studies.
Month-on-month, prices of these units dropped 0.2 percent in November.
The flash estimates also showed that prices of larger apartments in both Central and Non-Central regions continued to rise in the previous month.
Since 2010, the price hike for shoebox apartments in Singapore has been slower compared to larger apartments in the Non-Central region (NCR) but faster than for larger apartments in the Central Region.
Meanwhile, flash estimates for the Singapore Residential Price Index (SRPI) revealed that the sub-index for shoebox apartments in the country dropped 0.2 percent month-on-month in November. The index has declined three percent since peaking in August.
The SRPI for the NCR (excluding shoebox apartments) climbed 1.8 percent month-on-month, while the sub-index for the Central region rose 1.5 percent in November.
In addition, the Overall SRPI rose 1.7 percent month-on-month in November, up from the one percent month-on-month growth in October.
“As more of these units are completed, those who can’t hold may be under pressure to sell. So far, rents of small apartments have held well, but competition for tenants may intensify when more such stock is completed,” said Ong Choon Fah, Chief Operating Officer of DTZ Southeast Asia.
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