Following new rules by the Urban Redevelopment Authority (URA) capping the number of small units allowed in non-landed private developments outside the Central Area, existing shoebox units will likely benefit from the limited supply ahead, according to OCBC.
“We believe that demand for shoebox units remain buoyant, given still ample liquidity, and existing shoebox projects could well benefit from a lower supply of small units ahead,” said OCBC in a Singapore Business Review report.
For instance, Roxy Pacific’s projects such as Nottinghill and Natura@Hillview (pictured) could see a boost in sales of small units, even though both projects are nearly 90 percent sold.
The developer is also not surprised by the new measures, noted OCBC.
“Of their recent five acquisitions, two projects – Sophia Mansion and Wilkie Terrace – are located in the central area and are not subject to the new measures. The remaining three sites were already subjected to the previous 70 sq m rule and would not be incrementally affected.”
In addition, Roxy Pacific has received provisional permission (PP) for its larger sites, Westvale and Jade. Over 40 percent of the projects’ units will be less than 50 sq m and the same layout will be applied to Harbourview.
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