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There are fewer shoebox condominiums in Singapore today due to a combination of regulatory measures, market trends, and changing buyer preferences. The Urban Redevelopment Authority (URA) has introduced guidelines to manage the proliferation of small units, ensuring balanced housing options and sustainable urban development. These rules discourage developers from overbuilding shoebox apartments, leading to a decrease in their availability.
Rising land prices in Singapore make it less economically viable for developers to build small, lower-priced units. The demand for larger units has increased, especially among families and multigenerational households - with the pressure of remote work, too. Also, A high concentration of shoebox units can strain infrastructure, such as transportation and utilities, in certain neighbourhoods.
Prices of private apartments and condominiums have come under pressure with the Government's move to reverse the trend of condo developers building more and more shoebox units, say market experts.
What is a Shoebox Apartment Condo?
In Singapore, shoebox condominiums are typically defined as compact residential units with a size of around 500 square feet or less. These units are part of non-landed residential developments, such as private condominiums or apartments.
They generally range from 250 to 500 square feet, and often consist of a single room with an open layout combining the living, dining, and sleeping areas.
High Park Residences, a condo development in Fernvale, opens its booking phase on 17 July 2015. Buyers queue with their agents to book a unit after getting a ticket in a ballot process.
URA Shoebox Apartment Guidelines 2023
The Urban Redevelopment Authority (URA) introduced new guidelines on shoebox apartments in Singapore effective 18 January 2023. These guidelines primarily focused on developments within the Central Area of Singapore, aiming to promote a better mix of housing options and ensure quality living environments.
For condo buyers, those looking for shoebox units in the Central Area may find fewer options available. Larger condo units may be priced higher due to reduced unit density in developments.
1. Minimum Unit Size Requirement in the Central Area
At least 20% of dwelling units (DUs) in a development must have a minimum net internal area of 70 square metres (approximately 753 square feet). This aims to cater to families and larger households, ensuring the Central Area remains a vibrant place to live, work, and play.
2. No Change for Areas Outside the Central Area
The existing guideline implemented in 2018 remains in place for areas outside the Central Area: The maximum allowable number of dwelling units (DUs) is determined by dividing the gross floor area (GFA) by 85 square metres (approximately 915 square feet). In specific areas with infrastructure concerns, the GFA is divided by 100 square metres (approximately 1,076 square feet).
3. Rationale for 2023 Guidelines
To address the increasing number of smaller units being built in the Central Area. To encourage developers to provide larger units that meet the needs of families and long-term residents. To balance the diversity of housing options and maintain liveability.
The interior of a 388 sq ft apartment at Soho 188 in Race Course Road. Shoebox apartments range from under 400 sq ft to about 500 sq ft in size.
URA Shoebox Apartment Guidelines 2018
The Urban Redevelopment Authority (URA) announced in 2018 that it will cut the maximum number of units allowed in new private flat and condo developments outside the central area from early 2019, in a bid to manage potential strains and stresses on infrastructure.
Took effect in 2019
The 2018 guidelines applied to new condo development applications for projects submitted on or after January 2019. Under the rules, the maximum number of housing units allowed in a private or condominium development outside the central area will be arrived at by dividing the proposed building gross floor area (GFA) by 85 sq m. The pre-2019 formula divides GFA by 70 sq m.
Lesser condo units available
This means around 18 per cent fewer units will be allowed if developers maximise their quota. Taken collectively, analysts say the guidelines favour home buyers, as they are likely to result in larger unit sizes and possibly lower average selling price (in per square foot terms).
Savills Singapore senior director of research and consultancy Alan Cheong believes the new rules aim to address a potential oversupply of units that could have come on collective sale sites. "This especially as the population isn't growing as fast as supply," he added.
Mr Eugene Lim, key executive officer of ERA Realty Network, said: "Developers have kept unit sizes small in order to keep price quantums palatable. However, some buyers have found that these smaller units are not comfortable to live in."
Bigger condo units
"Given the new guidelines, developers will have to build bigger units in order to maximise the GFA of the land. Where possible, and in order to keep the absolute price of units affordable, developers may have to sell at a lower per square foot price," he said.
9 Stringent Areas
Meanwhile, nine areas will face even more stringent requirements, where the GFA will be divided by 100 sq m to work out the maximum number of units that can be built. This is to avert a severe strain on infrastructure.
These areas are Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang.
Now, only four areas - Telok Kurau, Kovan, Joo Chiat and Jalan Eunos - face the tougher guidelines.
Ms Tracy Tan, who works at an insurance company as the head of claims and operations, showing the guest room of her new four-room Pasir Ris One Design, Build and Sell Scheme (DBSS) flat which could accommodate only one single bed in 2015.
URA Shoebox Apartment Guidelines 2012
The URA first introduced guidelines in 2012 to rein in tiny units. Then National Development Minister Khaw Boon Wan had pointed out in a blog that the Telok Kurau area had experienced "a rampant development of tiny shoebox units" resulting in severe traffic congestion, shortage of carpark spaces and double-parking.
URA’s 2018 tightening came amid concerns over smaller unit sizes in new private housing projects, and that “the number of redevelopments in certain locations may strain infrastructure”.
Ms Goh Chin Chin, URA's group director for development control, noted: "This will also encourage developers to provide a more balanced mix of unit sizes to cater to the diverse needs of home buyers, including large families."
Meanwhile, after once encouraging developers to provide balconies to residents, the URA has addressed feedback that some balconies are "oversized" and that some home buyers find it challenging to find units without balconies.
From Jan 17, 2019, the bonus GFA cap for private outdoor spaces will be reduced from 10 per cent to 7 per cent, while the total balcony area for each unit will be capped at 15 per cent of the net internal area.
The URA also introduced a new bonus GFA scheme to encourage developers to provide more indoor recreation spaces such as gyms, libraries, function rooms and reading rooms to residents. The new scheme provides bonus GFA capped at 1 per cent of total area (or the GFA of the residential component for mixed-use developments).
Part of this article was first published in The Straits Times.