Prices for the minute flats, normally measuring less than 500sqft, rose 14% to an average $1,549psf in August 2011 from a year ago.
In contrast, psf prices increased 4.9% for condominiums measuring between 501 to 1,500sqft; and rose 9.9% for condos of more than 1,500sqft.
The hotspot for shoebox units was District 15 with 513 apartments transacted, while the lowest was in the non-prime area District 21 with only 11 of the total 197 deals crossed in August.
Shaun Di Gregorio, iProperty Group CEO, said the shoebox "present attractive investment opportunities," despite the steep pricing and market uncertainties posed by European and US debt crises.
Some analysts such as Mr Ku Swee Yong, the CEO of International Property Advisor Pte Ltd, speculate the rise demand for shoebox apartments in August may be due to the spike in such properties being developed during that period.
"We cannot assume that the strong take up of shoebox units is due to the popularity of investors because it is a relatively new market," said Mr Ku.
Source: Channel News Asia
Whether you are a convert or skeptic on the issue of rising popularity of shoeboxes, there are always two sides to a coin (unless you are Harvey "Two-Face" Dent, of course). Below is an article in The Straits Times today whereby the writer seems perfectly happy living in her shoebox unit and professes that "the popularity of small apartment living is an index of a city's sophistication."
So, what do YOU think?