Policy measures targeting shoebox units cannot be ruled out

Shoebox units now accounting for 27% of total sales as of 1Q12, up from just 15% in 4Q11, raised the alarm.

According to UOB Kay Hian, sales volumes for May eased 32% mom after a robust four months as more buyers moved to the secondary market in view of the widening price gap.

Prices across some of the past launches also have moderated by 2-5%, with the effect being more pronounced in high-end/luxury segment projects. Notable mom slowdown in median prices for May was seen by D’Leedon (-7% mom), The Scotts Tower (-6% mom) and The Nautical (-5% mom).

Shoebox units’ share of sales volumes also fell to 13% vs 27% in 1Q12.

UOB said that the moderation of prices and volumes reduces the risk of additional severe policy measures at this juncture. However, policy measures targeting property segments cannot be ruled out as the
low liquidity environment has artificially fuelled investment demand for smallersized units (<S$1m).

"During 1Q12, despite the overall price fall, mass-market prices remained resilient with a 1.1% qoq increase (4Q11: +0.6% qoq). This was mainly due to the rising popularity of small units (less than 50sqm) which accounted for a staggering 27% of total sales (4Q11: 15%). This has prompted National Development Minister Khaw Boon Wan to raise alarm bells and comment that the government will monitor these developments closely and will not hesitate to take appropriate action," said UOB.

Possible measures, it said, include restricting the proportion of shoebox units in the upcoming land sales or disallowing units below a specific size.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia