Why shoe-box units are big winners in new tax scheme

Yearly rent is below $55,000.

According to Knight Frank, shoe-box units, which command lower prices compared to bigger units in the same locations, could likely benefit from the new tax policies unless they are unable to find tenants.

Almost all shoe-box units sized 500 sq ft and below have annual gross rent less than $55,000.

"As the first $8,000 AV will have 0 per cent tax rate compared to $6,000 AV currently and the next $47,000 AV will remain at 4 per cent tax rate, shoe-box units are likely to experience lower payable tax under the new scheme if they are owner-occupied or leased out," Knight Frank said in a report.

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