Would you buy a 366sqft freehold apartment in Siglap for $600K?

By The Folks @PropTalk - February 21, 2010 No Comments

It was reported in the papers that at least one unit at the freehold SIGLAP V at East Coast Road has been sold for $1634psf – an eye-popping psf price for a project that is not located centrally. SIGLAP V has also achieved a high median price of $1508psf across the 50 units sold in January, according to data from URA.

The hefty psf price at SIGLAP V has supposedly not deterred buyers because most of the apartments are relatively small. The 114 units available include one-bedders starting from 366sqft in size and one-bedroom plus study units starting from 463sqft. This means that the absolute price for a small unit is fairly modest. For a 366sqft one-bedder unit selling at $1634psf, for example, the buyer would have to fork out around $598,000.

“The psf price may raise eyebrows but if you look at the total quantum, it’s very affordable”, said one property consultant. “SIGLAP V’s location is a selling point. It is next to Siglap Centre and is near schools, cafes and other amenities”, said another.

Developers have launched shoebox apartments since early 2009 in bid to keep overall prices attractive amid uncertain times. And the formula has worked to some extent. The 72-unit SUITES @GUILLEMARD for example, was sold out even though some units measured just 258sqft.

“That’s where the market niche is for some of these developers with small land parcels. The projects have smaller units and may not offer a full range of facilities, but they allow people to own a private address at a fraction of the cost”

The wife and I are constantly puzzled by all the talk about “absolute price/total quantum” that seems to be the new marketing buzzword. Yes, $598K may be affordable amount in total quantum speak for some to own a private address, especially given the high psf prices we are seeing in the property market these days. But unless you are an investor or a bachelor/bachelorette seeking your own little pad, 366sqft is a rather tiny space even for a couple buying their first private home to stay in.

If you consider similarly land scare Hong Kong, which is famous for its shoebox apartments, we understand that a typical one-bedroom unit these days is at least 400sqft. And one does not have to worry about balcony, planter-boxes and bomb shelter eating into the already small living space.

Sure, the absolute price/total quantum may be affordable, but will you be happy living in a cage-like apartment? We reckon that it may be a better option to remain “public” (HDB), where you can easily get almost 4 times the living space for the same $500+K price quantum and probably in a more central location too. But as per always, this is just IOHO.



No Comment to " Would you buy a 366sqft freehold apartment in Siglap for $600K? "