In this article, we cover the following

• Definition of a shoe-box or micro-apartment unit
• Projects, floor plans and pictures of shoe-box units
• Why shoe-box units were built
• The government’s response to the increased number of shoe-box units
• Prices, rents, yields and profitability of shoe-box units
• What market trends mean for potential buyers, current owners, and occupants

There was a period of time in Singapore’s property market history where many shoe-box units were built and sold.

This trend of building shoe-box units began in the early to mid-2000s after the SARS health crisis, in response to rising property prices, which made larger units with a large absolute price quantum less well-received by buyers.

Once these shoe-box apartments were built, there was a slew or new and resale transactions up to 2012, when these units were developed, sold, and marketed both on the primary and secondary resale market.

Such units were well-received by buyers due to their palatable price quantum, many of which went below S$500k at the time of sale, despite higher per sq foot prices.

However, as shoe-box units proliferated in many neighborhoods, and with it a rising number of tenants and vehicular traffic (due to many occupants being able to occupy a small building footprint), there were disamenities introduced to various neighbourhoods.

This was especially pertinent in places where landed homes were demolished to make way for projects with shoe-box units.

As you would be able to imagine, a landed house that used to house, say, on average, 5 to 8 people, now has in its place a 5 storey building with 25 units, each housing 1-2 people, for a total of 25-50 people.

Subsequently, the government clamped down to prevent over-building of such units, and since 2012, there have been very few projects with shoe-box units.

With that very brief history of the shoe-box apartment sector covered, we will now dive deeper into its finer details.

Definition of a shoe-box unit

The definition of a shoe-box unit we have adopted is any unit sized below 400 sq ft (37.2 sq m).

Whilst there are other articles online that define a shoe-box unit as below 500 sqft, for our purposes, we’ve adjusted the cutoff to below 400 sqft.

This is because many 1-bedroom units are now sized between 400 and 500 sq ft.

For all intents and purposes, those units that are between 400 to 500 sqft, in my opinion, cannot be classified as shoe-box units, because they generally are livable, at least for 1 occupant.

Shrinking household sizes and more singles have also made living in a 400-500 sqft unit generally more acceptable.

However, the sub-400 sqft units are deemed to be in a different class of their own.

This is because the small sizes of such units generally carry with them negative connotations of a very small and micro-sized space that may impinge on an occupant’s sense of well-being.

Our analysis of shoe-box unit floor plans indicates some common characteristics, such as

• Small kitchenettes
• Dining space available for a maximum of 2 people
• Living room sofas or furniture that usually abut the sides of rooms or balconies (if the shoe-box unit has them)
• No area for occupants to put their shoes or shoe racks when they enter the house
• In some cases, there are no separate master bedrooms.

Compared to units that are between 400 to 500 sqft, and depending on the type of furniture used by the developer, there will usually be a separate bedroom, a small area at the doorway to put shoes, and possibly a more comfortably sized kitchen to prepare food and have a meal.

Descriptions can only go so far, so we’ve compiled a list of floor plans and photographs of shoe-box units below.

The projects are arranged by those at the top having the highest number of shoe-box units transacted in history, i.e., the Hillford historically has had the highest number of units that changed hands.

The Hillford (398 sqft)

The shoe-box floor plan of the Hillford has the kitchenette just outside the bathroom and almost abutting the living space.

It’s not the best experience to have the kitchenette ‘facing’ the bathroom.

While there is space for a master bedroom, the wardrobe and area to walk around the bed are very small. The floor plan indicates a small side table on each side, and one of them blocks the waredrobe door.

The good thing is that there is no balcony for this unit, hence allowing for more livable internal space for occupants.

Skysuites @ Anson (365 sqft)

The shoe-box floor plan of Skysuites @ Anson does not have a separate bedroom space which is likely to be a no-no for many occupants. While a sliding door to separate the living area and bedroom can be installed, it is likely to cause the space to feel smaller.

The kitchen somewhat encroaches into the living area, though one redeeming quality is that it is quite squarish in nature.

There internal usable space is further impinged on by the presence of a bay window.

Spottiswoode 18 (388 sqft)

The shoe-box floor plan of Spottiswoode 18 has a very small kitchen, into which the main door opens into.

The dining and living area are very tightly compacted, with space only for a 2 seater dining table where the diners face each other.

The sofa in the living area and bed in the master bedroom also abuts the window to the balcony and aircon ledge respectively.

Espada (363 sqft)

The shoe-box floor plan of Espada has the kitchen area partially obstructed by the main door.

The dining area combined with the kitchen area is fairly typical for shoe-box units.

While there is a separate master bedroom, the whole feel of the space is made somewhat compact because of the sliding door between it and the living/dining area.

The couch in the living room abuts the balcony screen door.

Prestige heights (334 sqft)

The shoe-box floor plan of Prestige Heights shows no separate master bedroom. Whilst there is a square shape kitchenette that could potentially be sealed up, the entire living area, combining the kitchenette, dining, living, and master bedroom, is fused into one space.

The only separate ‘room’ is the bathroom, even then, the location of the bathroom inside the kitchen is, in my opinion, rather disingenuous.

Alexis (388 sqft)

The shoe-box floor plan of the Alexis looks fairly regular and rectangular in shape and could pass off as a very small one-bedroom.

The main areas, living, dining, kitchen and main bedroom are all separate from each other, suggesting that the design was thought through.

Nevertheless, the fact is that the size is below 400 sqft puts it in the category of a shoe-box unit.

Viva Vista (377 sqft)

The shoe-box floor plan of Viva Vista is also fairly regularly shaped, and the main areas (living, dining, kitchen and bedroom) are all separate.

But there is a common characteristic with other shoe-box units, namely the main door that opens directly into the kitchen meaning there is no separate area for an occupant to put their shoes or a shoe-rack when they enter the unit.

Parc Imperial (398 sqft)

The shoe-box floor plan of Parc Imperial, whilst being fairly regular and rectangular in shape, is similar to Prestige Heights in that there is no standalone master bedroom.

Haig 162 (355 sqft)

The shoe-box floor plan of Haig 162 is long in shape. Whilst there are no sharp or odd-shaped corners, the dining area is very compact.

This is possibly because dining space was sacrificed to allow for a larger bedroom, household shelter and a balcony.

From the looks of it, any occupant moving from the kitchen to the living area will face a tight squeeze given the narrow walkway.

High Park Residences (388 sqft)

The shoe-box floor plan of High Park Residences is similar to Prestige Heights and Parc Imperial in that there is no standalone master bedroom.

Check this out – you may be interested in our post on Singapore’s new condo launches in 2026.

Projects with the most number of shoe-box unit transactions

Between 1995 and 2025, the projects that had the largest number of shoe-box units are listed below, together with the cumulative number of transactions.

1. The Hillford (Jalan Jurong Kechil) – 292
2. Skysuites@Anson (Tanjong Pagar area) – 216
3. Spottiswoode 18 (Tanjong Pagar area) – 205
4. Espada (Somerset area) – 183
5. Prestige Heights (Balestier area) – 179
6. Alexis (Queensway area) – 161
7. Viva Vista (Buona Vista) – 146
8. Parc Imperial (Pasir Panjang)- 136
9. Haig 162 – 121
10. High Park Residences (Fernvale road) – 107
11. The Interweave (Balestier area) – 103
12. Nottinghill Suites (Toh Tuck area) – 103
13. Suites @ East Coast – 94
14. Kovan Grandeur – 86
15. Skysuites17 (Balestier area) – 82
16. Suites @ Paya Lebar – 79
17. RV Edge (River Valley) – 64
18. Suites @ Sims – 60
19. City Loft (Farrer Park area) – 60
20. Park Residences Kovan – 59

Why were shoe-box units built?

Firstly, as background, there were virtually no shoe-box units in the Singapore property market before 2005, as there was no market incentive for developers to build such units.

It was only in 2006 and 2007 when property prices started to rise rapidly that developers took notice and started building smaller units with more palatable absolute prices.

This is just but one reason, the other reasons are covered below.

Significant price increases in 2004 to 2006 and the subsequent focus on price quantum instead of per sq feet price

There was a rapid run-up in property prices post-SARS in the years 2004 to 2006, and this caused affordability concerns among buyers.

Naturally, developers responded by building smaller units, which made the overall price quantum more palatable for consumers.

Developers also knew the psychology of buyers, who deprioritized the high per sq foot headline number due to the palatable absolute price quantum.

Investor-driven demand

Shoe-box units are meant primarily for investors and not for families to stay in over the long term, due to its smaller unit sizes.

Before 2010, there were minimal cooling measures on the Singapore property market, and investors were free to buy, rent, or flip properties.

Developers saw there was demand from investors to buy investment properties and subsequently marketed shoe-box units as a useful investment or speculation vehicle, given its low price quantum.

Furthermore, shoe-box units were marketed as a yield-driven play for investors which could provide a source of income at a low price quantum.

Conversion of landed homes to shoe-box units

Small-sized boutique developers, unable to compete in government land sales, turned to purchasing and converting landed homes into projects with shoe-box units

To developers, this was more profitable than simply rebuilding a landed project into a similar, albeit newer landed home.

In addition, such smaller projects were not the typical investment targets of large developers like CapitaLand, CDL and Frasers Property among others. This allowed smaller developers a higher chance in securing pipeline proejcts.

Planning rules rewarded more units, not bigger homes

Under the old Gross Floor Area (GFA) and plot ratio rules, developers maximised value by splitting the allowable floor area into more units.

There was no rule that stipulated a minimum average size of units in a development.

Accordingly, developers tried to build as many units into a project as possible as more units meant more saleable titles and higher total revenue for the developer.

At the same time, there were rising land prices, and developers had to find creative ways to fit more homes on expensive plots to increase overall revenue.

The increase in the single-person population and smaller family sizes created demand for compact, efficient living spaces

On the purchaser’s side of the equation, there was a rising proportion of singles and family sizes that were trending downward.

This resulted in more demand for smaller-sized units to cater, and developers caught on these trends to market shoe-box units to that segment of the population.

The government’s response to the rising prevalence of shoe-box units

For typical investors looking for a source of rental income, shoe-box units are generally welcomed because they provide the ability to buy a unit at a lower price than 1 or 2-bedroom units.

However, a high prevalence of shoe-box units causes disamenity for a neighbourhood, especially when the surrounding public infrastructure cannot accommodate a lot of people.

For example, narrow road lanes in Telok Kurau or the Joo Chiat area can become congested because of the heavy vehicular traffic caused by increased footfall.

These problems became known to the URA, which began to study the trend closely, around the same time as there was a surge in shoe-box transactions in the 2010s.

First round of regulation in 2012

Following the surge in the number of shoe-box units transacted and the disamenity caused to the surrounding area. URA, in 2012, introduced guidelines on the maximum permissible number of dwelling units (DUs) for a non-landed residential development outside the Central Area to moderate the excessive development of shoebox units.

The maximum number of DUs was derived by dividing the proposed building Gross Floor Area (GFA) by 70 square metres (sqm).

Four areas, namely Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, were subject to more stringent requirements to better address local infrastructure capacity concerns arising from new developments, i.e., the maximum number of DUs was derived by dividing the proposed GFA by 100 sqm.

Second round of regulation in 2018

In 2018, URA observed smaller dwelling unit sizes in new private housing projects. In addition, the number of redevelopments in certain locations began to strain local infrastructure.

The URA therefore revised the existing guideline on the maximum allowable number of DUs for all new flats and condominium developments outside the Central Area to:

URA and LTA have also identified nine areas (Marine Parade, Joo-Chiat Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford, and Loyang), where the cumulative effect of new developments could pose a severe strain on local infrastructure. For these areas, the maximum number of DUs for all new flats and condominium developments will be:

In effect, the revised guidelines ensure that developers provide a wide range of unit sizes to cater to the diverse needs of all segments of the market, including larger families.

Third round of regulation in 2023

In 2023, the URA introduced a new regulation, stipulating that all new flats and condominiums within the Central Area, as well as the residential component of commercial and mixed-use developments, will be required to provide a minimum of 20% of DUs with a nett internal area of at least 70sqm. 

In totality, the guidelines since 2012 have, in effect, stopped the trend of developers building shoe-box units.

Hence, the stock of such units has reached its peak and is no longer expected to increase. Transactions will then purely be for resales, instead of new sales, and is likely to remain around the range of 100 to 150 resale units transacted annually.

Rents, prices, and yields for shoe-box units

Prices of shoe-box units trended up strongly between 2005 and 2011 when global and Singapore interest rates were low.

As of 2025, average prices stood at S$725k, up from about S$250k in the early 2000s.

This represents an annualized growth rate of about 4.4%, which is just slightly lower, but generally in line with price growth in the overall property market.

There was a period of stagnation between 2011 and 2021 because of various government regulations on the industry.

But prices rose together with the overall market during and after COVID.

Average transacted price of shoe-box units

The trends are similar for per sq foot prices, which are now at S$1,911 psf in 2025, up from S$700 in 2000.

Average per sq foot price of shoe-box units

Rental yields for shoe-box units across our sample of 20 properties with the highest number of cumulative transactions since 1995 range from 4.0% to 5.7%.

The majority of yields are between 4 and 5%.

This is approximately 1.5-3.5% points higher than yields for condominium units.

The highest yield of 5.7% is due to the 60-year tenure of The Hillford.

Apart from The Hillford, Skysuites @ Anson, High Park Residences, and Kovan Grandeur, all other projects in our sample set are freehold in nature.

As is reflective of the market, freehold yields are generally lower than those of leasehold units.

The list below uses only shoe-box units in each development and computes the average rents over the last 2 years, divided by the average transacted prices over the previous 2 years, to determine the rental yields of shoe-box units.

1. The Hillford (60-year lease) – S$2,800 per month, S$590,000 transacted price, 5.7% gross yield
2. Skysuites@Anson (99-year leasehold) – S$3,680 per month, S$903,000 transacted price, 4.9% gross yield
3. Spottiswoode 18 (freehold) – S$3,300 per month, S$903,000 transacted price, 4.0% gross yield
4. Espada (Somerset area) (freehold) – S$3,300 per month, S$900,000 transacted price, 4.0% gross yield
5. Prestige Heights (Balestier area) (freehold) – S$2,800 per month, S$690,000 transacted price, 4.9% gross yield
6. Alexis (Queensway area) (freehold) – S$3,000 per month, S$800,000 transacted price, 4.5% gross yield
7. Viva Vista (Buona Vista) (freehold) – S$2,900 per month, S$700,000 transacted price, 4.6% gross yield
8. Parc Imperial (Pasir Panjang)(freehold)- S$31000 per month, S$760,000 transacted price, 4.9% gross yield
9. Haig 162 (freehold) – S$2,700 per month, S$700,000 transacted price, 4.6% gross yield
10. High Park Residences (Fernvale road) (99-year leasehold) – S$2,700 per month, S$650,000 transacted price, 5.0% gross yield
11. The Interweave (Balestier area) (freehold) – S$2,500 per month, S$680,000 transacted price, 4.4% gross yield
12. Nottinghill Suites (Toh Tuck area)(freehold) – S$2,700 per month, S$730,000 transacted price, 4.4% gross yield
13. Suites @ East Coast (freehold) – S$2,500 per month, S$690,000 transacted price, 4.4% gross yield
14. Kovan Grandeur (99-year leasehold) – S$2,400 per month, S$640,000transacted price, 4.5% gross yield
15. Skysuites17 (Balestier area) (freehold) – S$2,700 per month, S$710,000 transacted price, 4.6% gross yield
16. Suites @ Paya Lebar (freehold) – S$2,500 per month, S$670,000 transacted price, 4.5% gross yield
17. RV Edge (River Valley) (freehold) – S$3,100 per month, S$820,000 transacted price, 4.5% gross yield
18. Suites @ Sims (freehold) – S$2,600 per month, S$670,000 transacted price, 4.7% gross yield
19. City Loft (Farrer Park area)(freehold) – S$2,600 per month, S$690,000 transacted price, 4.5% gross yield
20. Park Residences Kovan (freehold) – S$2,600 per month, S$660,000 transacted price, 4.7% gross yield

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Profitability

On average, shoe-box units in a sample of the top 10 properties with the highest number of transactions have more profits than losses.

Average profits range from S$55k to S$150k, though most projects had profits below S$100k. There were very few projects that had units which achieved more than S$100k of profits.

On the other hand, average losses range from S$15k to S$85k.

The higher occurence of profitable transactions is generally expected given the overall upward trend of property prices in Singapore.

Do note that the profits and losses are on an average basis and there are some transactions that have greater profits and losses than average.

One therefore needs to be careful in interpreting this as shoe-box units being a high probability avenue to make profits.

For individual property decisions, a loss can be a significant impact to one’s investment decision or retirement plans, regardless of whatever the average figures show.

Losses have tended to be below S$100k because of the overall smaller quantum of shoe-box units. However, on a percentage level, the losses in some transactions translated to 10% to 20% of the original price, which was a hefty loss, for the owner at that time, to swallow.

The list below shows the average profit and loss of shoe-box units for each project since its development.

1. The Hillford – S$69k profit (110 transactions), S$15k loss (2 transactions)
2. Skysuites@Anson – S$75k profit (51 transactions), S$49k loss (13 transactions)
3. Spottiswoode 18 – S$85k profit (50 transactions), S$30k loss (12 transactions)
4. Espada (Somerset area) – S$70k profit (52 transactions), S$35k loss (21 transactions)
5. Prestige Heights (Balestier area) – S$75k profit (81 transactions), S$40k loss (12 transactions)
6. Alexis (Queensway area) – S$150k profit (81 transactions), S$55k loss (15 transactions)
7. Viva Vista (Buona Vista) – S$60k profit (66 transactions), S$79k loss (11 transactions)
8. Parc Imperial (Pasir Panjang)- S$110k profit (66 transactions), S$30k loss (10 transactions)
9. Haig 162 – S$90k (55 transactions), S$55k loss (6 transactions)
10. High Park Residences (Fernvale road) – S$100k (45 transactions), no losses

Developers of shoe-box units

Developers of projects with a majority of shoe-box units have primarily been small and boutique-sized.

These developers have traditionally been World Class Land, Fragrance Land, and Oxley.

Unable to bid competitively for government land sales sites and lacking expertise in developing large-scale projects, these boutique developers had to fall back on another strategy of making money.

For example, some developers bought clusters of landed homes for redevelopment into mid-sized projects with many shoe-box units.

The larger property companies such as CapitaLand, CDL, and Frasers, including Guocoland, UOL, etc., have not generally developed properties with a large proportion of shoe-box units.

What this means for potential buyers, current owners, and occupants

The shoe-box market has generally stabilized since the boom-and-bust cycle of the past 20 years.

This has reduced the risk of investing in the market, but it has also reduced the potential returns.

Now that the market has stabilized, it is a good time to assess what the future holds for those looking to participate in the shoe-box market.

Potential buyers (investors or owner occupiers)

Investing in the Singapore property market generally provides a positive return over time, and this is likely to be the case for shoe-box units too.

For investors who do not yet own a unit, there are multiple considerations given the additional buyer stamp duty regime in Singapore.

One key consideration is whether you have a ‘free’ name to own the unit.

As we mentioned earlier, the rents for shoe-box units are generally in the range of S$2,000-3,500 per month with yields ranging between 4-5+%.

For investors seeking a monthly income stream, this monthly paycheck can be attractive.

For owner-occupiers, the general advice is that living in shoe-box units is not something that can be done over a long period of time.

If you want to stay for a short to medium-term period, then that will be fine.

But life circumstances change, and it is more likely than not that you will need to find a larger unit. Buying a small unit does not provide you with the optionality to accommodate future changes.

However, if your budget only allows you to purchase a shoe-box unit, which, as we mentioned earlier, is in the range of S$600k to S$900k, then that is certainly something to consider.

At a price of S$750k, 3.5% interest rate, 30-year loan tenure, and 75% loan-to-value, the monthly mortgage is S$2,526.

Assuming a debt service ratio of 30%, someone earning about S$8.4k a month should be able to service such a property comfortably.

For investors who are thinking of renting out the unit, the monthly rent paid by the tenant should be able to cover the mortgage partially.

However, one must bear in mind that there is a potential chance to suffer losses on investing in shoe-box units.

Furthermore, the future buyer of your shoe-box unit will be limited to a smaller buyer pool.

Current owners

Most shoe-box units are freehold in nature, and that is a plus point for investors who would like to hold something for multiple generations.

One thing to consider is that most buildings, especially those with a large proportion of shoe-box units, do become obsolete with time, regardless of whether they are freehold or leasehold in nature. For projects with many shoe-box units, this is even more important because of the possibly frequent turnover of tenants, the smaller-sized nature of developments (say, less than 100 units), and generally lower quality of upkeep.

With the profitability analysis done earlier, there is also a potential chance for units held by current owners to be sitting on a loss-making position (i.e. latest valuation is lower than purchase price).

In such a situation, current owners need to have a plan to either cut losses or to hold on for the long-term, but potentially never be able to recoup the initial purchase cost.

Tenants

For tenants, the advantage of staying in a shoe-box unit is that you will have the whole space to yourself, vis-à-vis renting one room in a, say, 4-bedroom unit, and sharing with other tenants.

This can provide a greater level of privacy than communal living does.

Rents will definitely be lower than comparable 1-bedroom units, and you still get a space that has functionality (kitchen, dining, living area, possibly a separate bedroom).

Contact us

If you’re interested in buying, selling, or renting out your shoe-box unit or other properties, feel free to drop us a line, and we’ll be happy to share our market insights and expertise with you.