Size Doesn't Matter?

With the launch of the latest craze in town, the iPad Mini, who is to say small, is not desirable or that bigger is always better? The iPad Mini is believed to dominate the 7” tablet market and will be expected to replace up to 25% of the current 9.7” iPad users.

Can we say the same for houses? This is an important question that we Singaporean need to ask ourselves. Inevitably, due to land scarcity, the reduction in floor areas of newer housing has reduced. One good example is how a HDB 4A model has shrunk from 103sqm in year 2002 to as small as 85sqm (or smaller) today. Maybe, it is not so much of how much space we need, but how effectively or creatively we can manage our living area (See “How to live in a shoebox apartment?” Here, we are going to explore some interesting (weird?) concepts which might redefine our perspective towards size of a home, and accept the future of smaller housing.

Introducing the Shoebox Mini

In Warsaw, Poland, we see the world’s thinnest house by Architect Jakub Szczesny of the Polish firm Centrala. It is located in a 5 foot by 2 feet alley (converging to 50 inches at the end) between two buildings but it houses all the necessary furniture and fitting such as a “nearly double-size” bed, a toilet, a “bean bag sofa” and even dining and study tables! Total floor space is about 46 square feet (4.27 square meter). Also, this is a duplex, with desirable floor to ceiling height.

But is this truly liveable? Technically in accordance to Poland’s housing regulations, this is too small to be considered a residential dwelling. Well, I would say it is very much dependent on individual, and in this case, the maximum is TWO individuals. Maybe the initial general reaction is that you must be crazy enough to be able to live in such a house, but what if this is the norm for the future? Also, if this were to be located in the Orchard or CBD area, and is priced at about $3000psf, would you still turn this away? Even at the same dollar per square feet, the next design will definitely be a catch.

Coming Soon: The Shoebox Ultra Mini

Imaging a world, sometime in the far away future whereby the human population has exploded to 2000 billion (present population is estimated to be about 7 billion), where will we stay? Or should I ask:”How do live?” Van Bo Le-Metnzel of Hartz IV Möbel might just have the solution - The One Square Meter House (This should be the world’s smallest house).

Being mobile (wheels attached), this house concept is designed for you to be able to choose your location of stay, your window view and even your neighbours. Although it doesn’t come with the toilet facility or a king size bed, even at a whopping $5000psf, this will only set you back at $53,000. Where in Singapore can you get a house for such an attractive price? However, based on initial trial prices, per night rental for the “one sqm house” is about $1.63, which means investors beware.

So does size matters?

What will be next – the Shoebox Mega Mini measuring One-Square-Feet and it comes fully furnished? Although these are currently still concepts, we are not saying that they will not turn into practical reality. My advice is to keep an open mind and be ready to embrace weirder and more abstract designs for houses in the coming years ahead. Who says shoebox units are small?

Extracted from:

1. http://sg.news.yahoo.com/blogs/spaces/story-behind-within-world-thinnest-building-210352941.html
2. http://inhabitat.com/the-one-sqm-house-that-is-taking-over-the-world/

Investment Opportunities at the Transforming Farrer Park Enclave

One of Singapore’s most exciting areas gazetted for future development by the Urban Redevelopment Authority. Farrer Park combines the best of both worlds in one location, with the historic Little India district on one side and the vibrant Bras Basah-Bugis arts and entertainment precinct on the other. Quaint and charming arts houses, boutique hotels and new F&B establishments that are sprouting to life add much vitality and variety to the area.

Shop houses along Serangoon and Jalan Besar offer some of the city’s best local fare, while the 24-hour Mustafa Centre and eco-friendly City Square Mall draw crowds with their offer of a unique retail experience.

The transformation of Farrer Park has taken shape over the past few years with the successful completion of the Farrer Park MRT Station to Tekka Market’s remarkable facelift. At the same time, heritage landmarks are lovingly preserved, while modern infrastructure continues to boost the area’s accessibility and development potential.

In addition, Connexion at Farrer Park will be one of the world’s first integrated healthcare and hospitality complexes. Comprising a specialist medical centre with 189 consultation suites, a private tertiary hospital, a luxury hotel equipped with state-of-the-art conference and wellness facilities and a ground floor lifestyle retail zone, Connexion (built directly above Farrer Park MRT Station) will strengthen and support Singapore’s position as Asia’s leading medical hub when it is completed in 2013.

Opportunities for Property Investors

In tandem with the general increase in properties prices across Singapore, the private property prices in the Farrer Park precinct (District 8) has also risen over the past years with the completion of City Square Mall. Labeled as a “quiet achiever” by property experts and consultants, City-fringe homes tend to be overshadowed by those in prime and mass-market areas.

Notably, in recent years, the demand of show-box apartments (which refer to less than 500 square feet) within the Farrer Park precinct has gained popularity due to its proximity to Orchard, City Hall and CDB area.

TARGET: One-Bedroom Apartments at the Farrer Park Precinct

City-fringe one-bedroom apartments at the Farrer Park precinct are highly sought after partly for their accessibility, public transport links and lifestyle amenities. Investors also find it easy to get expat tenants as their accommodation budgets scale down.

From an investment perspective, the price level for a one-bedroom residential apartment at Farrer Park ranges from S$600,000 to S$900,000, thus offering good affordability for property investors.

More importantly, rental prices of Farrer Park one-bedroom residential properties have increased with the ongoing transformation of the heritage precinct.

  

As seen in the following graph, indicative rentals for condominiums nearby the Farrer Park MRT station range from S$3.84 psf to S$4.67 psf. For one-bedroom units, rental price per square foot are generally higher due to its compact size.

Using the latest freehold development project, Le Somme (located next to City Square Mall), in the area for reference, the approximate rental yield is as follows:

Price of a one-bedroom apartment: S$750,000

Size: 560 sq ft

Expected Rental per month: S$5.35 psf or approximately S$3,000 per month

Expected Rental Yield:  4.8% 

Driven by its proximity to city and amenities, one-bedroom apartments within Farrer Park area will likely to see potential upside and good rental yields with its affordability and growing popularity.

To find out more details on the latest freehold development project in this area, please visit: www.le-somme.com

The information contained herein does not constitute or form any part of any offer for sale or subscription of, or solicitation, recommendation or invitation for or in relation to any offer to buy properties nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever.

All the information contained herein has not been independently verified. No representation or warranty, express or implied, is or will be made in or in relation to, and no responsibility or liability is or will be accepted by the writer or any of their affiliates, advisers or representatives as to the fairness, accuracy, completeness or correctness of, this information or any other written or oral information made available to any interested party or its advisers and any liability therefore is hereby expressly disclaimed. Any prospective property purchaser should make its own investigation and all information provided.

The information contains certain forward looking statements and forward-looking financial information. Such statements and financial information are based on certain assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from those expressed in these forward looking statements. Predictions, projections or forecasts of the economy or economic trends of the markets are not indicative of the future or likely performance of the properties listed herein. The inclusion of such statements and information should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions by any other person, or that the forecast results will or are likely to be achieved. Actual future performance could differ materially from these forward-looking statements and information.

Bubbles Bubbles, but are they Trouble?

Many talks about the “property bubble” nowadays and that the inevitable will be coming soon to Singapore’s real estate market. But, if you were to consider this in context, what are the basis for such hype? Was it that the property prices are launching ahead despite the government numerous control measures? Or was it that the papers are always reporting the fantastic sales for new launches?

Why are the property prices ever increasing for almost three years straight on? When will the train loses it lustre? If you are in touch with the news, you would have notice that since the 1^st quarter of 2012, monthly property price index has been slowing down, and seems to be reaching a plateau. Objectively, this is a good sign for the buyers as this indicates a signal of the price stabilising. But if you were to take a step back, the more important question for buyers will be, “Is it a good time to buy?” I might not be entirely right, but dependent on the individual’s needs, wants and also the financial status, this could be a good time to consider getting that home that you have planned for (given the fact that most buyers had waited for almost a year for the price to drop – no thanks to financial reports at the start of 2012 forecasting the downturn of the market by at least 20%).

Why do I say that? Given the current global issues, we can safely say the world is pretty messed up – Europe is clearing up their backyard matters and America sweeping their dust under the mat. Of no surprise, Singapore can be considered as one of the more stable and “hassle-free” country right now (Actually, we could have been like this for a long time – do a Google check on this). And comparing the various financial tools (equity, FOREX, bonds etc) available, despite this recent bubble-bubble hype, property seems to be the most stable and might be the most profitable of the batch. Less the disadvantage of ill-liquidity, which other platform is able to help secure a growth rate better than your CPF interest rate of 2.5% annually? The key word here is “secure.” Furthermore, in the South East Asia region, the only two property market presently stables enough to consider your dollars and cents would have to be Singapore and Hong Kong. See the government interventions as positive and active interactions; logically, if the market does not have potential, such events would not have happened. The government understands that the property market forms part of the backbone the economy growth and its’ intervention is necessarily to SLOW DOWN (not stop or reduce) the growth, so as to pro-long the valuable returns to the country.

There have also been forecasts with regard to the expected declining volume of property transaction in Singapore till end of year – but does this mean that the prices will fall? To the common minded, this is usually the first thought when the topic is raised. However, if you were to take a closer, you might realise that FALLING VOLUME DOES NOT necessarily equate to the fall in prices. An instant would be the continued land sales by the government for residential development, and a good example would be the site next to Sky Habitat in Bishan. Sky Habitat is currently going for an average of $1700psf; what do you think the new site will cost? If nothing goes wrong, the site at Bishan would be sold at a price higher than that for Sky Habitat, and subsequently this would mean apartments going for higher than an average of $1700psf. If not, why would any developer buy the land if no basic profit is insight?

I am not saying that the market will never fall, but that the inevitable correction would be minimal. If you are an investor, I would recommend continuing to observe the market and be aware of the trends. Watch out for tell tale signs of the market picking up steam again when the current sentiment sets in. But never let history repeats – don’t over-wait till the next government measure. The most recent one proved to be one that affected investors more than others. And if you are buying for own stay, now may be a time to purchase your unit of choice, as this could be the new low in the coming years. Even with the correction insight, it’s effect would be expected to run out by the time you are selling the property without a penalty

How to live Comfortably in a Shoebox Apartment?

Before we start off, let’s try to modify the terminology for “shoebox” apartments to avoid adverse priming effects. But I am not suggesting that we deny the fact that “shoebox” apartments, which are definitely cosy for two or less, can be overwhelming for family of five. Some good terms that I am going to refer to in this article are Integrated Loft, Versatile Apartment or even Mirco Loft (the last term has been widely used in the past to describe apartments lesser than 500sqft).

Now that you officially purchased your very own first 500sqft home, it’s time to indulge in designing and creating your space – this is a more fun and interesting way than just to describe the renovation process. Frankly, one major advantage of a shoebox unit is that since the space is relatively modest, remodelling of the unit would not burn a hole in your pocket – under normal circumstances. And the best take away is lesser housework for all (personally, housework are painful but necessary chore).

The chief (and important) characteristic of human beings is adaptability. Given any environment, we can, and will adapt. In some situation, more often than not, we even conquer. This is similar to our living environment – give us a 500sqft space and we will shift the settings to fit our everyday needs. Before you start sketching, here are two important tips that you might want to consider. 

Hide & Seek

Since it is physically not possible for us to have a separate living, dining, bedroom etc in the Versatile Apartment, one solution is to have them “appear” at any one time when in use– Hong Kong and Japanese style of living.

One revolutionary design was the “Domestic Transformer” by Architect Gary Chang, whereby a 344sqft Hong Kong apartment can magically be converted to 24 different rooms, each of their unique function. The take away here is to be able to create a functional living environment, catered to your (or with your partner) daily needs, and not to rare occasions, such as your group of friends of ten visiting.

If you find this too hard to believe, you can always keep it simple with the clean and fresh look by BAKOKO (Japan) for a 400sqft apartment (Click on link for more pictorial illustrations). Concept is once again maximising functionality of every inch of space, with our next important tip – creating storage space.

Extracted from http://www.digsdigs.com/small-apartment-design-in-modern-and-minimal-style-by-bakoko

 Creating Storage

If you are single, isn’t it a great feeling to be able to stay in an open concept apartment, with a gigantic photo of the London Subway System across the wall, and  where the apartment itself shouts your inner creativity and free spirit? But think again, where will your vacuum cleaner and mop go? What is frequently missing in designs and photos of open concept apartments are storage areas. As tempting as the open concept might sound, but once you moved in, the sight of your detergent bottle sleeping with your pot and pans, on the floor beside the sink may not be what you have in mind in the first place.

So given our situation of having a more delicate space area to design, how can we prevent home-design malfunction from happening? The answer lies in areas not within sight. Stow away with “secret compartments” at your feet or top of your head, which are usually the least explored space in any homes. Architects Marc Baillargeon and JulieNabucet converted this 130sqft space (Click on link for more pictorial illustrations) into a fully functionally and neat apartment, which was once the master bedroom of a bigger apartment in Paris.

Extracted from http://www.wired.com/design/2012/05/paris-apartment/?pid=351&viewall=true



Imagine if a space of 130sqft can be optimised to this incredible stage, how would your 500sqft apartment shine?

If your unit has a floor to ceiling height of at least 3.2m, why not consider getting yourself a mini loft to enhance your space? This will definitely help if you are not the type who likes to make their bed in the morning. What KSWA did for this low-square footage apartment in New York City not only helped increase their storage area, but almost enhanced privacy within each individual section of the unit.



 

Extracted from

http://dornob.com/loft-bed-turns-single-floor-studio-to-two-level-apartment/



In Conclusion…

Living in a Versatile Apartment, though not that straightforward, is definitely fun and challenging. Be inspired and create space for yourself. You will be surprise at the end of the day how adaptive you can be. Lastly, remember this three golden words before you start building:

“Measure Measure Measure”

Why live in a shoebox unit?

Before we attempt to answer the ‘why,’ let us start with the ‘what?’ - What is a shoebox unit? It is technically any apartment of size that is 500sqft or smaller. Some called them the “mickey mouse,” but many just call them rooms instead of apartment. These units’ popularity sprung up within this decade, following closely like our neighbouring countries such Hong Kong and Japan, whereby land availability for residential purposes are scarce, especially so nearer to city areas. In Singapore, we are basically city end to end.

Typical Profile of a Shoebox Unit Occupant

Can you actually compact a house into a home? Furthermore, some of these miniature housing comes attached with a bomb shelter and huge balcony, making the “liveable” spaces even more challenging. Strictly speaking, shoebox units are not for all. You would not expect a family of five living together in one right? Shoebox units are generally more suitable for singles and couples (without kids), whereby the management of space is much more flexible. Try putting a baby into the equation and you might need more than one shoebox unit for that combination.

Checklist for home buyers		Yes	No
1	Do you intend to stay alone in the unit?		X
2	If no for Qn 1, will there be more than 2 person staying in unit?		X
3	If yes for Qn 3, do you have children?	N.A.
4	Is location an important consideration?	X
5	Is size an important consideration?		X
6	Is budget an important consideration?	X
7	If yes for Qn 6, Do you intend to rent if buying is not an option?		X

This is a typical profile of a potential buyer for a shoebox unit, and usually they fall within the age group of 24 – 35 years of old. Of course there are other combinations, but I believed this is one of the better profiling, except if you are referring to a bachelor.

Location Factor

One of the main reasons why shoebox units remain attractive is their location. Many of them are actually situated in CBD, down town or city fringes, where they provide the occupant(s) the convenience of travelling to work – especially so in reducing the hassle of traffic in the mornings to work. To many young ambitious working professionals, time equates money, and this factor can be seen as need.

“Why not rent?” If given a choice and correct market scenario, I would have to say that to own is much better then to pay the mortgages for someone else. Of course if the down payment of at least 20% is not an issue.

Budget Factor

Theoretically, who would not want stay in a bigger house, such as a 5 bedrooms duplex penthouse in the heart of the CBD, whereby your workplace is just located in the next building? I know I would. This comes to our other important factor – Budget. Yes, the ‘B’ word that many would hate to face when buying a property. In the real world, there are people who can only buy ONE property and that is to for own stay. If time and/or location are critical factors in their consideration, with limited budget, choice may be just an illusion. We have to remember, not all of us can own a property without wiping clean all cash flow and CPF.

Opportunity Factor

It is rather safe to say that the peak, and probably most enjoyable stage of our lifespan is between 25-35 years old whereby you are most likely be working in the managerial level, have more free time and higher spending capability. Before that, though it is more carefree your spending power remains a major constraint; And after this stage, though financially more stable, commitment level is definitely higher.

Think about this: If you do not stay in a studio or one bedroom apartment during this stage, whereby you can design and allow your creativity to flow, when can you ever do it in the future, assuming the normal course of life stages? (Yes – I am talking about living your 20s in full colours!) Remember, you are only 25 or 30 years old once.

Leaving Note

On the hind side, we must also recognize that there is also the dark side for shoebox units, such as incredible dollar per square foot as compared to bigger sized units, resale difficulties, rental cap etc. These are real and practical reasons as well. However, this article is focused more towards buyers-turned-occupiers of shoebox units rather than investors of shoebox units, and that one should always weigh all considerations before purchasing a property.

Most of the time, you will not be able to get the best of all things in life; it is just about balancing the constraints, the needs and the wants. Shoebox units are not all bad as they can be the alternate avenue and solution for those with the specific requirements.

Something interesting: http://www.propertyguru.com.sg/en/property-management-news/2012/6/33281/Nothing%20‘inhuman'%20about%20shoebox%20homes:%20Oxley%20boss?utm_source=emailer-italerts&utm_medium=edm&utm_campaign=news-daily