Still, taken together, the proportion of small homes in the primary and secondary markets as a proportion of all non-landed private homes transacted eased from 12 per cent in Jan-Aug 2019 to 10 per cent in Jan-Aug 2020.
Meanwhile, with economic headwinds prompting some companies to cut salaries and trim their headcount, the rental market could take a hit in the near term, which in turn may affect leasing demand for shoebox units. Analysts said small units in well-located projects will remain attractive to selected buyers, such as singles and young couples, given their relative affordability.
Even though interest rates have been slashed, prospective buyers of small units are unlikely to be looking at larger units as affordability remains a key criteria for them, analysts said.
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