URA formalizes new rules for shoebox units
Shoebox units are residential units that have the size of 50 sq m or smaller. The reason for its popularity for investment is in its affordability due to its size. However, market experts have warned of its viability for investment purpose. As the number of such units ballooned, URA has stepped in to implement rules for developers when building such units. These are the rules that were formalized:
- Number of shoebox units built outside of central city area is now capped.
- Maximum number of units that can be built is now derived by multiplying the development site area by its allowable plot ratio, and then dividing that by 70 sq m.
- Tighter cap for Telok Kurau, Kovan, Joo Chiat and Jalan Uunos, where allowable average unit size is 100 sq m.