I refer to last Sunday’s editorial, ‘Tiny flats a good buy?’
The main reason such private shoebox units have taken off is that many singles who want to live on their own are unable to afford resale HDB flats because of the high cash over valuation (COV) amounts which sellers demand.
Singles who generally have savings of between $20,000 and $30,000 will thus opt for a private shoebox apartment because that sum can cover around 5 per cent of the purchase price.
Going for a resale three-room HDB flat, for instance, would require one to set aside some $30,000 to $50,000 for renovations.
Buying a new private unit would mean less hassle with, and expense on, renovations as almost all fixtures are provided.
One may just need to spend on some simple electrical works or decor for a new ‘mickey mouse’ studio.
Single Singaporeans also compete with permanent residents for resale HDB flats. The demand for such flats outstrips their supply, thus pushing up their prices even more.
I live with my parents in the Bedok Reservoir area. Finding a resale HDB flat that is within my means is not a problem, but those available would likely be located much farther away – such as in Jurong West or Woodlands.
Considering the heavy first-time cash outlay for a resale HDB flat and an undesirable location, I would rather get a private shoebox apartment, where I would be at least near my parents and have my own space as well.
Tan Chun Meng
Source: Sunday Times, 15 Nov 2009
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