SHOEBOX APARTMENTS IN SINGAPORE: ROLE OF PLANNING AUTHORITIES AND IMPLICATIONS FOR STAKEHOLDERS

Abstract

Purpose – The main objective of this dissertation is to ascertain the future of shoebox apartments from the developer’s perspective. In light of the challenges in providing a sustainable physical living environment, this paper attempts to discusses the challenges that shoebox units impose and articulates the roles that the developer and the government planning authority plays in the building of a sustainable environment. The paper will also offer an assessment of the revised dwelling unit cap guideline, and offer alternative measures to ameliorate the problems associated with the shoebox phenomenon.

Design/methodology/approach – The research uses research journals, case-studies, planning provisions, and data from property transactions to analyse the effectiveness of the measures taken to address the concerns associated with the oversupply of dwelling units in a planned estate. Surveys with the general public and an interview with a developer were conducted to gain insights on the demand for shoebox apartments.

Findings – The shoebox phenomenon has illustrated the meeting point of these two objectives. It has both provided a solution for minority groups that are unable to purchase public housing due to eligibility issues and a lucrative investment option for developers due to its high per unit pricing.

However, survey results suggest that the purchasers of these units seem to be made up of investors rather than genuine home-occupiers. This may potentially hinder social cohesion as there would be frequent changes in neighbours.

In addition, there is good reason to expect disappointed investors if rental and capital yields are not realized. As the price of a unit is the culmination of economic factors and the individual’s financial capacity, a failure in the assessment of either considerations may lead to a bad investment decision. Since there is no recourse for a bad investment decision, it would be prudent to stop investments before it occurs.

Shoebox apartment have also intensified infrastructural strains, particularly those that have been found in suburban areas. This gives rise to issues on livability, as expressed by the Urban Redevelopment Authority (URA) With the recent guidelines set by the URA) that attempts to limit the number of these units through mandating a maximum number of dwelling units per estate, it is observed that the proportion of shoebox units in a development has reduced. However, this change in proportion could also be attributed to the Additional Buyer Stamp Duty that targets the investors.

Research limitations/implications – While planning provisions aims to protect both the national objectives and the individual’s interest, there are other approaches to managing social cohesion and the property markets. Aside implementing more restrictions on the supply that may result in higher per unit prices, an alternative could be to encourage demand by changing the perspective the public has on tight dwelling spaces.

There has not been a recent published study on the behavioural sciences impacted by limited living space has not yet been published hence, this area can be expounded further to enhance our understanding of the challenges in planning for high-density living.

Originality/value – The analysis of the cases in the context of the planning provision revisions are reflective, and gives insights to students, policy makers and developers, in the landscaping of the built environment. It will help provide insight into appreciating the challenges that a government planning authority undertakes and the limitations that developers creatively work with