It was reported yesterday that the all powerful leader of the Ministry of National Development – Khaw Boon Wan announced on his blog about the curbs on shoebox shops. Having written about it on his blog, Minister Khaw - The guidelines will require a minimum average retail unit size and minimum corridor widths for all new developments with retail floor area, National Development Minister Khaw Boon Wan said on his blog on Tuesday
Many developers are guilty of designing and selling shoebox shops some of only a mere 9sqm, so that the low price quantum will make it attractive to investors, who only have to put a 20-30% downpayment on a shop, and then get financing for the rest. This allows the commercial units to sell out fast. Such shops are very popular because of their affordability and being small, the rental doesn’t need to be so high, it will be able to rent fairly quickly if the location is good.
I dare say that the shops in the markets are smaller than 9sqm, so I’m not really sure who should be correcting who now. These shops are so small that they pile up goods along the corridor, hanging stuff from the ceiling, requiring the shop keeper to stoop to go inside the shop to retrieve products. New HDB Shop units in new towns are equivalently small, some just under 400sqft or about 30sqm. Those aren’t that big either.
So I think before we insist that private developers ensure the size of privately sold commercial shop units, please look at what is going on for HDB Shops and the shops in the markets.
Small shop units are now hot, getting much interest for such properties. If you truly wish to know where you can lay your hands on such properties, do contact us here
Developments that have small shoebox retail units are:
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