Tiny flats a good buy?

(Abstract from The Straits Times 8th Nov, 2009)

First, there were the 'mickey mouse' apartments of 500 sq ft or smaller. In Suites@Guillemard. for example, there are units as small as 258 sqft, which is the size of 21/2 carpark spaces. Now penthouses in several developments to be launched have shrunk too, to less than 1,000 sqft. In Kembangan Suites, there are shrunken penthouses as small as 635 sq ft, about the size of an average three-room Housing Board flat.

The trend of 'mickey mouse' flats took off last year. Nearly 500 of them have been bought this year, up from 299 last year and 275 in 2007. Driving the sales is affordability. Amid rising prices, a 350 sq ft one-bedder going for less than $400,000 can be alluring.

Industry people are divided over how viable these small flats are. One of them assumed that most buyers are investors. The problem? They may have difficulty leasing them out long-term, so they may have to settle for monthly, weekly or even hourly renting. Some investment! Another property specialist says it is hard to imagine anyone living comfortably in a 300 sq ft apartment, but lifestyles evolve and tiny spaces in the heart of town could appeal to singles.

The Sunday Times is amused by the trend. We hope it is a passing fad. Buyers should not be so desperate to own private property that they will plonk down good money for what is most affordable without regard for acceptable living space. It would be too late to regret their purchase if they discover that the tight squeeze is just unliveable.

Also, why do such buyers not consider HDB flats? They are larger and much cheaper. The landscaped grounds and living environment are comparable to those of a mid-range condominium. If they are singles, which is likely the case, they can buy resale HDB flats. They can easily get a four-room or even five-room unit for $400,000.

Ultimately, it is their decision. Good luck, we say.