Singapore Government to Impose Caps on Shoebox Units
Yesterday, URA announced that the total number of dwelling units that can be built on a development site for non-landed private residential developments outside the Central Area will be capped. The new ruling essentially prevents developers from allocating a huge number of shoebox units to a particular project.
If they do that, they will hit the cap and will be unable to maximize the number of units for that development. The new ruling takes effect from 4 November 2012.
It remains to be seen whether this measure will actually dampen the demand for shoebox units. After all, this is a move that will reduce the supply of shoebox units.
For more information, you can read the press release from URA: