Recently, there were many news articles about successful launches of small units. It does seem that these small units are becoming very popular again, despite the current overall slowdown in the property market. Some photos showed people sleeping on the carpet since they arrived early in the morning to secure a spot to get an opportunity to buy. Some news reported that nearly all units offered were taken up. I think small units are worth buying if we are clear that this is by far a better choice than to rent and own nothing, as a single. Some Facebook comments said that the buyers were only given three minutes to make their choice or they will lose the chance. How true? I have no idea but let me share some thoughts about small units and what it can do and most probably cannot do.
Small units can fit you. Yes, you, as a single. Perhaps it can also fit a couple but that’s about it. Please do not think about a family squeezing into it or since you are not cooking anyway, the small unit should be just fine even for a family with one kid.
There’s a limit to its price upside potential. Yes, it’s considered affordable especially since it’s only around RM300,000. If you think it may go up to RM500,000 please think again. Unless the current prices for all the secondary units shoot up, these small units is not going to reach RM500,000 easily.
Easy to sell, because it’s cheap. At the entry price, it’s cheap. When it’s time to sell, not many are willing to sell at just a slight premium on top of the price they bought. Well, take note that there are thousands and thousands of these units. As you know, instead of 1,000 sq ft units, now two units of 1,000 sq ft units might easily be 5 units of these small units!
It’s the trend of future. In Hong Kong, this is already a trend. I have asked many Hong Kong friends, NONE of them likes small units. They were buying them because of the exorbitant prices of bigger units, that’s all. Thus, all the talk about small units being a trend? Call and ask your Hong Kong friends please.
These four reasons are some points to note. Remember, it’s still much better to buy a small unit compared to renting one. It’s also much better to buy a cheaper unit now, even if it’s smaller compared to trying to save and buy a bigger unit later. It’s also better for singles who’s just not going to take care of a bigger unit. A smaller unit means easier maintenance too. It’s also easier on the pocket so that those who could, would save more for other investments which does not have to be property. There are lots of reasons why small units are good. However, if your thought is everything about a BIG IDEA based on a small unit, then please think again. Happy enjoying your home no matter how small or big or even far.
written on 7 Nov 2015
Next suggested article: 550sf vs 1,000sf, choice is clear to me