Are shoebox units in Central Singapore good investments for capital gains?

Most CCR shoebox units have underperformed in capital gains, with average resale gains of only 1.5% over 6.2 years, and some even experienced losses. Only a few projects saw annualized gains of around 2.5%, making them less attractive for capital appreciation.

How does the Additional Buyer’s Stamp Duty (ABSD) affect returns on CCR shoebox investments?

ABSD can significantly reduce returns, sometimes wiping out gains entirely. For example, with ABSD, profits may be as low as $27,336 over six years, whereas avoiding ABSD through specific structuring can improve profit to about $149,460, assuming a 2.5% annual appreciation.

What are the rental yields like for CCR shoebox units in Singapore?

The average gross rental yield for CCR shoebox units is around 4.4%, which is higher than larger family condos. However, rental income may not be enough to justify the investment once costs like stamp duties, interest, and maintenance are considered.

Is investing in CCR shoebox units a low-risk option?

No, CCR shoebox units are not considered low-risk. They face challenges such as limited resale gains, high initial costs, and difficulties in managing tenants, making them less suitable for inexperienced investors.

Can CCR shoebox units appreciate enough to make them worthwhile investments?

While some CCR shoebox units have seen good resale returns, the average appreciation rate is modest at around 1.5%. Achieving higher appreciation rates (e.g., 2.5%) could improve returns, but overall, they may not provide significant capital gains compared to other assets.

We Analysed 8 Years Of 1-Bedroom Condo Data In Central Singapore: Here’s What Investors Should Know

Ryan J. Ong

April 22, 2025

We Analysed 8 Years Of 1 Bedroom Condo Data In Central Singapore Here’s What Investors Should Know

In this Stacked Pro breakdown:

We uncover why most CCR shoebox units are underperforming in capital gains—even after holding periods of over eight years.
See how ABSD can completely wipe out any meaningful returns, unless you structure your investment with care.
Discover the few CCR projects where investors saw 2.5 per cent annualised gains—and why these are the rare exceptions.

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The shoebox craze ended many years ago, but elements of it still linger. One of the common sayings from that period – that “shoeboxes in the CCR are good investments” – still lingers.

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Ryan J. Ong

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan's expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938's Open House programme underscores his commitment to providing valuable insights into the property market.

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