The appetite for “Mickey Mouse” homes is growing. In the first nine months of 2009 alone, more than 700 units have changed hands, exceeding even the previous high of 587 transactions in 2007 by 20%. What are “Mickey Mouse” homes?
Mickey Mouse homes refer to mini-apartments with floor areas of below 50 sq m, or 538 sq ft, which with time have further shrunk in size.
Why are they in such hot demand?
“The main draw of “Mickey Mouse” homes lies in their affordability.”
How much do they cost and where can they be found?
“Of late…an increasing number of sales are being concluded at prices ranging from $250,001 to $500,000, in line with the rise in number of smaller-sized units of 300 sq ft to 399 sq ft.”
“Prospective buyers may wish to begin their search in the Rest of Central Region (RCR), which has the highest number of developments with “Mickey Mouse”
homes amongst all sub-markets… Prices typically ranged from $250,001 to $500,000.”
What are the risks and merits of owning such a property?
“…an analysis of individual sub-sale transactions since 1997 shows that these “Mickey Mouse” units can reap pretty handsome short- to mid-term capital gains of above $100,000… However, as with any form of investment, there are risks involved and losses can happen.”
“Although demand prospects look promising, prospective buyers of such “Mickey Mouse” homes should still carry out their due diligence, do their sums and understand the merits and risks involved before committing to a purchase.”
To find out more about Mickey Mouse homes, you may like to read the report "Mickey Mouse Homes in Hot Demand" from Colliers International.
