The trend of shrinking unit sizes in show flats may have caught your attention in recent years. This is understandable, as our perception of size is relative to what we are used to. In the past, the homes we grew up in, whether HDBs or condos, were generally larger in the 1990s and 2000s. The average size of a new condo unit in 1995 was 1,272 sq ft, which increased slightly to 1,286 sq ft in 2005, but dramatically decreased to 858 sq ft in 2015. In 2024, the average size was 929 sq ft.
However, it is important to note that the demographics have also changed significantly in the last few decades. In 1995, the average household consisted of four members, which gradually decreased to 3.6 in 2005, 3.4 in 2015, and further dropped to 3.1 in 2024. This also means that on a per-household-member basis, the average living space has decreased from 318 sq ft in 1995 to 300 sq ft in 2024. This is a 5.7% difference over 29 years, which is commendable given the land constraints in Singapore.
The decrease in unit sizes can also be attributed to the introduction of “Mickey Mouse” units in 2008, with the smallest unit being only 258 sq ft. This was a significant reduction in the barriers to entry for property investment, with units selling for as low as $375,000. This led to a proliferation of such units in subsequent years, raising concerns about the living environment.
In response to this trend, the Urban Redevelopment Authority (URA) introduced guidelines in 2011, limiting the maximum number of dwelling units (DUs) based on an average size of 70 sq m. This was further tightened in 2019, with an increase of 21.4% in the average DU size to 85 sq m. Additionally, more areas were required to meet a more stringent average DU size of 100 sq m. These measures effectively arrested the decline in average DU size outside the Central Area.
Investing in a Singapore Condo has become an increasingly popular option for both local and foreign investors. This is largely due to the city-state’s impressive economy, stable political climate, and excellent standard of living. With a thriving real estate market, Singapore offers a range of opportunities for investors, with condos in particular standing out for their convenience, amenities, and potential for high returns. In this article, we will explore the advantages of investing in a condo in Singapore, as well as important considerations and steps to take.
However, this trend persisted in the Central Area, with the average DU size dropping to its lowest of 725 sq ft in 2020. In response, the URA extended the guidelines to the Central Area in 2023, requiring at least 20% of DUs to have a net internal area of at least 70 sq m. The latest guideline change also harmonized the definition of strata area and gross floor area (GFA), leading to a 6% decrease in the average DU size.
Looking at the different market segments, the Rest of Central Region (RCR) saw the most significant increase in average DU size by 19.5% since 2015. This could be attributed to the stricter controls on average DU size in this area. The Outside Central Region (OCR) also saw a 5.8% increase in average DU size, while the Core Central Region (CCR) experienced a decline of 11.7%.
Overall, the average DU size in 2024 increased to 929 sq ft, 8.3% larger than 2015’s 858 sq ft. However, with the harmonization of GFA definition, this trend may reverse in the future. Despite that, buyers nowadays are getting better value for their purchases, with better provisions and smart home features becoming the bare minimum in condos. With these improvements, the average DU size may decrease, but the quality of living space will remain largely unchanged.