The average size of homes decreased most significantly between 2014 and 2018, as small-format homes became popular with investors.
Condo sizes in Singapore have noticeably shrunk over the past 15 years, particularly in new launches due to multiple market and policy factors like loan curbs, several rounds of property cooling measures and changing demographic needs.
Land scarcity, inflation, higher cost of construction, foreign interest and high demand for new launches contributed significantly to rising per square foot (psf) property prices in Singapore. Therefore in order for developers to keep the absolute price quantums at levels that buyers could stomach, developers have to introduce smaller and smaller units, as private residential property prices surged 76.9 per cent cumulatively from 2010 to 2024.
Across Singapore, the median size of non-landed new condos has dropped 10.6 per cent to 904 sq ft in 2024 from 1,012 sq ft in 2010, according to Cushman & Wakefield, which collated data for The Straits Times based on the median size of new home transactions in the past 15 years. The median floor areas of new condos in the prime district outpaced that in the suburban and city fringe sub-markets. The median floor areas of new prime condos dropped 20.6 per cent to 829 sq ft in 2024 from 1,044 sq ft in 2010. In comparison, the median floor areas of new suburban condos shed 13.4 per cent to 904 sq ft from 1,044 sq ft, while new city fringe condos saw a 4.5 per cent drop in median unit sizes to 904 sq ft from 947 sq ft.
Below is a breakdown to illustrate the shift:
Developers has to explore efficient layouts in newer condo floorplans by designing interiors to maximise usable space, ensuring that even compact units feel functional, livable, and efficient. The space reductions were mostly in kitchen, living and dining areas, which are increasingly designed for interchangeable use. Even though some developments have smaller kitchens, living and dining areas, their layout is designed to overlap, allowing for flexible and interchangeable use. For instance, the kitchen space can be converted into dining space, should they require more space for hosting.
On 1 June 2023, in an effort to ensure that private home space remain liveable, the government's rules on the harmonisation of floor-area definitions took effect, thereby requiring all strata areas to be computed as gross floor area (GFA) causing developer to build smaller air-con ledges and more liveable space for home owners. Previously, elements such as private air-con ledges were excluded from the GFA computation, meaning they did not count towards the maximum allowable floor area of a condo project if they fulfilled certain requirements, and would therefore count as “free area” for developers.
For example, a 1,000 sq ft unit with oversized balconies, multiple bay windows and an oversized air-con ledge will most likely feel less spacious and functional compared with a 900 sq ft unit designed to maximise net internal area. Therefore, even though new condo units are getting smaller doesn’t mean that liveability is compromised as we need to distinguish between the strata or saleable area as shown on the plan, and liveable space, or the net internal area of the unit.
To ensure that private residential units do not get unreasonably small, the Urban Redevelopment Authority (URA) from 2012 and 2019 introduced guidelines to set a maximum number of units in a non-landed residential project to moderate the percentage of the smallest and largest units in proportion to the total number of units in a project. In 2019, the authorities reduced developers’ balcony bonus gross floor area incentives from 10 per cent to 7 per cent, and mandated that balconies could not exceed 15 per cent of the net internal area of units – a measure aimed at maximising liveable space in new units. The net internal area refers to the net living space of a unit, which excludes voids, balconies, air-conditioner ledges and other external areas.
For all new projects in the central area, URA also stipulated that from Jan 18, 2023, the developments must ensure that at least 20 per cent of dwelling units have a net internal area of at least 70 sq m. This size is considered “reasonable” for small families, taking into account the tighter space constraints of the central area.
The drop in the median floor areas for new executive condominiums is less pronounced compared with that of new condos because most exec condos are purchased by owner-occupiers and families requiring larger living spaces, rather than for investment purposes. New exec condo unit sizes fell 8.1 per cent to 980 sq ft in 2024 from 1,066 sq ft in 2010, and were down 2.2 per cent from 1,001 sq ft in 2023.
"While condo sizes have shrunk, clever design makes modern units surprisingly functional. But for those who prefer larger spaces, resale condos from the 90s or early 2000s may still be a better fit." said associate Group Director of Propnex Realty, Kiwi Lim.
Source: The Straits Times © SPH Media Limited.
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