If you’ve recently visited a show flat, you may have noticed that the unit sizes seem to have gotten smaller. This is understandable, as our perception of size is relative to what we’re used to. In the 1990s and 2000s, the sizes of the homes we grew up in – whether HDBs or condos – were larger. However, as demographics have changed, so have the average sizes of new condos.
In 1995, the average size of a new condo was 1,272 sq ft, which increased to 1,286 sq ft in 2005. However, in 2015, the average size dropped to 858 sq ft, and by 2024, it was only 929 sq ft. This decrease can be attributed to the decrease in average household size over the years, from four in 1995 to 3.1 in 2024.
On a per-household-member basis, the average space decreased from 318 sq ft in 1995 to 252 sq ft in 2015. However, it rebounded by 19% to 300 sq ft in 2024. Over the past 29 years, the average size of condos (per capita) has decreased by 5.7%, a commendable achievement given Singapore’s land constraints.
This decrease would not have been possible without the help of the government’s “invisible hand.” In 2008, a number of condo projects in the Rest of Central Region (RCR) introduced “Mickey Mouse” units – the smallest being 24 sq m (258 sq ft), equivalent to two parking spaces. This lowered the barriers to property investment, and these projects became popular, leading to the proliferation of such units in the following years.
However, there were concerns that this trend would compromise the quality of living. To address this, the Urban Redevelopment Authority (URA) issued guidelines in 2011, which required developers to use an average size of 70 sq m for projects outside the Central Area, with stricter requirements of 100 sq m in certain areas. This guideline took effect in 2012.
Despite this, the average unit size continued to decrease over the next few years. To address this, the URA tightened the guidelines in 2019, resulting in an increase in average unit size outside the Central Area by 21.4%. However, in the Central Area, the average unit size continued to decrease, reaching its lowest point of 725 sq ft in 2020. To address this, the URA extended the guidelines to the Central Area in 2023, requiring that 20% of units have a net internal area of at least 70 sq m.
When contemplating an investment in a condominium, it is crucial to evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can fluctuate significantly, depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer more attractive rental yields. To obtain a comprehensive understanding of a specific condo’s rental potential, conducting thorough market research and consulting with real estate agents can be beneficial. For information on the latest Singapore projects, visit https://www.homesearch-md.com/.
In June 2023, the URA also harmonised the definition of strata area and gross floor area (GFA), which led to a decrease in the size of units by an average of 6%. However, this change has also resulted in better value for buyers, as smart home features and high-end appliances have become the norm in new condos.
Overall, the average size of units has increased to 929 sq ft in 2024, 8.3% larger than in 2015. However, with the harmonisation of the GFA definition, the trend may shift downwards. Nevertheless, buyers are getting better value for their purchases, with better provisions and fittings compared to 10 years ago.