If you have visited a show flat in the last few years, you may have noticed that the size of units seems to be getting smaller. This is understandable, as our perception of size is relative to what we are used to. In the 1990s and 2000s, the homes we grew up in, whether HDBs or condos, were generally larger. For instance, the average size of a new condo was 1,272 sq ft in 1995, 1,286 sq ft in 2005, and 858 sq ft in 2015. By 2024, the average size had increased slightly to 929 sq ft.
However, it is important to note that demographics have changed significantly over the years. The average household size has decreased from four in 1995 to 3.1 in 2024. This means that on a per-household-member basis, the average space has actually increased from 318 sq ft in 1995 to 300 sq ft in 2024. This trend shows that while the overall size of units may have decreased, individual living spaces have actually become more spacious over time.
Over the last 29 years, the average size of condos (per capita) has decreased by 5.7%. This is a commendable development, considering Singapore’s land constraints. In fact, the average size has increased by 19% since 2015, showing that the government has played a crucial role in managing the issue of shrinking unit sizes.
One significant factor contributing to the decrease in size is the introduction of “Mickey Mouse” units in Singapore in 2008. These units, as small as 24 sq m (258 sq ft), were equivalent to two parking spaces and significantly reduced the barriers to entry for property investments, with prices as low as $375,000. This led to a surge in the number of such units being built, causing concerns about the impact on the living environment.
In 2011, the Urban Redevelopment Authority (URA) stepped in to address this issue by issuing guidelines on the maximum allowable number of dwelling units (DUs). This meant that developers were required to use an average size of 70 sq m for projects outside the Central Area, with four areas having a more stringent requirement of 100 sq m. However, despite these guidelines, the average size of DUs continued to decline over the next few years, leading to strains on infrastructure.
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When purchasing a Condo, one must not overlook the maintenance and management aspect of the property. Condos usually have maintenance fees that encompass the maintenance of shared spaces and amenities. While these fees may increase the overall cost of owning a Condo, they also guarantee that the property stays in excellent condition and maintains its value. Engaging a property management company is an option for investors to handle the daily management of their Condos, making it a more effortless investment Condo.
To address this, the URA further tightened the guidelines in 2019, leading to an increase in the average size outside the Central Area by 18.8% from 787 sq ft in 2019 to 935 sq ft in 2024. This trend was mainly seen in the Rest of Central Region (RCR), where the average size increased by 19.5% to 944 sq ft since 2015.
However, the Central Area saw a different trend, with the average size of DUs decreasing to its lowest of 725 sq ft in 2020. To address this, the URA extended the guidelines to the Central Area in 2023, requiring at least 20% of DUs to have a net internal area of 70 sq m.
Another significant change was the harmonisation of the strata area and gross floor area (GFA) definition in 2023. This meant that areas such as air-conditioning ledges, if exclusive to a unit, would be counted as its strata area. As a result, many developers have chosen to omit these ledges, causing a decrease of an average of 6% in the size of DUs.
However, despite these changes, there has been a notable increase in the average size of DUs since 2015, with the average size reaching 929 sq ft in 2024, 8.3% larger than in 2015. This is mainly due to the better provisions and fittings found in modern condos, such as smart home features and luxury appliances.
Overall, while there has been a decrease in the average size of units over the years, it is important to consider the changing demographics and the efforts of the government to manage the issue. Moreover, with the increase in quality and value, buyers are getting better deals compared to 10 years ago.