Are Home Sizes Singapore Shrinking
If you have visited a show flat in recent years, you may have noticed that the unit sizes seem to have gotten smaller. This is not surprising, as our perception of size is relative to what we are familiar with.
The homes we grew up in, whether HDBs or condos, were generally larger in the 1990s and 2000s. In 1995, the average size of a new condo was 1,272 square feet (sq ft), which increased to 1,286 sq ft in 2005. However, in 2015, the average size dropped to 858 sq ft and further decreased to 929 sq ft in 2024.
But it’s important to note that the demographic makeup has also changed significantly over the years. In 1995, the average household size was four, but this decreased to 3.6 in 2005, 3.4 in 2015, and 3.1 in 2024.
On a per-household-member basis, the average space in 1995 was 318 sq ft, which increased to 357 sq ft in 2005. A decade later, it dropped to 252 sq ft in 2015 but 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%. This is an impressive feat, considering the limited land space in Singapore. In fact, compared to 2015, the average size in 2024 had increased by 19%. This would not have been possible without the help of the government’s intervention.
In 2008, several condo projects in the Rest of Central Region (RCR) introduced “Mickey Mouse” units, with the smallest unit being only 24 sq m (258 sq ft). This was equivalent to two parking spaces and significantly lowered the barrier to entry for property investment with prices starting from as low as $375,000. These units were incredibly popular, leading to an increase in the number of “Mickey Mouse” units in the following years.
There were concerns that this trend would compromise the living environment’s quality, prompting the Urban Redevelopment Authority (URA) to issue guidelines on the maximum allowed number of dwelling units (DUs) in 2011. Developers were required to use an average size of 70 sq m for projects outside the Central Area, with stricter requirements of 100 sq m for areas like Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos. This new ruling took effect in January 2012.
Despite this, the average size of DUs continued to decrease over the next few years. This resulted in an increase in the number of DUs, putting a strain on infrastructure, especially in areas with limited road capacity. In response, the URA tightened the guidelines in January 2019, resulting in a 21.4% increase in the average DU size outside the Central Area to 85 sq m.
They also added more areas, including Marine Parade, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How San, Shelford, and Loyang, to the list of locations required to meet the stricter 100 sq m average DU size. These measures effectively halted the decline in average DU size outside the Central Area, with the average size reaching 935 sq ft in 2024, an 18.8% increase from 2019’s 787 sq ft.
However, the Central Area continued to see a decrease in average DU size with the introduction of smaller units. To rectify this, the URA extended the guidelines to the Central Area in January 2023, requiring developments to have at least 20% of their DUs with a net internal area of at least 70 sq m.
In June 2023, the URA also harmonized the definition of strata area and gross floor area (GFA). This means that areas such as air-conditioning ledges will now be counted as part of the strata area if they are exclusive to a unit. As a result, many developers have chosen to omit these ledges, causing the average size of DUs to decrease by 6%.
When looking at the different market segments, the RCR saw the most significant increase of 19.5% in average size since 2015 to 944 sq ft. This is likely due to the stricter control of 100 sq m on the average dwelling unit size, which mainly affects the RCR. In comparison, the average DU size in the OCR improved by 5.8% to 898 sq ft, while the CCR saw a decrease of 11.7% to 1,092 sq ft.
It may take some time before the effects of the guidelines in the Central Area are felt, but it is unlikely that the average DU size will return to 2015 levels. Additionally, with the majority of buyers in the CCR being Singaporeans (due to cooling measures on foreigners), developers have had to reconfigure unit designs to avoid unsold units and the Additional Buyer’s Stamp Duty. As such, buyers are now getting better value for their money, with the average DU size increasing to 929 sq ft in 2024, an 8.3% increase from 2015’s 858 sq ft.
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Overall, the URA’s intervention has led to a positive outcome, with buyers receiving better value for their purchases compared to a decade ago. Lee Sze Teck, the senior director of data analytics at Huttons Asia, believes that the harmonization of GFA definition will cause the average DU size to trend downwards. However, with smart home features and high-end appliances becoming standard, buyers can still expect to receive quality units with a similar strata area to pre-harmonization projects.