Are Home Sizes Singapore Shrinking
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Nestled in the bustling city of Singapore, Temasek Polytechnic stands as a prestigious institution known for its high-quality education and diverse range of diploma courses. With a strong focus on technology, business, and design, this premier polytechnic remains a coveted choice for students seeking a well-rounded education. Located just a stone’s throw away from Parktown Residence Condo, Temasek Polytechnic offers students the opportunity to experience the best of both worlds – a top-notch education and a convenient location.
The trend of shrinking unit sizes in show flats may have caught your attention in recent years. This is not surprising as our perception of size is relative to what we are used to. In the past, the homes we grew up in, be it HDB flats or condominiums, were generally larger. In 1995, the average size of a new condo unit was 1,272 sq ft. It increased slightly to 1,286 sq ft in 2005, but significantly decreased to 858 sq ft in 2015. In 2024, the average size was 929 sq ft.
However, we must consider the changing demographics over the years. In 1995, the average household size was four, which decreased to 3.6 in 2005, 3.4 in 2015, and further to 3.1 in 2024.
On a per-household-member basis, the average space was 318 sq ft in 1995 and increased to 357 sq ft in 2005. However, it dropped to 252 sq ft in 2015 before rebounding by 19% to 300 sq ft in 2024.
Over the past 29 years, there has been a 5.7% decrease in the average size of condos per capita. This is an impressive feat, given the limited land in Singapore. The credit goes to the government’s intervention, which has played a crucial role in this. In 2008, the Rest of Central Region (RCR) saw the launch of several condo projects that introduced “Mickey Mouse” units – the smallest unit measuring just 24 sq m (258 sq ft), equivalent to two parking spaces. This drastically reduced the barrier to property investment, with units selling for as low as $375,000. These projects were highly sought after, leading to a surge in “Mickey Mouse” units in the following years. However, there were concerns about the quality of living in such small units.
To address this issue, the Urban Redevelopment Authority (URA) issued guidelines on the maximum number of dwelling units (DUs) in 2011. Developers were required to use the average size of 70 sq m for projects outside the Central Area to determine the maximum number of DUs. In some areas like Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, the requirement was even more stringent at 100 sq m. This guideline came into effect in 2012.
Despite this, the average size of DUs continued to decline over the years, leading to a strain on infrastructure, particularly in areas with limited road capacity. In 2019, the URA revised the guidelines, which led to an increase in the average DU size by 21.4% to 85 sq m. Moreover, more areas were required to meet the stricter 100 sq m average DU size. This helped to stabilize the decline in average DU size outside the Central Area.
However, smaller units continued to be built in the Central Area, which goes against the URA’s objective of making it an attractive place to live, work, and play. To tackle this issue, the URA extended the guidelines to the Central Area in 2023. All projects within the Central Area must now have at least 20% of their DUs with a net internal area of at least 70 sq m. Additionally, in June 2023, the URA also harmonized the strata area and gross floor area (GFA) definition. This means that areas like air-conditioning ledges, if exclusive to a unit, will now be counted as part of its strata area. As a result, developers have started omitting aircon ledges in DUs, which has led to a 6% decrease in the average size of DUs.
In terms of market segment, the Rest of Central Region (RCR) saw the most significant increase (19.5%) in the average DU size since 2015, probably due to the strict control of 100 sq m on average DU size. The Outside Central Region (OCR) also witnessed a 5.8% increase in the average DU size, while the average DU size declined by 11.7% in the Core Central Region (CCR).
With the URA’s intervention, the average size of DUs increased by 8.3% to 929 sq ft in 2024. However, with the harmonization of the GFA definition, there may be a downward trend in the average DU size. Nevertheless, buyers are now getting better value for their money as developers are providing better fittings and appliances in units within the same strata area as 10 years ago.