If you’ve recently visited a show flat, you may have noticed that the unit sizes have been shrinking. This is to be expected as our perception of size is relative to what we are accustomed to. In the 1990s and 2000s, the homes we grew up in, whether HDBs or condos, were generally larger. The average size of a new condo unit 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 to 929 sq ft.
However, during this time, the demographics of Singapore were changing, resulting in smaller household sizes. In 1995, the average household size was four, which decreased to 3.6 in 2005, 3.4 in 2015, and eventually 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, in 2015 it dropped to 252 sq ft and then rebounded by 19% to 300 sq ft in 2024, showing a decline in size over the last 29 years.
This decrease in size is commendable given Singapore’s land constraints. 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), equivalent to two parking spaces. This made it easier for people to enter the property market with a lower investment amount of $375,000.
These projects sold quickly, leading to a rise in the number of “Mickey Mouse” units in the following years. However, this raised concerns about the impact on the quality of living. To address this, the Urban Redevelopment Authority (URA) issued guidelines on the maximum number of dwelling units (DUs) in 2011, which took effect in January 2012.
Developers were required to use an average size of 70 sq m for projects outside the Central Area to determine the maximum number of DUs. Some areas, such as Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, had a more stringent requirement of 100 sq m. This helped to reduce the number of DUs and strain on infrastructure.
However, over the next few years, the average size of DUs continued to decline, reaching a low of 804 sq ft in 2018. To address this, the URA further tightened the guidelines, which took effect in January 2019. The average DU size for projects outside the Central Area increased by 21.4% to 85 sq m. Additionally, more areas were required to meet the more stringent requirement of 100 sq m.
This effectively arrested the decline in average DU size outside the Central Area from 2019. By 2024, the average DU size had reached 935 sq ft, an increase of 18.8% since 2019. In the Central Area, the average DU size reached its lowest point of 725 sq ft in 2020, leading to the URA extending the guidelines to the area in January 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.
Understanding the regulations and limitations surrounding property ownership in Singapore is crucial for foreign investors. Unlike landed properties that have stricter ownership guidelines, foreigners are typically able to purchase condos with fewer restrictions. However, they are still subject to the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property acquisition. Yet, despite this additional expense, the stability and potential for growth in the Singapore real estate market remain enticing for foreign investment. This is why many foreign buyers are turning to Singapore Projects as a lucrative opportunity to invest in this thriving market.
The latest guideline change in June 2023 was the harmonisation of the strata area and gross floor area (GFA) definition. This meant that areas such as air-conditioning ledges, if exclusive to a unit, would now be counted as its strata area. As a result, developers have started omitting aircon ledges in the DU, leading to a decrease in average size by 6%.
The RCR saw a significant increase of 19.5% in average size to 944 sq ft since 2015, due to the stricter control of 100 sq m on the average DU size. The OCR also saw an improvement of 5.8% to 898 sq ft in 2024 compared to 2015. However, the CCR experienced a decline of 11.7%, with the average DU size decreasing to 1,092 sq ft in 2024 from 1,236 sq ft in 2015.
It may take some time before the guidelines on average DU size in the Central Area are felt. However, it is unlikely that the average DU size will go back to 2015’s level, due to Singaporeans making up around 75% of buyers in the CCR, and their preference for compact units. Despite this, buyers are still getting better value for their purchases compared to 10 years ago, due to the inclusion of smart home features and higher-end appliances.