In recent years, if you’ve toured a show flat, you may have noticed that the unit sizes seem to have shrunk. This can be attributed to our perception of size being relative to what we are accustomed to. In the 1990s and 2000s, the homes we grew up in, whether they were HDBs or condos, were generally larger. The average size of a new condo in 1995 was 1,272 sq ft, which slightly increased to 1,286 sq ft in 2005, before plummeting to 858 sq ft in 2015. By 2024, it had risen slightly to 929 sq ft. However, demographic changes have played a significant role in this trend. 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.
The average space per household member has also decreased over the past 29 years. In 1995, it was 318 sq ft, increasing to 357 sq ft in 2005, before dropping to 252 sq ft in 2015. By 2024, it had rebounded by 19% to 300 sq ft. This is a commendable feat, considering Singapore’s limited land resources. In fact, the average size of condos per capita has decreased by 5.7% over the past 29 years. This was made possible with the help of the government, which had a hand in controlling the sizes of units in 2008.
During this time, the Rest of Central Region (RCR) saw the introduction of “Mickey Mouse” units in Singapore, with the smallest unit being 24 sq m (258 sq ft), equivalent to two parking spaces. This significantly reduced the barriers to entry for property investments, with prices as low as $375,000. These projects were in high demand and led to the proliferation of “Mickey Mouse” units in the following years. However, there were concerns about the living environment being compromised due to the small sizes.
To address these concerns, the Urban Redevelopment Authority (URA) stepped in by issuing guidelines on the maximum allowable number of dwelling units (DUs) in 2011. These guidelines required developers to use an average size of 70 sq m for projects outside the Central Area, with some areas having a more stringent requirement of 100 sq m. This ruling took effect in January 2012, but the average DU size continued to decline over the next few years, leading to an increase in the number of DUs and straining the infrastructure in some areas.
In response, the URA further tightened the guidelines in 2019, which saw an increase in the average size of DUs outside the Central Area by 21.4% to 85 sq m. This effectively halted the decline in average DU sizes. However, there was still a concern about the smaller units being built in the Central Area, which goes against the URA’s aim to make it an attractive place to live, work, and play. Hence, in January 2023, the URA extended the guidelines to the Central Area, requiring 20% of DUs in all projects to have a net internal area of at least 70 sq m.
In June 2023, the URA also harmonized the strata area and gross floor area (GFA) definition. This means that areas such as air-conditioning ledges, if exclusive to a unit, will be counted as its strata area. As a result, many developers chose to omit aircon ledges in DUs, leading to a decrease in the average size of DUs by 6%.
When considering real estate investments, location plays a crucial role, and this is even more evident in Singapore. Condominiums located in central areas or in close proximity to important amenities like schools, shopping centers, and public transport hubs tend to appreciate in value significantly. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown growth in property values over time. In addition, the accessibility to prestigious schools and educational institutions in these areas makes condos an attractive investment for families, further increasing their potential for growth. With these desirable locations, it’s no surprise that investing in a condominium in Singapore is a wise decision for any investor. Condo
Looking at the different market segments, the RCR saw the most significant increase in average size, at 19.5%, likely due to the more stringent control of 100 sq m on the average DU size. The Outside Central Region (OCR) also saw an improvement by 5.8%, while the average DU size in the Core Central Region (CCR) decreased by 11.7%.
Despite the URA’s intervention, the average size of DUs has increased to 929 sq ft in 2024, 8.3% larger than 2015’s 858 sq ft. However, with the harmonization of the GFA definition, the average size of DUs may decrease. Nonetheless, buyers today are getting better value for their purchases compared to 10 years ago, with smart home features becoming the bare minimum in condos and better quality appliances being provided. Lee Sze Teck, senior director of data analytics at Huttons Asia, believes that the average DU size will not go back to 2015’s level, due in part to cooling measures for foreigners, resulting in more local buyers who prefer compact units.