Over the years, it’s become apparent that show flats have been shrinking in size. This isn’t surprising, as our perception of space is relative to what we’re used to. In the 1990s and 2000s, HDBs and condos were larger in size compared to now. In 1995, the average size of a new condo was 1,272 sq ft. In 2005, it was 1,286 sq ft. And in 2015, it was 858 sq ft. By 2024, it had increased to 929 sq ft. However, the demographic has changed significantly over the years. In 1995, the average household size was four, which decreased to 3.6 in 2005, 3.4 in 2015, and later 3.1 in 2024.
On a per-household-member basis, the average space was 318 sq ft in 1995, and it increased to 357 sq ft in 2005. However, it dropped to 252 sq ft in 2015 and then increased by 19% to 300 sq ft in 2024. This shows that over the past 29 years, the average size of condos per capita has decreased by 5.7%, which is commendable for a country with limited land space. In 2024, the average size had increased by 19% compared to 2015, which is a result of the government’s intervention.
In 2008, a group of condo projects in the Rest of Central Region (RCR) introduced “Mickey Mouse” units in Singapore, with the smallest unit being 24 sq m (258 sq ft). This made it more affordable for people to invest in property, with units selling for as low as $375,000. These projects were popular and led to the emergence of “Mickey Mouse” units in the following years. However, there were concerns about the impact of such small units on the quality of living.
To address this issue, the Urban Redevelopment Authority (URA) released guidelines in 2011 on the maximum number of dwelling units (DUs) in a project. Developers were required to use an average size of 70 sq m to determine the maximum number of DUs in areas outside the Central Area. Some areas, like Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, had a more stringent requirement of 100 sq m. This guideline took effect in 2012.
Despite this, the average size of DUs continued to decline over the years, leading to an increase in the number of DUs. This put a strain on infrastructure, especially in areas with limited road capacity. In response, the URA further tightened the guidelines in 2019, which led to a 21.4% increase in the average size of DUs in areas outside the Central Area. In 2024, the average size had increased to 935 sq ft, an 18.8% increase from 2019.
Investing in a Singapore condo goes beyond just purchasing the property itself. It is important to also consider the maintenance and management aspect of the investment. Typically, condos come with maintenance fees, which cover the upkeep of common areas and facilities.
Some may see these fees as an additional cost, but they are crucial in ensuring that the property is well-maintained and holds its value. This is especially beneficial for investors who are looking for a long-term investment. By keeping the property in good condition, it is more likely to attract tenants or buyers in the future, thereby maintaining its value.
To ease the burden of managing the condo, investors can engage the services of a property management company. This allows them to have a more passive investment as the company takes care of the day-to-day management tasks. This can include handling tenant concerns, maintenance issues, and keeping track of financials.
Having a reliable property management company can give investors peace of mind, knowing that their investment is being well taken care of. It also frees up their time and allows them to focus on other aspects of their investment. Therefore, when considering a Singapore condo as an investment opportunity, it is important to factor in the maintenance and management fees and consider engaging a property management company for a hassle-free investment experience.
To ensure a level playing field, the URA extended the guidelines to the Central Area in 2023. All projects within the Central Area are now required to have at least 20% of their DUs with a minimum net internal area of 70 sq m. The latest change was the harmonization of the strata area and gross floor area (GFA) definition in 2023, where areas like air-conditioning ledges will be counted as part of the strata area if they are exclusive to a unit. As a result, many developers opted to exclude such ledges from the DU, leading to a 6% decrease in the average DU size.
Looking at the different market segments, the RCR saw the most significant increase of 19.5% in average size to 944 sq ft since 2015. This could be due to the more stringent control of 100 sq m in this area. The outside Central Region (OCR) also saw an increase of 5.8%, reaching an average size of 898 sq ft in 2024. In contrast, the average DU size in the Core Central Region (CCR) decreased by 11.7%, from 1,236 sq ft in 2015 to 1,092 sq ft in 2024.
It may take some time before the effects of the URA’s guidelines in the Central Area are felt. However, it’s unlikely that the average DU size will go back to its 2015 level. With Singaporeans making up around 75% of the buyers in the CCR and their preference for compact units, developers have had to reconfigure the design and layout of units to avoid paying Additional Buyer’s Stamp Duty due to unsold units. The intervention by the URA has resulted in an 8.3% increase in the average size of DUs from 2015 to 2024. However, with the harmonization of the GFA definition, the average size of DUs may decrease in the future.
In conclusion, the average size of DUs has increased since the URA’s intervention in 2011, with better provisions such as smart home features and higher-end fittings. This provides better value for buyers compared to 10 years ago.