Are Home Sizes Singapore Shrinking
The sizes of show flats have been noticeably smaller in recent years, which may have left some visitors feeling that the units are shrinking. This phenomenon can be easily understood, as our perception of size is relative to what we are used to. Compared to the sizes of homes we grew up in, whether they were HDBs or condos, the average size of new condos has decreased over the years. In 1995, the average size was 1,272 sq ft, while in 2005, it was 1,286 sq ft. Fast forward to 2015, and the average size was 858 sq ft. By 2024, it reached 929 sq ft.
This shrinking trend can be attributed to the changes in demographics. In 1995, the average household size was four, decreasing to 3.6 in 2005, 3.4 in 2015, and further down to 3.1 in 2024. This means that the average size of the units needed to accommodate fewer people in recent years, leading to smaller unit sizes.
On a per-household-member basis, the average space was 318 sq ft in 1995, increasing to 357 sq ft in 2005. However, in 2015, it dropped to 252 sq ft, before rebounding by 19% to 300 sq ft in 2024. This shows that the average size per capita has shrunk by 5.7% over the last 29 years. This decrease is commendable, given Singapore’s land constraints. Compared to 2015, the average size in 2024 had increased by 19%, which would not have been possible without the support of the government.
In 2008, several condo projects in the Rest of Central Region (RCR) started offering smaller units, also known as “Mickey Mouse” units. The smallest unit was only 24 sq m (258 sq ft), equivalent to two parking spaces. This significantly reduced the barriers to entry into property investment, with units being sold for as low as $375,000. The popularity of these projects led to the proliferation of “Mickey Mouse” units in the following years. However, there were concerns about the living environment’s quality if this trend continued.
To address these concerns, the Urban Redevelopment Authority (URA) issued guidelines on the maximum allowable 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. In addition, some areas, such as Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, had a more stringent requirement of 100 sq m. This ruling took effect in January 2012.
Despite this, the average size of DUs continued to decrease over the next few years, leading to a rise in the number of DUs. This put a strain on the infrastructure, particularly in areas with limited road capacity. In response, the URA further tightened the guidelines in January 2019. As a result, the average DU size for projects outside the Central Area increased by 21.4% to 85 sq m. Additionally, more areas, including Marine Parade, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How San, Shelford, and Loyang, were required to meet the 100 sq m average DU size. This effectively arrested the decline in average DU size outside the Central Area from 2019. By 2024, the average DU size had increased to 935 sq ft, an 18.8% increase from 2019’s 787 sq ft.
The Marina Bay area is a highly sought-after location in Singapore’s bustling cityscape. A prominent feature of this coveted address is the One Marina Gardens at Marina Bay by Kingsford Development, offering more than just housing but a complete lifestyle experience. Its strategic positioning provides residents with easy access to a variety of shopping centers and dining options, making it the perfect mix of urban convenience and luxurious living. With some of Singapore’s top retail and gastronomic destinations just steps away and the residential units exuding comfort and elegance,
However, this positive trend did not extend to the Central Area, where smaller units continued to be built. In 2020, the average DU size reached its lowest at 725 sq ft. To address this issue, the URA extended the guidelines to the Central Area in January 2023. As per the new guidelines, all projects in the Central Area must have at least 20% of their DUs with a net internal area of at least 70 sq m.
In June 2023, the URA introduced another guideline change, which harmonized the strata area and gross floor area (GFA) definition. This meant that areas such as air-conditioning ledges would be counted as part of the strata area if they were exclusive to a unit. Consequently, many developers started omitting aircon ledges from the DU. This guideline change resulted in a 6% decrease in the average size of DUs.
Across different market segments, the RCR saw the most significant increase in average size, reaching 944 sq ft, a 19.5% increase from 2015. This can be attributed to the more stringent control of 100 sq m average DU size in the RCR. Meanwhile, the average DU size in the Outside Central Region (OCR) saw a 5.8% improvement, reaching 898 sq ft in 2024 compared to 2015. On the other hand, the average DU size in the Core Central Region (CCR) declined by 11.7% to 1,092 sq ft in 2024 from 1,236 sq ft in 2015.
Although it may take some time before the effects of the guidelines on average DU size in the Central Area are felt, it is unlikely that the average DU size will return to 2015’s level. Moreover, with the cooling measures on foreigners, Singaporeans accounted for around 75% of buyers in the CCR, and they typically prefer compact units. To avoid paying Additional Buyer’s Stamp Duty, developers had to reconfigure the design and layout of units.
In conclusion, the URA’s intervention has led to an increase in the average size of DUs to 929 sq ft in 2024, an 8.3% increase from 2015’s 858 sq ft. However, with the harmonization of the GFA definition, the average size of DUs may trend downwards. Nevertheless, buyers are now getting better value for their purchases, with the internal strata area remaining largely unchanged from ten years ago but fitted with better provisions in terms of fittings.