If you have toured a show flat in recent years, you may have noticed that the unit sizes have become smaller. This is understandable, as our perception of space is relative to what we are accustomed to. In the 1990s and 2000s, the average size of homes in Singapore, whether HDBs or condos, was larger compared to today’s standards. For instance, in 1995, the average size of a new condo was 1,272 sq ft, which increased to 1,286 sq ft in 2005. However, by 2015, the average size had dropped to 858 sq ft and further decreased to 929 sq ft in 2024.
In the past few decades, there has been a significant change in demographics. In 1995, the average household size was four, which reduced to 3.6 in 2005, 3.4 in 2015, and further shrunk to 3.1 in 2024. As a result, the average space per household member has also decreased from 318 sq ft in 1995 to 357 sq ft in 2005. However, it dropped to 252 sq ft in 2015 and then rebounded by 19% to 300 sq ft in 2024. Overall, this indicates a 5.7% decrease in average condo size per capita over the last 29 years.
This trend of shrinking unit sizes could not have been possible without the intervention of the government. In 2008, the introduction of “Mickey Mouse” units in some condo projects in the Rest of Central Region (RCR) significantly reduced the barriers to entry for property investment. These units, as small as 24 sq m (258 sq ft), were equivalent to two parking spaces and sold for as low as $375,000. The success of these projects led to the proliferation of such units in the following years, raising concerns about the living environment’s quality.
To address this issue, the Urban Redevelopment Authority (URA) issued guidelines in 2011, specifying the maximum allowable number of dwelling units (DUs) in a project. This move was followed by more stringent guidelines in 2019, which helped increase the average DU size outside the Central Area by 21.4% to 85 sq m. Additionally, several areas were required to meet a more stringent average DU size of 100 sq m, including Marine Parade, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How San, Shelford, and Loyang. As a result, the average DU size outside the Central Area increased from 787 sq ft in 2019 to 935 sq ft in 2024, marking an 18.8% increase.
However, the Central Area saw a different trend, with smaller units being built despite the URA’s goal of making it an attractive place to live, work, and play. As a result, the average DU size in the Central Area reached a low of 725 sq ft in 2020. To address this issue, the URA extended the guidelines to the Central Area in 2023, requiring 20% of DUs to have a net internal area of at least 70 sq m.
The latest guideline change, harmonizing the strata area and gross floor area (GFA) definition in 2023, has caused the average DU size to decrease by an average of 6%. This is because developers have started omitting the air-conditioning ledges from the saleable area to avoid counting them as part of the strata area. As a result, the average DU size has increased in RCR (19.5%) and OCR (5.8%) but decreased in CCR (11.7%) since 2015.
The scarcity of land is one of the main driving forces behind the increasing demand for condos in Singapore. As a small island nation experiencing rapid population growth, Singapore is faced with limited land for development. In response, stringent land use policies have been implemented, resulting in a competitive real estate market where property prices continue to rise. For this reason, investing in real estate, particularly in condos, has become an attractive opportunity for potential buyers, with the potential for significant capital appreciation. Moreover, with Singapore Projects constantly on the rise, the demand for condos is expected to continue its upward trend.
Looking ahead, the average DU size is likely to continue decreasing with the harmonization of the GFA definition. However, at the same time, buyers are getting better value for their purchases, as units now come with smart home features and high-end appliances. With these changes, the average DU size has increased to 929 sq ft in 2024, an 8.3% increase from 2015’s 858 sq ft.