Why Condo Sizes in Singapore Have Shrunk Over the Past 15 Years
Over the past 15 years, condo sizes in Singapore have steadily decreased, with developers focusing on smaller, more affordable units to meet changing market demands. This trend has been driven by a combination of property cooling measures, rising prices, and shifting buyer preferences. In this article, we’ll explore why condo sizes have shrunk, how this impacts buyers, and what the future holds for Singapore’s real estate market.
The Trend of Shrinking Condo Sizes
According to data from Cushman & Wakefield, the median size of new non-landed condos in Singapore has dropped by 10.6% since 2010, from 1,012 sq ft to 904 sq ft in 2024. This trend is most pronounced in prime districts, where median unit sizes have decreased by 20.6%.
Smaller units have become a strategic response by developers to keep prices manageable amid rising property costs. For example, private residential property prices surged by 76.9% between 2010 and 2024, pushing developers to create “bite-sized” units that appeal to budget-conscious buyers.
Why Are Condos Getting Smaller?
Several factors have contributed to the shrinking size of condos in Singapore:
- Property Cooling Measures
Government interventions, such as loan curbs and additional buyer’s stamp duty (ABSD), have made larger units less affordable. Developers have responded by offering smaller units to keep prices within reach. - Changing Demographics
With more singles and smaller families entering the market, demand for compact, functional living spaces has grown. - Investment Appeal
Smaller units are often more attractive to investors, as they are easier to rent out and require lower upfront costs.
Impact on Buyers and Homeowners
For buyers like Jane Seet, a 39-year-old event organizer, smaller condos present both opportunities and challenges. Ms. Seet purchased a 678 sq ft two-bedder in Emerald of Katong for $1.84 million but has no plans to live in it due to its size. Instead, she intends to either sell or rent the unit once it’s completed.
While smaller units are more affordable, they may not meet the needs of families or those seeking spacious living areas. However, developers have adapted by designing flexible layouts that maximize usable space. For example, kitchens and dining areas are now often designed for interchangeable use, allowing homeowners to customize their living spaces.
Government Measures to Regulate Unit Sizes
To ensure that private homes remain liveable, the Urban Redevelopment Authority (URA) has introduced several measures:
- Maximum Unit Caps
In 2012 and 2019, the URA set limits on the number of units in a development to prevent excessively small homes. - Balcony Size Restrictions
Balcony bonuses were reduced from 10% to 7% of gross floor area (GFA), and balconies cannot exceed 15% of a unit’s net internal area. - Harmonized Floor Area Definitions
Since June 2023, all strata areas must be computed as GFA, ensuring that developers prioritize liveable space over non-essential features like oversized air-con ledges. One example of harmonized floor area projects are River Green, One Marina Gardens and Parktown Residence.
These measures aim to strike a balance between developers’ profitability and homeowners’ need for functional, comfortable living spaces.
The Future of Condo Sizes in Singapore
While smaller units are likely to remain popular among investors and singles, there is growing demand for larger homes among families and owner-occupiers. Analysts predict that developers will continue to diversify their offerings to cater to different buyer segments.
As Edwin Loo, a real estate consultant and former URA urban planning lead, notes, “Just because units are getting smaller doesn’t mean that liveability is compromised.” The key lies in maximizing net internal area and designing spaces that are both functional and adaptable.
What Does This Mean for Homebuyers?
If you’re in the market for a condo, here are a few tips to consider:
- Assess Your Needs
Determine whether a smaller unit meets your lifestyle requirements or if you need more space for a growing family. - Explore Flexible Layouts
Look for units with adaptable designs that allow you to maximize usable space. - Consider Resale Value
Smaller units may be easier to rent out, but larger units could offer better long-term value, especially in family-friendly neighborhoods.
Ready to find your dream home in Singapore? Whether you’re looking for a compact condo or a spacious family home, I’m here to help. Contact me today to explore the best properties in your preferred neighborhood!
