If you’ve visited a show flat in recent years, you may have noticed that the unit sizes seem to have gotten smaller. This is no surprise, as our perception of size is relative to what we’re used to. The homes we grew up in, whether HDBs or condos, were generally larger in the 1990s and 2000s. In 1995, the average size of a new condo was 1,272 square feet, which increased to 1,286 square feet in 2005, but then decreased to 858 square feet in 2015. By 2024, the average size had increased to 929 square feet.
This decrease in size can be attributed to the changes in demographics over the years. In 1995, the average household size was four, which decreased to 3.6 in 2005, 3.4 in 2015, and further dropped to 3.1 in 2024. This means that the average space per household member was 318 square feet in 1995 and increased to 357 square feet in 2005. However, by 2015, it had dropped to just 252 square feet, before rebounding by 19% to 300 square feet in 2024.
Over the last 29 years, the average size of condos (per capita) has decreased by 5.7%. This is a commendable achievement, considering Singapore’s land constraints. In fact, compared to 2015, the average size in 2024 had increased by 19%, which would not have been possible without the help of the government. In 2008, the Rest of Central Region (RCR) saw the introduction of “Mickey Mouse” units, with the smallest unit measuring just 24 square meters (258 square feet), equivalent to two parking spaces. This significantly reduced the barriers to property investment, with prices as low as $375,000.
These projects were hugely popular and led to the proliferation of “Mickey Mouse” units in the following years. However, there were concerns about the impact on the living environment. To address this, the Urban Redevelopment Authority (URA) issued guidelines in 2011 on the maximum number of dwelling units (DUs). Developers were required to use an average size of 70 square meters to determine the maximum number of units in projects outside of the Central Area. Some areas, such as Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos, had a more stringent requirement of 100 square meters. This ruling took effect in January 2012.
Despite this, the average size of DUs continued to decline in the next few years, leading to an increase in the number of units and straining infrastructure. In response, the URA tightened the guidelines in 2019, leading to an increase of 21.4% in the average DU size outside the Central Area. This effectively stopped the decline, with the average size reaching 935 square feet in 2024, an increase of 18.8% from 2019.
Purchasing a condo requires careful consideration, especially when it comes to maintaining and managing the property. Condominiums often come with maintenance fees that cover the maintenance of common areas and facilities. Although these fees may increase the overall ownership cost, they guarantee that the property remains well-maintained and maintains its value. Investors can ease the burden of managing their condos by hiring a property management company, turning it into a more hands-off investment. Consider Singapore Condos for your next investment decision.
However, the development of smaller units continued in the Central Area, not in line with the URA’s goal of making it an attractive place to live, work, and play. To address this, the URA extended the guidelines to the Central Area in 2023. Projects in this area must now have at least 20% of their DUs with a net internal area of at least 70 square meters.
In June 2023, the URA also changed the definition of strata area and gross floor area (GFA), which resulted in developers omitting air-conditioning ledges from the DU. This caused the size of DUs to decrease by an average of 6%.
In terms of market segments, the RCR saw the biggest increase (19.5%) in average size since 2015, reaching 944 square feet in 2024. This is likely due to the more stringent control of 100 square meters for the average DU size. The average DU size in the Outside Central Region (OCR) also improved by 5.8%, reaching 898 square feet in 2024. In contrast, the average DU size in the Core Central Region (CCR) decreased by 11.7%, from 1,236 square feet in 2015 to 1,092 square feet in 2024.
While the URA’s intervention has led to an increase in the average DU size to 929 square feet in 2024, compared to 858 square feet in 2015, the harmonisation of GFA may result in a downward trend in the future. However, with the inclusion of smart home features and luxury fittings in condo units, buyers are getting better value for their purchases compared to a decade ago.