Are Home Sizes Singapore Shrinking

If you’ve visited a show flat in recent years, you may have noticed that the unit sizes seem to have shrunk. This is not surprising, as our perception of size is relative to what we are accustomed to. The homes we grew up in, whether they were HDBs or condos, were 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, and then shrunk to 858 square feet in 2015. By 2024, the average size had further decreased to 929 square feet.

However, it’s important to note that our demographics have also changed greatly over the years. In 1995, the average household size was four, which decreased to 3.6 in 2005, and then to 3.4 in 2015. By 2024, it had shrunk even further to 3.1.

When we look at the per capita average size, we can see that it has also decreased over the last 29 years. In 1995, the average space per household member was 318 square feet, which increased to 357 square feet in 2005. However, a decade later, it dropped to 252 square feet in 2015, before rebounding by 19% to 300 square feet in 2024.

Over the 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 wouldn’t have been possible without the help of the government.

In 2008, the introduction of “Mickey Mouse” units in several condo projects in the Rest of Central Region (RCR) helped to reduce the barriers to entry into property investment. These units were as small as 24 square meters (258 square feet), equivalent to two parking spaces. Unsurprisingly, many of these projects saw high demand and sold quickly, leading to a proliferation of “Mickey Mouse” units in subsequent years.

However, concerns were raised about the potential compromise in living quality due to the small size of these units. In response, the Urban Redevelopment Authority (URA) issued guidelines in 2011 on the maximum number of dwelling units (DUs) allowed in a project. This was based on an average size of 70 square meters outside the Central Area, with stricter requirements of 100 square meters in certain areas such as Telok Kurau, Kovan, Joo Chiat, and Jalan Eunos. These guidelines took effect in January 2012.

Despite these efforts, the average DU size continued to decline over the next few years, leading to an increase in the number of DUs. This put a strain on infrastructure, particularly in areas with stretched road capacity. In response, the URA further tightened its guidelines in January 2019, leading to an 21.4% increase in the average DU size for projects outside the Central Area, from 787 square feet to 935 square feet.

However, the Central Area saw a rise in the construction of smaller units, which went against the URA’s aim of making it an attractive place to live, work, and play. In January 2023, the guidelines were extended to the Central Area, requiring all projects to have at least 20% of their DUs with a net internal area of at least 70 square meters.

Another guideline change in June 2023 harmonized the definitions of strata area and gross floor area (GFA), resulting in smaller DUs due to the omission of aircon ledges in the saleable strata area. Overall, the average size of DUs decreased by 6%.

In terms of market segments, the RCR saw the most significant increase in average size, at 19.5%, reaching 944 square feet in 2024. This is likely due to the more stringent control on average DU size in the RCR. On the other hand, the average DU size in the CCR decreased by 11.7% to 1,092 square feet in 2024, compared to 1,236 square feet in 2015.

Looking ahead, with the URA’s intervention, the average size of DUs increased to 929 square feet in 2024, an 8.3% increase from 2015. However, with the harmonization of GFA definition, the average size may trend downwards. Despite this, buyers can expect better value for their purchases, with smart home features and higher-end home appliances becoming the norm in newer condos. Overall, this is a commendable effort by the government to balance the need for more compact units with the desire for a comfortable living environment.