When purchasing a condo, it is crucial to take into account the ongoing maintenance and management of the property. These types of properties usually come with maintenance fees, which cover the upkeep of shared spaces and amenities. Although these fees may increase the overall cost of owning a condo, they play a critical role in maintaining the property’s condition and preserving its value. For a more hands-off investment experience, investors have the option of hiring a property management company to handle the day-to-day operations of their condos. Keep in mind to also keep an eye on New Condo Launches for potential investments.
The sizes of show flats may have seemed smaller in recent years, compared to what we were used to. This could be due to our perception of size being relative to our past experiences. Growing up, whether in HDBs or condos, our homes were generally larger in the 1990s and 2000s. For instance, the average size of new condos was 1,272 sq ft in 1995, 1,286 sq ft in 2005, and 858 sq ft in 2015. However, there has been a decrease in the average size over the years, with it increasing to 929 sq ft in 2024.
This decrease in size can also be attributed to the change in demographics. In 1995, the average household size was four, and it decreased to 3.6 in 2005, 3.4 in 2015, and further to 3.1 in 2024. This means that on a per-household-member basis, the average space was 318 sq ft in 1995, and it increased 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.
Over the last 29 years, there has been a decline of 5.7% in the average size of condos per capita. This is commendable, given the constraints of land in Singapore. This decrease would not have been possible without the intervention of the government. In 2008, the Rest of Central Region (RCR) saw the introduction of “Mickey Mouse” units, with the smallest unit being 258 sq ft. This made it easier for people to invest in property, with the cost of entry being as low as $375,000. This led to an increase in the number of “Mickey Mouse” units being built in the following years, sparking concerns about a decline in living standards.
To address this issue, the Urban Redevelopment Authority (URA) issued guidelines in 2011, limiting the number of dwelling units (DUs) in projects outside the Central Area. These developers were required to use an average size of 70 sq m to determine the maximum number of DUs, with four specific areas having a more stringent requirement of 100 sq m. This guideline went into effect in January 2012.
Despite this, there was a continued decline in the average size of DUs in the following years, putting a strain on infrastructure in areas with limited road capacity. To combat this, the URA tightened its guidelines in January 2019, requiring an average DU size of 85 sq m for projects outside the Central Area, with more areas now having a minimum requirement of 100 sq m.
This brought about an increase of 18.8% in the average size of DUs outside the Central Area in 2024, compared to 2019. However, there was a decline in the average size of DUs in the Central Area in 2020, prompting the URA to extend the guidelines to this area in 2023. These guidelines required that 20% of DUs in the Central Area must have a net internal area of at least 70 sq m.
To harmonize the strata area and gross floor area (GFA) definition, the URA made changes in June 2023, where areas like air-conditioning ledges were counted as strata area. In response to this, developers have started omitting aircon ledges in their DUs, leading to a decrease in average DU size by 6%.
In terms of market segments, the average size of DUs in the Rest of Central Region (RCR) saw the most significant increase, reaching 944 sq ft in 2024 from 789 sq ft in 2015, which is likely due to the more stringent control of 100 sq m average DU size in this area. In the Outside Central Region (OCR), the average DU size improved by 5.8%, reaching 898 sq ft in 2024 compared to 2015, while there was a decline of 11.7% in the average DU size in the Core Central Region (CCR) to 1,092 sq ft in 2024 from 1,236 sq ft in 2015.
Overall, the average size of DUs increased by 8.3% in 2024 to 929 sq ft compared to 2015’s 858 sq ft, due to the URA’s intervention. However, with the harmonization of the GFA definition, the average size may trend downwards. On the bright side, buyers can now enjoy better provisions and value for their purchases, with regulations in place to ensure a minimum size for DUs.