Singapore Condo Sizes Shrink: Trends, Prices & Future Outlook

For example, in 2010, a typical three-bedroom condominium unit in suburban areas like Pasir Ris or Jurong measured around 1,200 to 1,300 square feet. By 2020, similar units had shrunk to around 900 to 1,000 square feet, with some even dipping below 850 square feet. Developers justified these reductions by emphasizing efficient layouts, open-concept designs, and multifunctional spaces. However, critics argue that smaller units compromise the quality of life, especially for families who require more space for work, leisure, and storage.

Despite these regulations, developers found ways to navigate the restrictions by introducing more compact layouts, increasing the proportion of one- and two-bedroom units in projects, and maximizing per-square-foot pricing. This is evident in projects like The M by Wing Tai Holdings, launched in 2020, where nearly 70% of the 522 units were one- and two-bedroom apartments averaging 409 to 764 square feet. The overwhelming demand for such units, which saw more than 70% sold on launch weekend, suggests that buyers are prioritizing affordability and location over spaciousness.

At the same time, the rise of remote work and flexible working arrangements has influenced homebuying preferences. While some buyers now prioritize larger homes to accommodate home offices, others, particularly younger professionals and expatriates, still prefer compact units in prime locations close to transport hubs, business districts, and lifestyle amenities. This trend is evident in projects like Emerald of Katong, launched in November 2024, which attracted over 10,000 visitors during its preview weekend despite featuring relatively compact unit sizes. A two-bedroom unit (678 square feet) priced at $1.84 million reflects the premium buyers are willing to pay for well-located properties, even if the living space is modest.

Moreover, the per-square-foot price of these smaller units tends to be significantly higher than that of larger homes. For instance, the average price per square foot for new mass-market condos exceeded $2,000 in 2023, compared to $1,500 in 2018. This means that while buyers are paying less in absolute terms, they are getting much less space for their money. Investors should also consider that while smaller units are easier to rent out due to their lower overall prices, their capital appreciation potential may be limited compared to larger units that appeal to families and long-term homeowners.

Developers, on the other hand, may need to focus on innovation in interior design and communal spaces to enhance the livability of compact units. Features such as convertible furniture, smart storage solutions, and co-living facilities could help mitigate space constraints. Additionally, future urban planning policies may encourage a shift towards building more mixed-use developments with better integration of work, leisure, and residential spaces.

​In my opinion, while smaller condominium units serve an important role in maintaining housing accessibility, the market should be cautious about excessive downsizing. Homebuyers, particularly young families, need homes that can accommodate their evolving needs over time. If the trend of shrinking unit sizes continues unchecked, Singapore risks creating a housing landscape where space is increasingly viewed as a luxury rather than a necessity. Moving forward, both policymakers and developers should focus on fostering a property market that prioritizes quality, liveability, and sustainable growth.