Smaller HDB flats see lower demand

While private property’s "shoebox" units were snapped up in 2009, smaller units have lost its' appeal with buyers of new HDB flats.

In the balloting exercise last month for flats in Bukit Panjang, Dawson and Sembawang, the tide of applications for two-room flats was scarcely half of the number of available units.

In that similar exercise, the applications for three-room flats only faintly exceeded the available supply. Only in Queenstown, the number of applications was more than three times the number of available flats.

On the contrary, the demand for flats with four and five bedrooms exceeded supply by six to 12 times.

The demand for smaller units has fallen for all the latest flat launches, from Punggol and Seng Kang to Jurong West. The number of applications received for two-room flats was usually less than half of the number available.

Applications for three-room flats in the latest balloting exercises for ready built flats exceeded supply by around four times. However, this pales in comparison to the demand for flats with four and five rooms, which were more than 10 times over-subscribed.

Shin Min Daily spoke to several real estate experts to explore the reasons behind this trend.

"Most families prefer to have at least three bedrooms, so they will apply for a four-room flat. Even if they have a few children in the future, it won't feel too crowded," said Albert Lu, the managing director of C&H Property.

Another reason was that people today are more upbeat about the economy in the long term, and are more confident that they can pay for their homes.