Sales of resale homes measuring from 500 to 800 sq ft hit a 10-year high of 1,466 units in 2017.
Sales of small private condos slowly but steadily increased between 2014 and 2017, reported the Business Times, citing newly published research from OrangeTee & Tie.
The study found that sales of apartments measuring from 500 sq ft to 800 sq ft, which is approximately the size of two-bedroom homes, hit a four-year high of 3,443 units in 2017 compared to under 3,000 units in 2014.
However, the rate of increase is slower compared to what was seen in 2008 to 2012, when sales of such units spiked from 710 to 5,833 respectively. Nonetheless, resales of small private condos measuring from 500 to 800 sq ft reached its highest level in 10 years, with 1,466 units changing hands in 2017.
“Small apartments will remain popular among investors and young couples due to their price affordability and potentially attractive yields,” said OrangeTee & Tie’s research head Christine Sun.
On the other hand, sales of new apartments smaller than 500 sq ft hovered slightly over 1,000 units from 2014 to 2017. In comparison, sales of such homes sharply increased from 275 units in 2008 to 2,709 units in 2012, before falling in 2013 due to the introduction of the Total Debt Servicing Ratio (TDSR) framework.
OrangeTee’s research comes as the Urban Redevelopment Authority (URA) increased the average unit size for new non-landed residential projects outside Singapore’s central region from 70 sq m to either 85 sq m (approx. 915 sq ft) or 100 sq m (approx. 1,076 sq ft). The new average size will take effect for development applications submitted starting on 17 January 2019.
As such the property consultancy believes that sales of smaller private condos could rise in future as the supply of homes measuring 800 sq ft will drop due to the new rule.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com