New Reporter
15-02-23, 08:16
Fret not over that shrinking private home
Feb 14, 2023
PRIVATE homes in Singapore are getting smaller. But, fret not, sound reasons drive shrinking home sizes and smaller spaces need not result in poorer living conditions.
Data collated for The Business Times by PropertyGuru showed the median floor area of three-bedroom condominium units falling over four decades. Based on the year that their Temporary Occupation Permits were obtained, median floor areas have fallen from around 1,700-1,800 square feet (sq ft) in the 1980s, to just below 1,500 sq ft in the 1990s, to around 1,000 sq ft from 2018.
New condominium launches may feature three-bedroom units that are about 900 sq ft and two-bedroom units under 700 sq ft.
Revisions to guidelines
In recent years, the Urban Redevelopment Authority (URA) revised guidelines to limit the excessive development of small homes.
In 2018, URA revised guidelines on non-landed residential developments outside the Central Area. The maximum allowable number of dwelling units is derived from dividing the proposed building gross floor area by 85 square metres (sq m), or about 915 sq ft. Also, 20 per cent or more of a project’s dwelling units should have net internal area (NIA) of at least 100 sq m (about 1,076 sq ft), and at most 20 per cent of the dwelling units can have NIA of less than 50 sq m (about 538 sq ft).
Developers now need to provide for larger homes in non-landed projects in the Central Area. From Jan 18, 2023, a minimum of 20 per cent of dwelling units with NIA of at least 70 sq m (about 753 sq ft) will be required for all new flats, condominiums and residential components of commercial and mixed-use developments in the Central Area. This size is considered reasonable by URA for small families, taking into account the tighter space constraints of the Central Area.
Buyers appear unfazed by shrinking private home sizes. Demand for smaller homes is strong even in the suburbs.
Lentor Modern, located in the Yio Chu Kang Road area, offers one to four-bedroom units starting from 527 sq ft. During the project’s launch weekend in September 2022, all 63 one-bedroom units and 231 two-bedroom units were sold, versus over 73 per cent of the 248 three-bedroom units and over 50 per cent of the 63 four-bedroom units.
In this year’s first new residential launch, Sceneca Residence, located near Tanah Merah MRT station, about 60 per cent of the homes were sold on the first day of the launch on Jan 14. All the one-bedroom and two-bedroom units were sold.
Rationale for small homes
Given the appetite for small-sized homes, perhaps developers should largely be free to build such homes. And developers may be keen to build smaller homes, as such units can at times command higher per sq ft selling prices.
Firstly, households in Singapore are getting smaller as part of societal trends, with the nuclearisation of families and more singles wanting to live alone.
The average size of resident households fell from 3.5 in 2010 to 3.1 in 2022. Over that period, the share of one-person households rose from 12.2 per cent to 15.5 per cent, while that of two-person households rose from 18.8 per cent to 23.7 per cent. In the future, a low birth rate plus a strong desire by many people to live independently may drive growth in the number of small households.
Secondly, developers have become better at building flats with efficient floor plates, which are functional and flexible. Seamlessly integrating balcony space with indoor space enhances the usefulness of the balcony space. Having open-plan kitchens, doing away with bath tubs and having more compact dining areas help save space. Using open-plan designs boosts the brightness and liveability of small units. Add to that, interior designers who help maximise space efficiency and make small spaces feel luxurious.
Thirdly, lifestyles are changing. People may clamour for more space because they spend more time working from home. But the need for space may manifest in singles and young adults wanting to have their own homes instead of living with parents. Also, some older people, who do not live with their grown-up children, may be happy with smaller-sized homes that are easier to maintain.
As electronic gadgets and appliances get more compact, there is less need for space in a home to store bulky items. People can also use self-storage facilities. As some people hardly cook and rely on takeaways or food delivery, a small kitchen may suffice. Some people travel extensively for work or leisure, or spend large amounts of time at cafes, co-working spaces, gyms or park connectors, and hence have little need for a large home.
In the rental market, small units can draw knowledge workers who choose to have a whole flat to themselves rather than share a unit with others, so that they can work from home in peace.
Fourthly, cost considerations matter, especially with the quicker pace of increase in private home prices in 2021 and 2022. Today, a new suburban condominium may cost over S$2,000 per sq ft. Also, buyers have to contend with higher interest rates. Homebuyers may be watching their budgets carefully, as inflation eats into disposable income. And larger homes may have higher annual values and hence draw heftier property taxes.
Moreover, many homebuyers may hope to limit the funds used to finance a home buy, so they have more money in their Central Provident Fund accounts or elsewhere for retirement needs.
https://i.imgur.com/GyutXOe.png
Small does not mean bad
Possibly, shrinking home sizes help the environment, as fewer building materials are used to build homes, and homes take up less space in land-scarce Singapore.
Still, the liveability of homes can get compromised when several people share a small space, with ensuing adverse impact on the mental health of occupants. On the flip side, with scarce resources, maybe small households should be discouraged from occupying large spaces. Should households with two persons or fewer who occupy larger HDB flats or larger private flats or landed homes pay higher taxes?
Arguably, new condominium developments around Orchard Road, for example, should not have largely big units and instead offer a significant number of small units so that there are somewhat more affordable homes in the area.
Giving small-sized homes a prominent place in the private home market can be desirable, as having well-designed compact homes helps keep private homeownership aspirations of young locals within reach. Be imaginative and neat, and a small home can be a good home.
https://www.businesstimes.com.sg/opinion-features/fret-not-over-shrinking-private-home
Feb 14, 2023
PRIVATE homes in Singapore are getting smaller. But, fret not, sound reasons drive shrinking home sizes and smaller spaces need not result in poorer living conditions.
Data collated for The Business Times by PropertyGuru showed the median floor area of three-bedroom condominium units falling over four decades. Based on the year that their Temporary Occupation Permits were obtained, median floor areas have fallen from around 1,700-1,800 square feet (sq ft) in the 1980s, to just below 1,500 sq ft in the 1990s, to around 1,000 sq ft from 2018.
New condominium launches may feature three-bedroom units that are about 900 sq ft and two-bedroom units under 700 sq ft.
Revisions to guidelines
In recent years, the Urban Redevelopment Authority (URA) revised guidelines to limit the excessive development of small homes.
In 2018, URA revised guidelines on non-landed residential developments outside the Central Area. The maximum allowable number of dwelling units is derived from dividing the proposed building gross floor area by 85 square metres (sq m), or about 915 sq ft. Also, 20 per cent or more of a project’s dwelling units should have net internal area (NIA) of at least 100 sq m (about 1,076 sq ft), and at most 20 per cent of the dwelling units can have NIA of less than 50 sq m (about 538 sq ft).
Developers now need to provide for larger homes in non-landed projects in the Central Area. From Jan 18, 2023, a minimum of 20 per cent of dwelling units with NIA of at least 70 sq m (about 753 sq ft) will be required for all new flats, condominiums and residential components of commercial and mixed-use developments in the Central Area. This size is considered reasonable by URA for small families, taking into account the tighter space constraints of the Central Area.
Buyers appear unfazed by shrinking private home sizes. Demand for smaller homes is strong even in the suburbs.
Lentor Modern, located in the Yio Chu Kang Road area, offers one to four-bedroom units starting from 527 sq ft. During the project’s launch weekend in September 2022, all 63 one-bedroom units and 231 two-bedroom units were sold, versus over 73 per cent of the 248 three-bedroom units and over 50 per cent of the 63 four-bedroom units.
In this year’s first new residential launch, Sceneca Residence, located near Tanah Merah MRT station, about 60 per cent of the homes were sold on the first day of the launch on Jan 14. All the one-bedroom and two-bedroom units were sold.
Rationale for small homes
Given the appetite for small-sized homes, perhaps developers should largely be free to build such homes. And developers may be keen to build smaller homes, as such units can at times command higher per sq ft selling prices.
Firstly, households in Singapore are getting smaller as part of societal trends, with the nuclearisation of families and more singles wanting to live alone.
The average size of resident households fell from 3.5 in 2010 to 3.1 in 2022. Over that period, the share of one-person households rose from 12.2 per cent to 15.5 per cent, while that of two-person households rose from 18.8 per cent to 23.7 per cent. In the future, a low birth rate plus a strong desire by many people to live independently may drive growth in the number of small households.
Secondly, developers have become better at building flats with efficient floor plates, which are functional and flexible. Seamlessly integrating balcony space with indoor space enhances the usefulness of the balcony space. Having open-plan kitchens, doing away with bath tubs and having more compact dining areas help save space. Using open-plan designs boosts the brightness and liveability of small units. Add to that, interior designers who help maximise space efficiency and make small spaces feel luxurious.
Thirdly, lifestyles are changing. People may clamour for more space because they spend more time working from home. But the need for space may manifest in singles and young adults wanting to have their own homes instead of living with parents. Also, some older people, who do not live with their grown-up children, may be happy with smaller-sized homes that are easier to maintain.
As electronic gadgets and appliances get more compact, there is less need for space in a home to store bulky items. People can also use self-storage facilities. As some people hardly cook and rely on takeaways or food delivery, a small kitchen may suffice. Some people travel extensively for work or leisure, or spend large amounts of time at cafes, co-working spaces, gyms or park connectors, and hence have little need for a large home.
In the rental market, small units can draw knowledge workers who choose to have a whole flat to themselves rather than share a unit with others, so that they can work from home in peace.
Fourthly, cost considerations matter, especially with the quicker pace of increase in private home prices in 2021 and 2022. Today, a new suburban condominium may cost over S$2,000 per sq ft. Also, buyers have to contend with higher interest rates. Homebuyers may be watching their budgets carefully, as inflation eats into disposable income. And larger homes may have higher annual values and hence draw heftier property taxes.
Moreover, many homebuyers may hope to limit the funds used to finance a home buy, so they have more money in their Central Provident Fund accounts or elsewhere for retirement needs.
https://i.imgur.com/GyutXOe.png
Small does not mean bad
Possibly, shrinking home sizes help the environment, as fewer building materials are used to build homes, and homes take up less space in land-scarce Singapore.
Still, the liveability of homes can get compromised when several people share a small space, with ensuing adverse impact on the mental health of occupants. On the flip side, with scarce resources, maybe small households should be discouraged from occupying large spaces. Should households with two persons or fewer who occupy larger HDB flats or larger private flats or landed homes pay higher taxes?
Arguably, new condominium developments around Orchard Road, for example, should not have largely big units and instead offer a significant number of small units so that there are somewhat more affordable homes in the area.
Giving small-sized homes a prominent place in the private home market can be desirable, as having well-designed compact homes helps keep private homeownership aspirations of young locals within reach. Be imaginative and neat, and a small home can be a good home.
https://www.businesstimes.com.sg/opinion-features/fret-not-over-shrinking-private-home