Large Units Predicted to Curb Singapore Condo Prices

Large Units Predicted to Curb Singapore Condo Prices

Singapore’s New Flat Size Rules: Bigger Blocks, Bigger Paychecks?

Starting January 17, 2019, the Urban Redevelopment Authority (URA) has raised the minimum average size for new private flats outside the central area to 85 square metres. On top of that, nine neighbourhoods will see an even tougher requirement of 100 square metres:

  • Marine Parade
  • Joo Chiat‑Mountbatten
  • Balestier
  • Telok Kurau‑Jalan Eunos
  • Stevens‑Chancery
  • Pasir Panjang
  • Kovan‑How Sun
  • Shelford
  • Loyang

Why the Change?

Developers are worried that the new rules will cut the number of units allowed in a project, potentially stalling en bloc sales and keeping condo prices steady. The URA, however, says the move will:

  • Reduce strain on local infrastructure
  • Keep neighbourhoods livable
  • Encourage a healthier mix of unit sizes to suit a range of buyers

Industry Reaction

Goh Chin Chin, URA’s group director for development control, summed it up: “Smaller units can keep popping up and squeeze our infrastructure. By limiting how many we can build, we maintain quality of life.”

Meanwhile, Christine Li of Cushman & Wakefield warned that the 85‑ and 100‑meter limits could be the “final nail in the coffin” for en bloc deals outside the city centre. She noted that:

  • 85‑meter cap cuts units by ~18%
  • 100‑meter cap cuts units by ~30%
  • Long‑term, fewer “shoebox” units will hit the market

Ong Teck Hui, JLL’s national research director, added that bigger units will naturally lower the price per square foot, allowing developers to keep absolute prices affordable while expanding floor space.

Bottom Line

In short, the URA’s new rules could mean:

  1. Less crowded developments
  2. More spacious homes
  3. Potentially lower per‑square‑metre costs

Homes are getting bigger, and that’s a win for buyers looking to breathe a little easier.

What the New Land‑Sale Rules Mean for the Property Scene

We’ve all been watching the housing market like it’s a season finale on my favorite show. And guess what? The latest policy changes are turning the plot twist around.

According to industry voices, the new guidelines on minimum URA unit size are not a straight‑up “developer apocalypse” – they’re more like a “cautious blurb” that nudges developers to play it safe and submit tighter bids next time. That could mean a gentle crash in land prices, but the arena’s still holding strong thanks to those safety‑net bidders who keep the stage lit.

Why Developers Are Feeling the Pressure

  • Dubbed “cautious bidders” by Cushman’s Ms Li, developers might now uncover higher costs if they can’t rely on those “big‑size advantage” tricks.
  • Surprise from the insideCBRE’s Desmond Sim sums up that the tweaks won’t be a bombshell for state land sales, but will curb the market’s appetite, especially after the July cooling spree.

New GFA Caps That Will Change Your Balcony Game

  • Out of the URA 10 % bonus floor‑area rule for outdoor spaces, we’re sliding down to 7 % from 2024‑01‑17.
  • Static balcony sizes? The total balcony area per unit will now hold fast at 15 % of the internal net area. And developers must shout out screen options right when you seal the deal.
  • For the indulgent interior thrill‑seekers, new indoor recreation spaces (think gym or function rooms) snag a 1 % bonus GFA—up to the limit of the total GFA.

Ms Goh from the URA summed it up better than a Disney finale: these Bonus GFA rules are basically a “build better, balance better” pep talk that marches the industry toward more communal spaces, fresh balcony sizes, and overall better unit variety.

Market Outlook: Boxes, Bigger and Small < 1, 2, 3, 4

What are you after? If your wallet’s looking for a “big‑ish” unit that isn’t urgently needed, the land price dip might just bring the price per square foot down to a nice, affordable number. You might decide: “Sure, why rush? Wait for the knock‑on benefits.”

On the other hand, the smaller units are a different saga. The current supply might shrink once the developers hit the stop sign on the new “per‑size” rule, so it might be smarter to snag them right now before the “on-demand shrink” hits.

Bottom Line

Land bids will be all the more careful. The market might see a minor price pullback—but the developers’ defensive strategies should support the ongoing levels.

Balconies and outdoor spaces are dialing back. More reasonable GFA caps make for a happier household, both in style and size.

Buyers get clarity. Big budgets can feel the ripple see more prices drop. Small budgets may grab that limited future supply while it’s still up.

All of this is blooming from the guidance issued by URA, and let’s not forget that everyday folks have their say—an ever‑flourishing dialogue that shapes the real estate future (yours, mine, and some searching for that perfect balcony).

Stay tuned. Because whether you’re a developer packing a new project, or a homebuyer hunting for your dream tower, these tweaks are set to tickle the housing market into a new rhythm.