The Space Premium in Singapore Homes: Why Bigger Units Are Gaining Ground
- New private homes are getting smaller, with average new units now under 900 sq ft
- Smaller units sell faster due to lower price entry, but long-term gains tell a different story
- From 2015 to 2025, larger units recorded stronger annual price growth across CCR, RCR, and OCR
- In the Core Central Region, larger units now command a price premium, reversing a decade-old trend
- Data suggests space is becoming a long-term value driver, not just a lifestyle upgrade
In land-scarce Singapore, residential property has always been shaped by location, tenure, and concept. In recent years, another factor has started to carry more weight in pricing and performance: space.
Data from the Urban Redevelopment Authority (URA) between 2015 and November 2025 shows that the average size of new non-landed homes has steadily declined. New private residential units now average under 900 sq ft, while resale homes average about 1,038 sq ft.
This trend reflects developer constraints. Rising construction costs, regulatory tightening, and pressure to keep price entry points palatable have led to smaller unit layouts across new launches.
Why Smaller Units Sell Faster
Smaller units remain popular because they offer a lower absolute price. Buyers often prioritise affordability over liveability, especially when the goal is entry into the private market.
This pattern was clearly seen in two nearby launches in the River Valley and Zion Road area in August 2025.
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River Green offered two-bedroom units from 49 sq m, priced below S$1.5 million
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Promenade Peak offered larger two-bedroom units from 61 sq m, priced from S$1.78 million
Despite similar locations, River Green achieved an 88 percent take-up rate at launch, while Promenade Peak recorded 54 percent. The difference came down to entry price, not location.
But Faster Sales Do Not Always Mean Better Returns
When price performance over time is analysed, a different picture emerges.
Knight Frank’s study of non-landed private homes from 2015 to November 2025 found that larger units delivered stronger long-term price growth across all regions.
Space premium is defined as the difference in price per square foot between larger and smaller units. Over the last decade, that premium has shifted meaningfully.
Core Central Region Price Comparison
| Unit Size | Average Price Trend (2025) | Annual Price Growth (2015–2025) |
|---|---|---|
| 50–70 sq m | Lower psf than larger units | 3.5% per year |
| 90–120 sq m | 3.1% higher psf | 4.2% per year |
Ten years ago, this relationship was reversed. In 2015, larger CCR units were priced 3.7 percent lower than smaller units due to higher total price quantum. By 2025, buyers were willing to pay more per square foot for larger layouts.
RCR and OCR Show the Same Direction
The same trend appears outside the city core.
| Region | Unit Size | Annual Price Growth | Average 2025 Price |
|---|---|---|---|
| RCR | 50–70 sq m | 6.3% | S$2,813 psf |
| RCR | 90–120 sq m | 6.6% | Higher than small units |
| OCR | 50–70 sq m | 6.8% | S$2,326 psf |
| OCR | 90–120 sq m | 7.0% | Higher than small units |
Larger homes consistently outpaced smaller units in price appreciation, even though they were harder to sell initially.
Why Buyers Are Paying More for Space
Several factors explain this shift.
First, the shrinking size of new apartments has made larger units increasingly rare. Scarcity tends to support price resilience.
Second, lifestyle priorities changed after the pandemic. Buyers became more aware of how space affects daily living, work-from-home flexibility, and long-term comfort.
Third, family buyers and owner-occupiers now dominate a larger share of demand, particularly in city-fringe and prime districts.
URA caveat data also shows that in many downtown districts, larger units recorded stronger price growth than smaller ones, even when transaction volumes were lower.
This shift is especially relevant in mature central neighbourhoods, where buyers increasingly compare larger, family-friendly condos in River Valley that offer both daily liveability and long-term price resilience.
Larger Units in Central District Launches
Recent central launches have begun responding to this demand shift by offering larger unit formats.
Projects launched in 2025 with more generous layouts include Aurea in District 7, Upperhouse at Orchard Boulevard in District 10, and The Robertson Opus in District 9. These developments offered two-bedroom units averaging 60 sq m or more, which is increasingly uncommon in prime areas.
In comparison, other launches in the same year offered noticeably smaller layouts despite similar locations.
What This Means for Buyers and Investors
Smaller units remain easier to sell and require less upfront capital. They still make sense for buyers focused on entry price or short-term liquidity.
However, data from the past decade suggests that larger units offer stronger long-term price growth and are more resilient to changing buyer preferences.
In a market where space is becoming harder to find, size is no longer just a lifestyle upgrade. It is increasingly a pricing advantage.
