Encourage developers to provide larger new condo homes in order to support parenthood
Encourage developers to provide larger new condo homes in order to support parenthood
Although they sell well, small units might not be able to accommodate large families.
September 30, 2024
CONDOsingapore.com
As of noon on September 22, 8@BT in Upper Bukit Timah, the first condominium project to be launched following the Chinese Hungry Ghost Month, had sold 83 units, or 53% of its 158 units, during its launch weekend, at an average selling price of S$2,719 per square foot (psf).
Sales of one-bedroom, two-bedroom, and three-bedroom units were 91%, 60%, and 49%, respectively, at the start of Bukit Sembawang Estates' project, which features units with one, two, three, and four bedrooms in addition to penthouses. One-bedroom apartments are typically 517 square feet (sq ft), while two-bedroom apartments and three-bedroom apartments are typically between 642 and 732 sq ft and 1,001 and 1,238 sq ft, respectively.
Other condo launches also demonstrate how popular smaller units are with purchasers. Two-bedroom apartments were the most popular when Lentor Mansion, which has apartments with two, three, four, and five bedrooms, opened earlier this year; all 214 of them were sold.
Units with one or two bedrooms sold better than those with three or four bedrooms at Kassia's July launch. During its launch weekend, Sora sold 23% of its units as of 6 p.m. on July 7. More than 80% of the one-bedroom units, which also included a study, were quickly occupied.
In new condo developments, might developers be persuaded to provide a proportionately higher number of smaller units? After all, by selling more quickly and bringing in a higher price per square foot, smaller units can make a significant contribution to project returns.
However, the mix of units in condo projects presents challenges for developers.
The Urban Redevelopment Authority's guidelines for non-landed residential developments state that the Central Area, which includes the Central Business District, the Orchard Road area, and the areas surrounding the Singapore River, among other places, has no upper limit on the number of dwellings that can be built.
A condominium development outside of the Central Area will typically have no more dwelling units than the building's proposed gross floor area (GFA) divided by 85 square meters (sq m), or roughly 915 sq ft. The denominator in some places is 100 sq m.
Additionally, at least 20% of dwelling units in a condo outside of the Central Area should have a nett internal area (NIA) of at least 100 square meters, and no more than 20% should have an NIA of 50 square meters or less. A minimum of 20% of the dwelling units in a condo development in the Central Area should have an NIA of at least 70 square meters. Voids, balconies, air conditioner ledges, and other outdoor spaces are not included in a unit's NIA.
Households that are smaller
Households are generally becoming smaller. In 2023, the average size of resident households was 3.11 people, compared to 3.5 people in 2010 and 3.7 people in 2000. In 2023, 2010, and 2000, the average household size for residents residing in condos and other apartments was 3.17, 3.41, and 3.67 people, respectively.
In contrast, the number of one-person and two-person households increased by 79% and 47%, respectively, between 2013 and 2023, surpassing the 21% increase in resident households.
However, in 2023, about 60% of resident households had three or more people, compared to 40% with one or two people.
https://i.imgur.com/7HnaqOu.png
Should 8@BT, a project that primarily serves one- or two-person households, assign the majority of its homes as one-bedroom and two-bedroom units?
There may be too many one-bedroom and two-bedroom condo units in the future for buyers who choose smaller new homes in order to control the total purchase price.
Endorsing parenthood
Making decisions about marriage, having children, and the number of them are very personal. Nonetheless, a thriving economy depends on population growth, which is unavoidable in the process of nation-building.
Parenthood is supported by a number of policies in the public housing market. In order to help increase the birth rate here, a number of non-housing measures have been implemented and are currently being implemented. On April 1, 2025, for instance, mandatory paternity leave will double from two weeks to four weeks, and parents of newborns will soon receive an additional ten weeks of shared government-funded leave.
In February of next year, Prime Minister Lawrence Wong, who is also the Finance Minister, may announce some positive news regarding increased assistance for parents who are considering a third child and those who have three or more young children.
Could the construction of more condos that are suitable for families with three or more small children encourage people to have more children?
Yes, living in a condo is a goal. Additionally, private condos might be out of reach for many families. Additionally, some large families can live in relatively small homes.
However, a large family might not be able to live in a three-bedroom, 1,238-square-foot flat or a four-bedroom, 1,356-square-foot flat at 8@BT. A four-room or five-room Housing and Development Board (HDB) flat may offer more internal space, excluding the balcony and private lift lobby of said units.
For a couple with three kids, moving from a HDB flat to a house with the aforementioned features at 8@BT might not really be an improvement. To comfortably accommodate the couple, each of the three children, and a grandparent or helper, such a family may require five bedrooms.
Perhaps regulations could specify that a specific percentage of condo development dwelling units should have an NIA of greater than, say, 125 square meters, or roughly 1,346 square feet. Or perhaps grant more GFA to developers who offer a greater proportion of larger units in their condominium developments.
The psf price of larger condo homes may drop if developers are pressured to construct more larger units in new condo developments. If so, a large young family looking to purchase a larger condo unit will find this useful.
