Page 1 of 3 123 LastLast
Results 1 to 30 of 85

Thread: Home prices go up, but sizes go down

  1. #1
    Join Date
    Oct 2011
    Posts
    10,829

    Default Home prices go up, but sizes go down

    http://www.straitstimes.com/Money/St...ry_765333.html

    Home prices go up, but sizes go down

    Published on Feb 11, 2012

    By Esther Teo, Property Reporter


    THE prices keep going up but the median size of private homes has been rapidly shrinking as home buyers try to stretch their dollar further.

    Developers are driving the trend as they downsize homes to keep them affordable even though the prices per sq ft (psf) have been increasing.

    The shrinkage has been marked with the median size of all new homes sold last year falling to 904 sq ft - 26 per cent less than the median 1,216 sq ft just two years ago, according to an analysis by consultancy CBRE of caveats lodged.

    Experts add that a typical three-bedroom unit has been whittled down from about 1,100 sq ft to 1,300 sq ft five years ago to about 1,000 sq ft.

    Shoebox apartments of 500 sq ft and less are also likely to have brought the median home size down as they have been gaining in popularity in recent years.

    They usually go for under $1 million and attract mostly investors.

    Sales of such units have shot up from 300 in 2008 to 1,900 in 2010, or from 6 per cent to 12 per cent of developers' sales over the same period.

    Mr Colin Tan, research head at Chesterton Suntec International, said it is 'alarming' to note that half of all new homes sold last year were 904 sq ft or smaller.

    'Unless all of these units are popular due to lifestyle changes...the data reflects how much damage has been inflicted on our physical real estate by high property prices,' he added.

    'I expect average sizes of sold units to continue getting progressively smaller as long as market price levels remain high.'

    Big units are also likely to command a premium in the longer term as there will be fewer of them, Mr Tan noted.

    Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate, said there has been a definite trend towards smaller units, especially in recent years.

    In 2005, units up to 1,076 sq ft comprised 35 per cent of new private home sales, but last year that figure jumped to 65 per cent.

    Affordability is a major factor in the shrinking of floor areas, he said, with home prices surging 74 per cent from 2005 to last year.

    'Back in 2005, one could buy a new 1,100 sq ft to 1,200 sq ft three-bedroom suburban condo for $500 psf to $600 psf. Today's rate for a comparable unit would generally be upwards of $900 psf, making bigger floor areas less affordable than before,' Mr Ong noted.

    Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said lifestyle changes, like more singles choosing to live on their own, could have led to smaller homes.

    'But the trend of shrinking homes might be reversed if property prices fall, allowing developers to build larger homes instead while keeping overall prices steady,' he added.

    He noted that the median of 904 sq ft is just slightly smaller than a four-bedroom Housing Board (HDB) flat, which is usually 90 sq m to 95 sq m - or between 969 sq ft and 1,023 sq ft.

    Private home sizes cannot keep getting smaller as there is a limit to how much home buyers, such as HDB upgraders, might be willing to trade size for private condo amenities, he said.

    Home values have been generally rising on the back of the property market's recovery from the global financial crisis in 2009.

    Median prices reached $1,194 psf in 2010 before dipping slightly to $1,125 psf last year, possibly due to an increased number of suburban homes sold compared with those sold in 2010.

    But while the number of new homes sales in 2010 and last year exceeded the number in the previous record year of 2007, they were well below the total transaction value of $24.5 billion in 2007.

    Experts say this is because 2007 was a year when the high-end and luxury market peaked and thousands of expensive homes in districts 9, 10 and 11 were snapped up.

    On the other hand, it was the mass-market segment, with typically lower quantums, that powered the property market in the past two years.

  2. #2
    Join Date
    Jan 2009
    Posts
    372

    Default

    All these patterns.. learn from HDB lor... citing lesser people living in falt mah. So per pax per sf living space still more !
    Ha.. but wonder hold water ?
    IMHO.. more for maximum profit ... to reap the cash cow..

  3. #3
    Join Date
    May 2009
    Posts
    66

    Default

    Developers gets richer. That is why Far East owners are easily the richest family in Singapore.

  4. #4
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Last time developers built small small units because of genuine lifestyle preferences. Now developers built small small units to overcome the high cost of property prices. The rental market for MM units will be severely hit when these units all become available in the market...

  5. #5
    Join Date
    May 2009
    Posts
    616

    Default

    that is why more people go landed....

    condo getting smaller and smaller.

  6. #6
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by wind30
    that is why more people go landed....

    condo getting smaller and smaller.
    Next time landed also become smaller and smaller... Lol! I've seen less than 1000 sqft land area for landed properties... Wow!

  7. #7
    Join Date
    Mar 2009
    Posts
    6,134

    Default

    Quote Originally Posted by wind30
    that is why more people go landed....

    condo getting smaller and smaller.

    its a land grab now. ppl try to grab if they can afford a piece. but landed comes with its own set of problem. I think better to go get a old bigger unit if possible and use for own stay for long term.

  8. #8
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    Already happened in some cluster housings with small per floor area together with circulation and even internal lift which are not so useable. This is what we call compact living. Singapore has and will become a vertical and compact city.
    Quote Originally Posted by ysyap
    Next time landed also become smaller and smaller... Lol! I've seen less than 1000 sqft land area for landed properties... Wow!

  9. #9
    Join Date
    Jan 2011
    Posts
    1,636

    Default

    at 1300-1500+psf for small units at Watertown, I dont understand why people dont buy dleedon 1 bedroom? so much more worth it right???

  10. #10
    Join Date
    Aug 2011
    Posts
    1,516

    Default

    Quote Originally Posted by CCR
    at 1300-1500+psf for small units at Watertown, I dont understand why people dont buy dleedon 1 bedroom? so much more worth it right???
    the buyers in this forum only pay 9xx-10xxpsf

    If it is really from 13xxpsf, i do not think they will buy

  11. #11
    Join Date
    Jan 2011
    Posts
    1,636

    Default

    Quote Originally Posted by Rosy
    the buyers in this forum only pay 9xx-10xxpsf

    If it is really from 13xxpsf, i do not think they will buy
    What type of units did they buy? big units? or those with a lot of patio and bif balcony?

  12. #12
    Join Date
    Aug 2009
    Posts
    2,988

    Default

    Quote Originally Posted by smallant
    .. learn from HDB lor... citing lesser people living in falt mah.
    It's not that.

    if we want to blunt, it simply means the newer generation of condo buyers are not richer than the past generation. they simply cannot afford a decent sized apartment, but they must want one. Developers see this and profit from it. All these "SOHO", "Suites" are simply b**sh** gimmicks.

  13. #13
    Join Date
    May 2009
    Posts
    976

    Default

    I would have thought SOHO and loft units are hip...climb ladder to go sleep...

    But not happening for when one is older...

    Quote Originally Posted by amk
    It's not that.

    if we want to blunt, it simply means the newer generation of condo buyers are not richer than the past generation. they simply cannot afford a decent sized apartment, but they must want one. Developers see this and profit from it. All these "SOHO", "Suites" are simply b**sh** gimmicks.

  14. #14
    Join Date
    Aug 2011
    Posts
    1,516

    Default

    Quote Originally Posted by CCR
    What type of units did they buy? big units? or those with a lot of patio and bif balcony?
    all standard non ground flr units. 1/2 bedder during preview launch

    Someone paid 10xxpsf for a 4bedder high floor partial waterway view unit

    maybe you should browse through the thread and see for yourself

  15. #15
    Join Date
    Aug 2011
    Posts
    1,516

    Default

    Quote Originally Posted by amk
    It's not that.

    if we want to blunt, it simply means the newer generation of condo buyers are not richer than the past generation. they simply cannot afford a decent sized apartment, but they must want one. Developers see this and profit from it. All these "SOHO", "Suites" are simply b**sh** gimmicks.
    I think it is due to 40% downpayment instead of 10-20% previously. Budget shrinks significantly by half effectively

    As a result, buyers are forced to down 40% which significantly reduce the monthly installment and hence stronger holding power?

  16. #16
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by Rosy
    all standard non ground flr units. 1/2 bedder during preview launch

    Someone paid 10xxpsf for a 4bedder high floor partial waterway view unit

    maybe you should browse through the thread and see for yourself
    Can get FH units closer to city for such big units at $10xx psf...

  17. #17
    Join Date
    Aug 2011
    Posts
    1,516

    Default

    Quote Originally Posted by ysyap
    Can get FH units closer to city for such big units at $10xx psf...
    yes. and i personally do not see much upside in capital appreciation to enter the market now unless price corrects by 15-20%

  18. #18
    Join Date
    Aug 2011
    Posts
    1,516

    Default

    Quote Originally Posted by ysyap
    Can get FH units closer to city for such big units at $10xx psf...
    if we are purely talking about psf, there are FH projects around Dleedon selling for similar psf too

  19. #19
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by Rosy
    yes. and i personally do not see much upside in capital appreciation to enter the market now unless price corrects by 15-20%
    People have been projecting 10% or more price correction since Dec 2011 but prices have been rather stead since... hmmm..

  20. #20
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by Rosy
    if we are purely talking about psf, there are FH projects around Dleedon selling for similar psf too
    There might be an unspoken trend to move away from city area coz more and more people prefer quietness and serenity away from the busyness of city lifestyles. Wait till these so called quiet places also become buzzing with activities... then they'll move to Pulau Ubin...

  21. #21
    Join Date
    Nov 2008
    Posts
    9,217

    Default

    Neighbourhood estates are getting crowded on both weekdays and weekends with the surge in population in Singapore in the last few years. It is relatively quieter in the city ie, Shenton way area, on weekend as compared to satellites town. So, not bad to stay in this part of the city on weekend.
    Quote Originally Posted by ysyap
    There might be an unspoken trend to move away from city area coz more and more people prefer quietness and serenity away from the busyness of city lifestyles. Wait till these so called quiet places also become buzzing with activities... then they'll move to Pulau Ubin...

  22. #22
    Join Date
    Aug 2009
    Posts
    2,988

    Default

    Quote Originally Posted by ysyap
    ...trend to move away from city area coz more and more people prefer quietness and serenity away from the busyness of city lifestyles.
    not at all. many real prime areas are really quiet, peaceful, in fact, "exclusive". Many of these new OCR hot projects are the total opposite in terms of both human density and serenity. Do you call Watertown a "quiet, serene" place ?

    The real reason for the OCR new launch boom is very obvious..

  23. #23
    Join Date
    Jan 2011
    Posts
    1,636

    Default

    Quote Originally Posted by Rosy
    all standard non ground flr units. 1/2 bedder during preview launch

    Someone paid 10xxpsf for a 4bedder high floor partial waterway view unit

    maybe you should browse through the thread and see for yourself
    Then how come newspaper say 1300 psf to 1500 psf

  24. #24
    Join Date
    May 2011
    Posts
    600

    Default

    Quote Originally Posted by amk
    not at all. many real prime areas are really quiet, peaceful, in fact, "exclusive". Many of these new OCR hot projects are the total opposite in terms of both human density and serenity. Do you call Watertown a "quiet, serene" place ?

    The real reason for the OCR new launch boom is very obvious..
    Totally agree.

    Try walking around some of condos at orchard and you will appreciate how peaceful and quiet they are.

  25. #25
    Join Date
    May 2009
    Posts
    1,381

    Default

    Quote Originally Posted by Jonathan0503
    Totally agree.

    Try walking around some of condos at orchard and you will appreciate how peaceful and quiet they are.
    Nassim bestest.. eerily quiet.

  26. #26
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by DC33_2008
    Neighbourhood estates are getting crowded on both weekdays and weekends with the surge in population in Singapore in the last few years. It is relatively quieter in the city ie, Shenton way area, on weekend as compared to satellites town. So, not bad to stay in this part of the city on weekend.
    Hmmm... 2 days out of 7 will be quieter then...

  27. #27
    Join Date
    Nov 2008
    Posts
    8,013

    Default

    Quote Originally Posted by amk
    not at all. many real prime areas are really quiet, peaceful, in fact, "exclusive". Many of these new OCR hot projects are the total opposite in terms of both human density and serenity. Do you call Watertown a "quiet, serene" place ?

    The real reason for the OCR new launch boom is very obvious..
    WT is not that quiet or serene but in general, Punggol has a lower population density than many other towns in Singapore such as Hougang, Seng Kang, Bedok and Tampines... that was what I meant...

  28. #28
    Join Date
    Jan 2011
    Posts
    1,636

    Default

    River valley road... from jervois side all the way to Rivergate also damn quiet.... killiney also quiet.... actually the whole of district 9 10 11 excluding the shopping mall at orchard all quite quiet....

    if you go to dempsey and holland village you can see that there are people but not too crowded, just nice...

  29. #29
    Join Date
    Dec 2008
    Posts
    2,419

    Default

    Quote Originally Posted by amk
    not at all. many real prime areas are really quiet, peaceful, in fact, "exclusive". Many of these new OCR hot projects are the total opposite in terms of both human density and serenity. Do you call Watertown a "quiet, serene" place ?

    The real reason for the OCR new launch boom is very obvious..
    come come, don't lie and exaggerate. I was having dinner at UE square on Friday night. it was so noisy I couldn't hear myself think. My wife kept asking me why I kept shouting at her. I said "I am shouting at you so I know what I am saying."

    I understand that UE square area is even noisier on Saturday night.

    Don't get me started about orchard road on week days and weekends. It is noisy and it is a soup of chemical carcinogens.

    Some areas in CCR are not noisy, like Nassim, but not all.

    so, you are welcome to argue, but don't lie.

  30. #30
    Join Date
    Dec 2008
    Posts
    2,419

    Default

    by the way, the way OCR homes prices are skyrocketing while CCR prices are stagnating is exactly what I predicted one year ago. Like Jeremy lin, I was brushed aside, laughed at and snickered at, but now I have been proven right.

Similar Threads

  1. Govt must not shy away from regulating apartment sizes
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 15-05-18, 00:03
  2. Washer-dryers popular as home sizes shrink
    By reporter2 in forum HDB, EC, commercial and industrial property discussion
    Replies: 1
    -: 11-04-15, 01:13
  3. 2 bedders with sizes of at least 800 sf
    By Yuki in forum Singapore Private Condominium Property Discussion and News
    Replies: 12
    -: 29-04-14, 20:17
  4. More units cranked out as home sizes shrink
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 24-08-11, 23:52
  5. Shrinking sizes, steady demand
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 18-01-10, 22:54

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •