Originally Posted by
Wild Falcon
I think the higher PSF is because of downsizing of units. Or else prices would have crashed in the index. I read in the paper few days ago, the average size of a new unit (country-wide) is only approx 650sqft, a reduction of 40% from a year ago. The average size of new OCR unit is larger at 750sqft. Assuming 70% in OCR, this means average size of CCR/RCR unit is less than 500sqft. So not surprising, CCR/RCR prices are dropping because they cannot go any smaller than that. I hv mentioned this before, the reason I believe 2 years ago why OCR has upside is because at that time the downsizing has not happened in the region. Now, downsizing has come to OCR as well, albeit average size of new OCR units still much larger than CCR/RCR. But at some point in time, the downsizing has to stop, that is when OCR will start suffering the same fate as CCR/RCR/