Property players are keen in offering smaller housing units nowadays.
This trend originated in the mid-tier and mass-market projects. However, development projects in downtown areas such as One Shenton, Icon and Sail@Marina Bay have also built room units smaller than 700 sq. ft.
Executive Director of Colliers International, Ho Eng Joo, said that developers find this trend commercially viable since smaller units result in higher profit margins.
Since smaller apartments are relatively affordable compared to bigger apartments, the prices seem to be a good deal for house buyers. This is the rationale of several developers who are finding ways to reduce their unit sizes so that they can sell their projects easier and faster, according to industry sources.
When the economy went through a slower phase in the early parts of the year, this strategy of developers became evident.
However, bigger developers who own larger sites do not typically build small units.
Usually, smaller developers with small sites attempt to carve out as many pigeon holes as possible. “If the sites are near MRT stations, developers will want to make the units as small as possible so that they are affordable,” said Lim Yew Soon, Managing Director of EL Development.
Examples of this include Kembangan Suites, Alexis in Alexandra, 8@Woodleigh as well as the Illuminaire in Devonshire Road, Mr. Lim’s sold-out project.
Several buyers seem to be happy with the trend as shown in good take-up rates results. However, some buyers are wondering if living in small apartments would compromise the quality of their lives.
Property experts explain that quality of life will not be in jeopardy if developers focus on the layout, planning and view of the project.
“I don’t think it is right if the planning layout is such that the cooker hob is next to the bed,” said Mr. Lim of EL Development.
In big urban cities such as Tokyo and London, apartment units can be as small as less than 200 sq ft. In Hong Kong, 32 percent of the total housing units are below 430 sq ft.
“As affordability gets stretched, people are prepared to compromise on the unit size,” explained Mr. Simon Smith, senior director of research for Savills Hong Kong.