Introduction: A Changing Resale Market
Singapore’s condo resale market is showing an interesting trend — while smaller, compact units are finding it harder to attract buyers, older but spacious condos are enjoying renewed demand.
This shift highlights how buyer preferences are evolving in response to lifestyle changes, affordability concerns, and the increasing importance of space and liveability in a post-pandemic world.
Why Smaller Units Are Struggling
In recent years, developers have focused on shoebox apartments and compact units to cater to investors and younger buyers. However, these smaller condos are now facing challenges:
- Affordability vs. Liveability: Rising prices make smaller units less appealing as buyers prefer more space for the same budget.
- Rental Demand Plateauing: Investor-driven purchases are weakening as rental yields stabilise.
- Limited Functionality: Compact layouts often lack flexibility for remote work or growing families.
- Resale Competition: A high supply of small units in newer developments creates downward pressure on resale value.
The Comeback of Older, Spacious Condos
On the flip side, older condominiums — especially those built in the 1980s and 1990s — are becoming more attractive to buyers due to their larger layouts and value-for-money pricing.
- Bigger Homes, Lower PSF: These condos often offer 2,000+ sq ft units at per-square-foot (PSF) rates significantly lower than new launches.
- Family-Oriented Buyers: With more families seeking larger living spaces, demand has shifted toward these older projects.
- Potential for Renovation: Buyers can upgrade interiors to modern standards while enjoying spacious layouts.
- Collective Sale Potential: Older condos also appeal to investors betting on en bloc sales in the future.
Market Trends Behind the Shift
This trend reflects broader shifts in the property market:
- Work-from-Home Lifestyle: More professionals are prioritizing space for home offices and flexible living areas.
- Affordability Pressures: With new launches priced at record highs, buyers are turning to resale markets for larger yet affordable options.
- Generational Preferences: Younger families value functionality and space over luxury amenities in newer but smaller units.
Examples in the Market
Recent transactions highlight this pattern:
- Smaller Units: 1-bedroom and studio condos in city-fringe areas are taking longer to sell, often requiring price adjustments.
- Spacious Units: Older condos in areas like Bukit Timah, East Coast, and Upper Thomson are attracting strong demand despite their age, thanks to spacious layouts and relatively lower PSF prices.
What Buyers Should Consider
For buyers navigating this market shift:
- Evaluate Lifestyle Needs: If space is a priority, consider older resale condos with larger layouts.
- Long-Term Value: Smaller units may face weaker resale demand, while spacious condos could enjoy sustained interest.
- Renovation Budget: Factor in potential costs of upgrading older units.
- Location Trade-offs: Newer compact condos may offer centrality, while older ones often provide more space in slightly less central locations.
Investor Insights
For investors, the shift also carries important signals:
- Rental Market: Compact units may still perform in rental-heavy districts, but growth potential is slowing.
- Capital Appreciation: Larger, older condos in desirable districts may offer better appreciation potential given scarcity and demand.
- Exit Strategy: Consider buyer pool preferences — future buyers are increasingly valuing space.
Conclusion: Space Over Compact Luxury
The Singapore resale condo market is undergoing a subtle but significant transformation. Smaller units are struggling to maintain resale appeal, while older, spacious condos are gaining traction among families and value-seeking buyers.
For buyers, this represents an opportunity to secure larger homes at attractive PSF rates, while investors should take note of the shifting demand dynamics that could shape capital growth prospects in the coming years.
