Commentary: There is greater demand for bigger homes in a pandemic but will it last?

The pandemic has changed the way we live and work, with people waking up to the realisation this indeed may be our new normal and we would have to re-evaluate our space needs and the expanded role the home plays in our lives.For the whole of 2020, 5,984 5-room units and 1,882 executive units have been resold, representing a year-on-year increase of 10.3 per cent and 12.8 per cent from 2019.

While subsequent demand weakened slightly – falling by 3.2 per cent for 5-room flats and 13.3 per cent for executive flats - this easing was due to the high base in the previous quarter, limited availability of larger flats and some price resistance. Five-room resale flats also saw the largest compounded average growth rate from 1Q 2017 to 1Q 2021 of about 2.9 per cent.There is a similar trend in the private housing market, with an increase in queries for 3-bedroom units at recent new launches and prospective buyers citing the need for more space for a home office.

But as staying home more often might be the new normal with on-off restrictions, lifestyle preference also plays a role as the well-heeled buy a larger unit to create a music room or a library or a yoga studio. Other also knock down walls to enlarge the rooms.With homes generally shrinking in size, larger units can become something of a rarity. Five-room flats built between 1990 and 2000 have an average size of 1,300 sq ft, while those built between 2000 and 2010 averaged 1,190 sq ft.

Analysing the sales transactions in the the Core Central Region sales of units below 500 sq ft have accounted for a rising proportion of transactions – ticking up to 15.8 per cent of new non-landed home sales in 2020 from 11.8 per cent in 2019 and 7.6 per cent in 2018.Most buyers are still quantum-sensitive, and developers will still need to offer a diverse range of unit sizes to fit different budgets.

To keep units affordable while driving sales, developers may think about introducing other amenities that facilitate WFH.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Commentary: Under-taxed profits of multinationals could fund higher public spending in post-pandemic recoveryThe G7’s groundbreaking agreement on a minimum effective corporate tax could fund important infrastructure and social services needed for a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Chinese flock to home-grown brands in golden opportunity for investorsHe Shuang, a student at a US university stranded in her home city of Chongqing in southwest China during the pandemic, has added more than 300 ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Chinese flock to home-grown brands in golden opportunity for investorsHe Shuang, a student at a US university stranded in her home city of Chongqing in southwest China during the pandemic, has added more than 300 ... it looks like japanese
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Shut off from the world, Australia fosters red-hot growth at homeA year after the coronavirus pandemic pummelled Australia's economy, IT contractor Ashok Ravindran has a nice problem: deciding which of three job ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Turn technology to your advantage in the new hybrid workplaceDespite the popularity of remote-work apps like Zoom and Slack during the pandemic, studies have found that the most effective communication tools are still the most low tech.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Kai Ko has been delivering food for his restaurantTaipei -- Since the pandemic started, many businesses struggled to stay afloat including F&B businesses owned by celebrities such as JJ Lin and Jam Hsiao. They were not the only ones as actor Kai Ko had to shut down his family's cocktail bar and
Source: IndependentSG - 🏆 2. / 72 Read more »