Chart of the Day: Average home sizes could grow to 920 sqft in 2021

Buyers may likely adopt a wait-and-see approach.

This chart from DBS Bank reveals that the government’s policy to hike the average size of home projects will drive home size to rise to 920 sqft in 2021. The policy is in response to a decline in home sizes, which dropped towards the level of 700 sqft in 2018-2019.

The latest policy introduced on October 2018 set the average size of each residential project to 85sqm or 100 sqm for homes outside the core central region (CCR) starting 2019, which is at least 20% larger than the original size.

“If buyers remain constrained by the “quantum” of each home, with more projects subject to the new ruling hitting the market from 2020 onwards, buyers (especially genuine upgraders) are likely to adopt a “wait-and-see” attitude before committing to a purchase of a new home,” the report stated.