High per square foot prices of new condos

Source & Credit:

The article argues that headline per‑square‑foot (psf) prices for new Singapore condos are becoming a less useful indicator of “expensiveness” for many buyers, because purchase decisions are increasingly anchored on the total price (absolute quantum) and whether the home fits their needs.

Key points:

- Regulatory/measurement changes are pushing psf up mechanically. With the ongoing harmonisation of floor-area definitions (e.g., how items like air‑con ledges and other spaces are counted), the “saleable” area used to compute psf can look smaller or be defined differently across projects, making psf comparisons less apples‑to‑apples.

- Developers are designing more efficient, compact layouts. As land costs rise, new units tend to be boxier and better planned, with less “wasted” space. Buyers may accept smaller floor areas if the layout works, which can raise psf even if the overall price remains within reach.

- Lifestyle needs are changing. Many households prioritise flexible spaces (e.g., study/utility/multi‑use rooms) over simply maximizing bedroom count or interior area, reducing reliance on psf as the main yardstick.

- Affordability is judged by total outlay and financing limits. Loan rules and cash/CPF requirements mean buyers focus on whether they can service the mortgage and afford the down payment—again pointing them to quantum, not psf.

- psf still matters, but mainly as a reference point. It remains a benchmarking tool (especially against nearby projects), yet it’s increasingly “noisy” because unit efficiency, project positioning, and measurement rules can all distort psf without changing the buyer’s real affordability.

Bottom line: psf will likely keep rising for new launches, but the article suggests buyers will continue to treat it as a secondary metric, with quantum and liveability doing most of the decision-making work.