The number of executive units that were resold in 2020 increased 12.8% year-on year to 1,882, while the number five-room flats that were resold rose 10.3% to 5,984.
Gafoor stated that the pace of sales growth in larger flats was also faster than the 4.6% increase in four-room HDB unit for resale during the same period.
However, the number of three-room flats that were resold decreased 0.7% between 2019 and 2020. This is its first annual decline since 2015.
This strong interest in larger flats isn’t a new trend, despite the fact that it is fuelled by work from home (WFH) and other factors.Since 2014, there has been a steady demand for executive and five-room flats. Their resale volume has posted year-on year growth every year with the exception 2019,” explained Gafoor.
“But clearly, this trend has come into sharper relief in 2020.”
He stated that the 10.3% annual rise in resale value for five-room flats in 2020 was higher than the 10.5% jump in 2016. The 12.8% annual increase for executive flats was the greatest since the 2018.5% growth.
Prices for larger units are also on the rise. The average price per square foot (psf), for a five-room resale apartment, increased 5.2% in the quarter 2020. Executive flats, however, saw a more dramatic increase of over 4% in the past two quarters 2020.
A similar trend was observed in private housing markets.
Gafoor shared the following: Sales of private homes measuring 1,200 sq. ft or more increased by 37% to 1,006 units in 2020, which is higher than the 4% increase recorded for units less than 1,200 sq. ft in the same period.
He said that all sub-markets in Singapore saw a dramatic increase in the sales of larger homes (1,200 sq. ft or more) since the end the circuit breaker.
Despite growing demand for larger homes the developer does not believe the rise is significant enough to justify building smaller units or allocating more floor space to larger units. This is especially true for projects located in the city, city fringe, and areas where investors are more interested in smaller units.
A Core Central Region analysis showed that units under 500 square feet have seen an uptrend in sales. This account accounted for 15.8% last year of new non-landed home sales. This is an increase of 11.8% in 2019 compared to 7.6% in 2018.
Gafoor stated that buyers are still sensitive to quantum and developers will need to offer different sizes of units to suit different budgets.