In the year 2014, Condominium Units are continuing to shrink in size. This is due to the harsher market in the post-aftermath of cooling measures and stricter loan requirements. In an attempt to combat this situation, Condominium developers have decided to approach it from a different angle – downsizing the condominiums instead of straight-out dropping the price.
What’s the explanation for this move? Condominiums are a very expensive development. Developers simply cannot afford to outright drop prices while making no other changes. In fact, some might consider the price per sqft to be even bigger in this day and age!
However, while the living space is certainly smaller, the price of a new condominium property has dropped overall. This is a calculated move to ensure that the price is not out-of-reach for most Singaporeans who are seeking for a place to live – after all, if the price is too high, no one will buy it at all, so sometimes you have to take action.
If you think about it, while the extra space is nice, for some people, there is no point in having more space than you can use. A condominium still has very nice facilities and other attractive aspects outside of sheer living space, and for house seekers who enjoy small, cozy homes, this might be appealing to them, opening up a new market.
Will condominiums continue to shrink in size, will their scale stabilized or perhaps, even though it’s very rare, could it one-day even expand in size due to new technology creating bigger and better buildings? Who knows what will happen in the future, but as of now, things seem to be set up for change.
We hope this has been helpful insight into your future plans of property investment. If you’re looking to take advantage of this opportunity, at Condo New Launches we have a wide variety of information on new properties for you to pursue.
