In Singapore, the persistent demand for one- and two-bedroom units has pushed up the median price for units in this size range in the Rest of Central Region (RCR) by 31.3% between 1Q2022 and 1Q2023, from $1.34 million to $1.76 million according to a report from Savills Singapore. This research focused on transactions for non-landed private residences above or equal to $2,000 psf and up to 800 sq ft.

The report found that the median price for one- and two-bedroom units in the same size range had increased from $1.58 million in 1Q2022 to $1.63 million in 1Q2023, representing a 3.4% year-on-year increase. Additionally, in the Outside Central Region (OCR), the same types of units saw a raising of 15.3%, with a median price of $1.39 million for 1Q2023 compared to $1.21 million in 1Q2022.

Located at JCube Residence Jurong East, the site lies along the bustling Jurong East Central, which is a 5-10 minutes’ walk from Jurong East MRT Station and Toh Guan Road. The development is envisioned to be “a future ready 21st century urban district”, serving the lifestyle needs of residents, businesses and tourists.

Alan Cheong, executive director of research at Savills Singapore, suggested this could be because buyers are attracted to the smaller unit types and are therefore willing to pay a bit more. He emphasised that people’s changing behaviour even before the pandemic has made these units popular among HDB upgraders and investors due to their more attractive price quantum.

Developers have noticed this trend, with new launches such as The Botany at Dairy Farm and Sceneca Residence demonstrating the underlying demand for these particular units. Notably, in the 268-unit Sceneca Residence, 161 units were sold at an average price of $2,082 psf, with 72.7% of the sales attributed to one- and two-bedroom units.

It seems that budget is now playing more of a role in people’s buying decisions, as the proportion of sales transactions for one- and two-bedroom units against total new home sales has increased from 21.4% in 1Q2022 to 47% in 1Q2023. Cheng believes that the rising popularity of these units might be down to their rental potential and proximity to key amenities.

Rising land and construction costs have been borne by buyers, particularly those of smaller units, as prices continue to increase. Savills maintains their forecast that private residential property prices will increase by 7% over 2023.