The Housing Board is building more flats to meet the housing demand in Singapore, but the units are becoming smaller and smaller ("HDB to bump up supply of smaller flats next year"; Tuesday).
Not only that, these flats come with higher price per square foot.
For example, new five-room flats are now the size of older four-room units, but are sold at the same price as older (and larger) five-room units.
This is a cause for concern as it gives the illusion that flat prices have remained stable.
The HDB has reasoned that the amount of living space per person has risen because the number of people in an average household has declined.
But homes are valued based on their total area, and buyers are losing out.
Smaller homes can be built for those who do not mind the space limitation, but prices should be proportionately lower.
Jimmy Ho Kwok Hoong
*Article first appeared on ST Forums