By Kalpana Rashiwala

SINGAPORE - Small is not only the new popular as far as private apartments go; it's also what has skewed per square foot (psf) prices skywards in recent years.

The median price quantum of private homes sold by developers has fallen from about $1.4 million in April this year to $1.2 million in May and June and $1.1 million in July - but median psf prices have hovered above $1,000 psf for most months this year.

At the same time, the median unit size of new homes sold has shrunk to below 110 square metres (1,184 sq ft) since April this year - after staying at or above this size for most of the preceding 12 months, according to CB Richard Ellis' analysis of caveats of developer sales since January 2007 based on URA Realis data captured as at Aug 25.

CBRE executive director Li Hiaw Ho said that the figures could be due to an increasing number of caveats lodged for 'small-format' or 'shoebox' apartments from projects such as Siglap V, Parc Elegance, Suites @ Katong, Parc Somme, Centra Studios, La Brisa and Casa Aerata, all of which have been selling very well since April this year.

'These units were transacted at between $900 psf and $1,350 psf but their absolute price quantum ranged from $350,000 to $700,000, which made them affordable,' said Mr Li.

Some developers are drawn to building shoebox apartments - which are typically 500 sq ft or smaller - as these small units can often push up their average per square foot prices past the $1,000 psf mark. At the same time, the lumpsum investment - typically well below $1 million - looks affordable and therefore appeals to a wider pool of investors and speculators.

CBRE studied the monthly median absolute price quantum, median psf prices and median unit sizes of private homes sold by developers since January 2007. It found that the median price was at its highest in October 2007 - during the previous property boom - at $2.47 million. In that same month, the median unit size was 159 sq m or 1,711 sq ft, reflecting the popularity of large units at the time, with the median psf price at $916 psf.

In contrast, even as the average size of new apartments sold has since shrunk, the median psf price for most months this year has been above $1,000 psf. For instance, in April, it was $1,245 psf and in May, $1,128 psf.