Why is the HDB resale 4-room PSF higher than the 5-room PSF?

The price per square foot (PSF) for 4-room HDB resale flats being higher than that of 5-room flats can be attributed to several factors:

Demand and Supply Dynamics

In mature estates, the demand for smaller units like 4-room flats is often higher due to their affordability and the fact that they cater to a broader range of buyers, including smaller families and singles. This increased demand can drive up the PSF price.

Limited Supply

The supply of 4-room flats, especially in desirable locations, can be limited compared to 5-room flats. This scarcity contributes to higher prices per square foot as buyers are willing to pay a premium for these units.

Renovation and Maintenance Costs

While the renovation costs for 4-room flats might be lower than those for 5-room flats, the overall cost per square foot is influenced more by the flat's price rather than the renovation costs. However, the perception of lower maintenance and renovation costs for smaller flats can also make them more attractive, driving up their PSF prices.

Buyer Preferences

Buyers often prefer 4-room flats for their compact size and lower overall purchase price, even though the PSF might be higher. This preference, particularly in mature estates with good amenities and transportation links, can push the PSF prices of 4-room flats above those of 5-room flats.

Market Trends

The resale market is influenced by various factors, including the number of new BTO flats reaching their Minimum Occupation Period (MOP) and the overall economic stability of Singapore. These factors can lead to fluctuations in prices, sometimes resulting in higher PSF prices for smaller units due to their broader appeal and limited supply.

In summary, the higher PSF for 4-room HDB resale flats compared to 5-room flats is largely driven by demand, supply dynamics, buyer preferences, and broader market trends.