Price per square foot, or psf, is how most private property prices in Singapore are quoted and compared. It is simple: the price divided by the floor area in square feet. It is also easy to misread.
Why psf is useful
A 600 sq ft flat and a 1,200 sq ft flat cannot be compared by total price. Psf puts them on the same scale, so you can see whether one project is dearer than another, or whether the price asked is in line with recent sales.
Use the median, not the average
An average can be pulled up or down by a few unusual sales, such as a penthouse or a distressed sale. The median is the middle price when all sales are lined up from lowest to highest, so it is steadier. The market snapshot on OPENVYU shows the median sold psf over the last twelve months, and how it changed compared with the twelve months before.
What psf hides
Floor level and view. A high floor with an open view usually costs more per square foot than a low floor facing a wall.
Unit size. Smaller units often have a higher psf than larger ones in the same project, because fixed costs such as the kitchen and bathrooms are spread over less space.
Remaining lease. A home with 99 years left and one with 60 years left are not the same product, even at the same psf.
Condition and renovation. A recently renovated unit and one that needs work can sell at very different prices.
Landed homes. For landed property, psf can be quoted on the land area or the built-up area. Always check which one is meant.
How to use it well
Compare homes in the same project, or similar projects of similar age and tenure.
Look at several recent sales and the trend, not one single sale.
Treat psf as a starting point for a conversation about price, not as the answer.
Psf helps you ask better questions. The right price is what a buyer is willing to pay for that particular home on that particular day.
