Quantum Price vs $PSF: What Matters More in Today’s Property Market?
When it comes to buying or investing in property, one of the most common questions buyers ask is:
“Should I focus more on the overall quantum price or the price per square foot ($PSF)?”
Both metrics play a critical role in evaluating a property, but in today’s evolving market—and looking ahead into the future—there's a growing case for why quantum might just be taking the front seat.
Let’s break it down.
Understanding the Two Concepts
Quantum Price refers to the total price of the property. For example, a 2-bedroom unit that costs $1.2 million has a quantum of $1.2M.
Price per Square Foot ($PSF) reflects how much you’re paying for each square foot of the unit. So, if a unit is 800 sqft and costs $1.2M, the $PSF is $1,500.
Both are useful—$PSF helps you compare how ‘expensive’ a property is on a per sqft basis, while quantum affects your affordability and loan eligibility.
So, Which Is More Important Today?
1. Affordability & Loan Eligibility Favour Quantum
With stricter Total Debt Servicing Ratio (TDSR) rules and rising interest rates in recent years, the total loan amount one can take has become a key concern. A lower quantum price means lower monthly repayments, lower upfront downpayment, and easier loan approvals.
That’s why many buyers, especially first-timers and upgraders, are paying more attention to the overall quantum, even if it means compromising slightly on size or location.
🔑 Buyers don't buy $PSF—they pay the total price.
2. Smart Developers Are Designing Smaller Units – But More Efficient Ones
To keep quantum attractive, many developers are launching smaller units with highly efficient layouts. This allows them to position units at a more "affordable" entry price—even if the $PSF appears higher on paper.
One key reason behind this trend is the recent GFA (Gross Floor Area) harmonization.
Previously, areas like aircon ledges were included in the strata area, even though they weren’t usable living space. With GFA harmonization, these non-livable areas are now excluded from the strata size. As a result, units may appear smaller on paper, but in reality, buyers are getting more efficient and practical internal space.
In short, you're now paying for what you can actually live in.
🏠 It’s no longer just about size—it’s about how smart the space is used.
So while the quantum remains the main hook, the value lies in the layout efficiency, making newer launches potentially more liveable and investor-friendly than older layouts of similar sizes.
3. But $PSF Still Matters for Long-Term Value
While quantum affects purchase decisions, $PSF remains important for benchmarking resale value and exit strategy. If you’re buying at a significantly higher $PSF compared to surrounding properties, it may affect your appreciation potential or future buyer appeal—especially in the resale market.
However, a higher $PSF is acceptable if:
The unit has a better layout
There’s future upside potential (e.g., transformation zones)
It’s priced lower in quantum despite the high $PSF
Moving Forward: The Shift Toward Quantum Sensitivity
As Singapore’s property prices continue to rise, and more buyers are stretching their budgets, quantum sensitivity will become even more pronounced. This is especially true for:
First-time buyers concerned about affordability and monthly mortgage repayments
Investors who are seeking higher rental yield, as a lower quantum typically results in a better rental return ratio
Upgraders who are facing a lower loan quantum due to age, and therefore need to keep their next property’s total price within a tighter financing range
In a market where financing limits, investment returns, and future resale considerations all come into play, buyers are prioritizing homes that are both affordable in quantum and smart in layout.
Conclusion
In today’s market, quantum price is becoming increasingly important, especially at the entry point. However, $PSF cannot be ignored, especially for long-term investors or those with an exit strategy in mind.
Ultimately, a balanced view is key. The ideal property is one where the quantum is comfortable, the layout is efficient, and the $PSF is justifiable based on location, future growth, and comparables.
So the next time you’re browsing listings or visiting showflats, remember:
✅ Buy within your means (Quantum)
✅ Know your value (PSF)
✅ Don’t just look at size—look at how well space is used
If you’re unsure which projects balance both well, feel free to reach out—I’d be happy to share insights or arrange a side-by-side breakdown for you.
