Are Larger Units Really Better Value?

Understand the difference between asking price and property valuation, and how professional valuers assess a property’s market value.

Written by Lee Yi Yang, Valuer at CKS Property Consultants.

Originally published on mortgageplus.

Blogs & Articles / Are Larger Units Really Better Value?

Would you spend $100 to get a 15% discount, or $200 to get a 20% discount? Most people assume that buying more means paying less per unit – the classic “bulk discount” effect – and property has traditionally worked the same way. Smaller units usually come with a higher price per square foot (PSF), while larger units tend to have a lower PSF.

However, we are seeing a shift in the market, and it is becoming more prevalent that larger homes do not equal lower PSF. Why is this happening? The answer lies in the shift in price quantum and buyer behaviour.

What is ‘Price Quantum’?

No, we are not talking about Yeezy’s QNTM sneakers, but how buyers evaluate a property based on its overall affordability. In property, “quantum” refers to the total purchase price of a home, not just its PSF. For example, Unit A is priced at $1,000,000 with a size of 500 sqft, making its PSF $2,000. On the other hand, Unit B is 1,000 spft, at a price of $1,700,000, making its PSF $1,700.

Even though Unit B has a lower PSF, the actual financial commitment is higher, and this is where buyer behaviour changes.

Traditionally, before ABSD was introduced, smaller units attracted investors because of lower entry prices. They could purchase two smaller units at the price of one bigger unit, even if they were paying a higher premium on a PSF basis.

Today, that relationship is changing.

Recent transactions show how this shift is playing out in actual pricing. Some larger homes are holding comparable, or even stronger, PSF values, reflecting how buyer priorities have changed in today’s market.

What this means for buyers

The old assumption that larger units have lower PSF may no longer hold true. With more buyers prioritising space, larger homes are seeing stronger demand than before. Instead of looking at PSF alone, buyers should evaluate the total financial commitment, future flexibility, and whether the property truly fits their long-term plans. In today’s market, the better purchase is not always the one with the lower PSF – it is the one that makes the most financial sense for you.