URA changes floor size outside of CCR

The recent announcement from URA in regarding smaller shoebox units, namely the 1Br and 2br, is worth to ponder upon.

Why does URA suddenly came up wirh a regulation to have the developers increase the floor sizes from 70sqm to 85sqm and 100 sqm? That is an increase of around 21% and 42% respectively 

Let us take a step back and look at the whole picture. 2 points to highlight,

1. Singapore family sizes are shrinking, parents do not want to have  more children now 

2. We are fast becoming a aged society 

How do we interpret this? It means the demand for smaller units will remain stronger than before, and with limited supplies what will happen? Prices will go up..

But will increase in floor sizes lower the psf?

Put it this way, if demand for smaller sizes increase will developees drop the price? 

Another Important impact to this new regulation is the quantum of the small size units.

This will means the quantum for this type of units will increase, and you will find you need to fork out more out front to buy such units.