One of the most common questions I get from buyers is a very simple one:
“Rachel, why do agents always talk about PSF? Why can’t we just use the full price?”
It’s a fair question — because at the end of the day, the full price (what we call the quantum) is the number that comes out of your bank account.
So why does PSF even exist? And more importantly, why does it sometimes feel like buyers and agents are speaking completely different languages?
Let’s break this down properly.
What PSF Actually Is (and Why It Exists)
PSF simply means price per square foot.
It is not the price you pay. It is not the amount you borrow. It is not the number your stamp duty is based on.
PSF exists for one main reason: comparison.
When properties come in different sizes, layouts, and configurations, looking at total price alone doesn’t always tell you which one is “more expensive” in real terms.
For example:
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A 400 sqft unit priced at $1,000,000
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A 600 sqft unit priced at $1,200,000
If you only look at the quantum, the second unit looks more expensive.
But is it really?
Without PSF, it’s hard to tell whether you’re paying more per unit of space or simply buying more space overall.
This is why agents lean on PSF — it helps buyers compare apples to apples, instead of apples to watermelons.
A Simple Analogy Most People Get Immediately
Think about finding a part-time job.
You don’t just look at the monthly pay. You also look at the hourly rate.
Two jobs might both pay $1,200 a month, but if one requires far more hours, you instinctively know it’s not the same value.
PSF works the same way. It standardizes comparison.
And used correctly, it is a helpful metric.
Where Buyers Get Tripped Up
The problem isn’t PSF.
The problem is when PSF becomes the only number buyers focus on.
This is where confusion, disappointment, and poor planning often creep in.
Because here’s the uncomfortable truth:
Your loan doesn’t care about PSF. Your stamp duty doesn’t care about PSF. Your cash and CPF outlay don’t care about PSF.
Every major financial commitment you make is based on quantum — the total price.
You don’t pay PSF to the seller. You pay the full amount.
Yet many buyers emotionally anchor themselves to PSF because it sounds smaller, more digestible, and less intimidating.
Why PSF Can Be Misleading Without Context
This is especially obvious when comparing different types of properties — such as new launches and resale homes.
New launches often have:
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Higher PSF
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Smaller unit sizes
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Higher headline numbers
Resale homes may show:
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Lower PSF
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Larger spaces
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More “comfortable” total prices
If you only compare PSF, new launches almost always look overpriced.
But if you only compare quantum, resale may always look like the safer option.
Both conclusions can be wrong — depending on what you’re trying to achieve.
Different products exist for different buyers, time horizons, and goals.
PSF alone cannot tell you:
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Whether the total price fits your budget
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Whether your loan structure is sustainable
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Whether the holding period makes sense
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Whether the exit strategy aligns with your plans
So Which Number Actually Matters More?
The honest answer is: you need both — but for different reasons.
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PSF helps you understand relative value
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Quantum determines financial reality
One tells you how expensive something is per unit. The other tells you whether you can sleep at night after buying it.
Problems arise when buyers confuse these two roles.
A Better Question to Ask
Instead of asking:
“Is this PSF cheap?”
A more useful question might be:
“Does this total price make sense for my income, cash flow, and long-term plans?”
And instead of asking:
“Why is this PSF so high?”
It may be more productive to ask:
“What am I comparing this against — and is that comparison even fair?”
Kopi for Thoughts
PSF is not useless. Quantum is not everything.
But when buyers understand what each number is meant to do, decision-making becomes much clearer — and far less emotional.
Good property decisions don’t come from chasing the lowest PSF or the smallest quantum.
They come from context, clarity, and alignment with your goals.
I’m curious — when you look at a property, do you focus more on PSF or quantum first? And has that changed over time?
Happy to hear different perspectives in the comments! –
Rachel, 92336690
