diff --git a/packages/@vue/cli-service/lib/config/base.js b/packages/@vue/cli-service/lib/config/base.js
index 2460919def..b76dc24ef7 100644
--- a/packages/@vue/cli-service/lib/config/base.js
+++ b/packages/@vue/cli-service/lib/config/base.js
@@ -84,7 +84,7 @@ module.exports = (api, options) => {
           .loader('vue-loader')
           .options(Object.assign({
             compilerOptions: {
-              preserveWhitespace: false
+              whitespace: 'condense'
             }
           }, vueLoaderCacheConfig))