Is a 2-bed-2-bath or 2-bed-1-bath new-launch condo better for investment? Here's what the latest data says
PHOTO: Stackedhomes
PUBLISHED ONMarch 10, 2024 7:33 AMByRyan J
For buyers looking at an investment property, a two-bedroom unit is a typical sweet spot — in terms of rentability and a more achievable quantum. But in recent years, the availability of a smaller two-bedroom unit in the form of a two bed one bath meant that the decision becomes more complicated. Is it better to buy the cheaper unit? Or would the limitation of just one bathroom make it a harder exit in the future?
Depending on your lifestyle, having one extra bathroom could make a big difference. Case in point: tenant roommates who refuse to share bathrooms, because no one wants to wait to shower when both need to be at work by 7 am.
We last did this analysis in early 2023, so here's an update to see if the situation has changed one year forward:
How much more does the extra bathroom cost?
Here's a side-by-side comparison of how the prices differ across projects:
| 2BR 1BA | 2BR 2BA | Difference | ||||
| Projects | Avg $ | Avg $PSF | Avg Price | Avg $PSF | Price | $PSF |
| KI RESIDENCES AT BROOKVALE | $1,436,700 | $2,053 | $1,374,419 | $1,809 | -4.3per cent | -11.9per cent |
| UPTOWN @ FARRER | $1,063,980 | $2,038 | $1,051,296 | $1,953 | -1.2per cent | -4.2per cent |
| PARC CLEMATIS | $1,176,456 | $1,688 | $1,175,991 | $1,630 | 0.0per cent | -3.5per cent |
| THE FLORENCE RESIDENCES | $1,050,461 | $1,636 | $1,075,381 | $1,547 | 2.4per cent | -5.4per cent |
| AMBER PARK | $1,719,869 | $2,536 | $1,789,808 | $2,462 | 4.1per cent | -2.9per cent |
| URBAN TREASURES | $1,294,746 | $1,968 | $1,348,903 | $1,842 | 4.2per cent | -6.4per cent |
| KOPAR AT NEWTON | $1,568,570 | $2,557 | $1,640,769 | $2,382 | 4.6per cent | -6.8per cent |
| AVENUE SOUTH RESIDENCE | $1,428,720 | $2,125 | $1,516,691 | $2,117 | 6.2per cent | -0.4per cent |
| PASIR RIS 8 | $1,203,567 | $1,687 | $1,284,721 | $1,645 | 6.7per cent | -2.5per cent |
| THE JOVELL | $899,741 | $1,366 | $963,139 | $1,336 | 7.0per cent | -2.2per cent |
| BARTLEY VUE | $1,332,846 | $2,030 | $1,441,054 | $1,960 | 8.1per cent | -3.4per cent |
| SKY EDEN@BEDOK | $1,420,313 | $2,129 | $1,546,333 | $2,161 | 8.9per cent | 1.5per cent |
| DAINTREE RESIDENCE | $1,121,262 | $1,736 | $1,226,141 | $1,676 | 9.4per cent | -3.4per cent |
| IRWELL HILL RESIDENCES | $1,662,622 | $2,693 | $1,822,369 | $2,732 | 9.6per cent | 1.4per cent |
| LENTOR MODERN | $1,468,620 | $2,166 | $1,620,244 | $2,214 | 10.3per cent | 2.2per cent |
| ROYALGREEN | $1,789,497 | $2,742 | $1,984,084 | $2,738 | 10.9per cent | -0.2per cent |
| MIDTOWN MODERN | $1,702,396 | $2,743 | $1,889,011 | $2,619 | 11.0per cent | -4.5per cent |
| AMO RESIDENCE | $1,421,739 | $2,150 | $1,579,163 | $2,126 | 11.1per cent | -1.1per cent |
| THE TAPESTRY | $869,645 | $1,422 | $969,645 | $1,378 | 11.5per cent | -3.1per cent |
| ONE PEARL BANK | $1,762,907 | $2,520 | $1,968,329 | $2,390 | 11.7per cent | -5.2per cent |
| PARK COLONIAL | $1,147,563 | $1,807 | $1,293,829 | $1,882 | 12.7per cent | 4.2per cent |
| STIRLING RESIDENCES | $1,175,613 | $1,817 | $1,326,002 | $1,880 | 12.8per cent | 3.5per cent |
| GRANGE 1866 | $2,058,000 | $2,897 | $2,323,426 | $2,935 | 12.9per cent | 1.3per cent |
| FOURTH AVENUE RESIDENCES | $1,507,303 | $2,347 | $1,707,306 | $2,425 | 13.3per cent | 3.3per cent |
| THE WATERGARDENS AT CANBERRA | $1,001,338 | $1,494 | $1,136,302 | $1,454 | 13.5per cent | -2.7per cent |
| MIDWOOD | $1,070,493 | $1,686 | $1,217,988 | $1,689 | 13.8per cent | 0.2per cent |
| RIVERFRONT RESIDENCES | $822,758 | $1,333 | $938,352 | $1,287 | 14.0per cent | -3.5per cent |
| CLAVON | $1,107,800 | $1,634 | $1,269,921 | $1,662 | 14.6per cent | 1.7per cent |
| VERTICUS | $1,367,029 | $2,084 | $1,568,455 | $2,116 | 14.7per cent | 1.5per cent |
| THE BOTANY AT DAIRY FARM | $1,293,794 | $2,107 | $1,485,090 | $2,064 | 14.8per cent | -2.0per cent |
| DUNEARN 386 | $1,398,000 | $2,498 | $1,607,637 | $2,469 | 15.0per cent | -1.2per cent |
| TREASURE AT TAMPINES | $824,011 | $1,405 | $951,403 | $1,417 | 15.5per cent | 0.9per cent |
| NYON | $1,653,417 | $2,293 | $1,911,766 | $2,250 | 15.6per cent | -1.9per cent |
| LEEDON GREEN | $1,739,312 | $2,754 | $2,016,057 | $2,733 | 15.9per cent | -0.8per cent |
| THE LINQ @ BEAUTY WORLD | $1,279,767 | $2,204 | $1,485,133 | $2,225 | 16.0per cent | 1.0per cent |
| AFFINITY AT SERANGOON | $990,980 | $1,585 | $1,155,763 | $1,560 | 16.6per cent | -1.6per cent |
| GRAND DUNMAN | $1,695,281 | $2,533 | $1,978,029 | $2,553 | 16.7per cent | 0.8per cent |
| 8 HULLET | $2,268,852 | $3,427 | $2,682,927 | $3,368 | 18.3per cent | -1.7per cent |
| THE COMMODORE | $970,240 | $1,554 | $1,149,033 | $1,525 | 18.4per cent | -1.9per cent |
| HYLL ON HOLLAND | $1,544,124 | $2,600 | $1,828,842 | $2,647 | 18.4per cent | 1.8per cent |
| ONE BERNAM | $1,783,502 | $2,494 | $2,113,317 | $2,528 | 18.5per cent | 1.4per cent |
| SENGKANG GRAND RESIDENCES | $1,108,605 | $1,734 | $1,313,995 | $1,725 | 18.5per cent | -0.5per cent |
| JUNIPER HILL | $1,653,046 | $2,778 | $1,971,496 | $2,849 | 19.3per cent | 2.6per cent |
| PARC KOMO | $960,350 | $1,511 | $1,147,476 | $1,557 | 19.5per cent | 3.0per cent |
| JADESCAPE | $1,103,495 | $1,709 | $1,324,411 | $1,730 | 20.0per cent | 1.2per cent |
| FYVE DERBYSHIRE | $1,443,488 | $2,445 | $1,733,168 | $2,398 | 20.1per cent | -1.9per cent |
| PARC ESTA | $1,087,088 | $1,716 | $1,305,694 | $1,688 | 20.1per cent | -1.6per cent |
| VAN HOLLAND | $1,975,515 | $2,945 | $2,386,705 | $2,855 | 20.8per cent | -3.1per cent |
| 35 GILSTEAD | $1,462,800 | $2,645 | $1,772,747 | $2,537 | 21.2per cent | -4.1per cent |
| DAIRY FARM RESIDENCES | $1,003,226 | $1,587 | $1,216,799 | $1,681 | 21.3per cent | 5.9per cent |
| LIV @ MB | $1,640,432 | $2,452 | $1,990,053 | $2,433 | 21.3per cent | -0.8per cent |
| PETIT JERVOIS | $2,335,000 | $2,698 | $2,838,146 | $2,826 | 21.5per cent | 4.7per cent |
| ONE HOLLAND VILLAGE RESIDENCES | $1,860,883 | $2,696 | $2,270,627 | $2,718 | 22.0per cent | 0.8per cent |
| THE M | $1,557,197 | $2,508 | $1,908,348 | $2,542 | 22.6per cent | 1.3per cent |
| VERDALE | $1,075,024 | $1,752 | $1,321,205 | $1,802 | 22.9per cent | 2.8per cent |
| KENT RIDGE HILL RESIDENCES | $1,145,492 | $1,723 | $1,409,880 | $1,779 | 23.1per cent | 3.2per cent |
| MAYFAIR MODERN | $1,309,400 | $2,098 | $1,614,387 | $2,094 | 23.3per cent | -0.2per cent |
| WHISTLER GRAND | $896,940 | $1,456 | $1,108,107 | $1,445 | 23.5per cent | -0.8per cent |
| RV ALTITUDE | $1,330,900 | $3,016 | $1,654,800 | $2,707 | 24.3per cent | -10.2per cent |
| THE WOODLEIGH RESIDENCES | $1,085,586 | $1,871 | $1,361,107 | $1,961 | 25.4per cent | 4.8per cent |
| VIEW AT KISMIS | $902,667 | $1,747 | $1,135,954 | $1,724 | 25.8per cent | -1.3per cent |
| PENROSE | $976,565 | $1,512 | $1,254,890 | $1,701 | 28.5per cent | 12.5per cent |
| FORETT AT BUKIT TIMAH | $1,174,906 | $2,029 | $1,520,342 | $2,033 | 29.4per cent | 0.2per cent |
| PHOENIX RESIDENCES | $912,598 | $1,514 | $1,197,910 | $1,601 | 31.3per cent | 5.7per cent |
| THE HYDE | $1,950,498 | $2,822 | $2,569,490 | $2,994 | 31.7per cent | 6.1per cent |
| PARKSUITES | $1,641,318 | $2,116 | $2,550,000 | $2,173 | 55.4per cent | 2.7per cent |
| 3 CUSCADEN | $1,747,151 | $4,162 | $2,749,602 | $3,668 | 57.4per cent | -11.9per cent |
| ATLASSIA | $1,305,840 | $2,128 | $2,467,647 | $1,948 | 89.0per cent | -8.4per cent |
We can see that, except for Uptown @ Farrer and Ki Residences, the extra bathroom always costs more in quantum (but not necessarily price per square foot).
For these two projects, the higher prices for single-bathroom units mainly come down to timing; many of the single-bathroom units were transacted in a later sales phase than the two-bathroom units, hence the higher price point.
Differences in performance
Now we want to see the difference between gains or losses. Same as last time, we narrowed down the projects that had 2br 1ba and 2br 2ba and had at least 10 transactions:
| Project | 2BR 1BA | 2BR 2BA | Grand Total |
| AFFINITY AT SERANGOON | 18 | 36 | 54 |
| AVENUE SOUTH RESIDENCE | 4 | 10 | 14 |
| DAINTREE RESIDENCE | 1 | 16 | 17 |
| JADESCAPE | 11 | 35 | 46 |
| PARC CLEMATIS | 5 | 30 | 35 |
| PARC ESTA | 43 | 45 | 88 |
| PARK COLONIAL | 23 | 24 | 47 |
| RIVERFRONT RESIDENCES | 60 | 46 | 106 |
| STIRLING RESIDENCES | 39 | 63 | 102 |
| THE FLORENCE RESIDENCES | 7 | 62 | 69 |
| THE TAPESTRY | 16 | 16 | 32 |
| THE WOODLEIGH RESIDENCES | 6 | 14 | 20 |
| TREASURE AT TAMPINES | 40 | 42 | 82 |
| WHISTLER GRAND | 21 | 18 | 39 |
| Grand Total | 294 | 457 | 751 |
Volume of transactions
| 2 Bedroom Type | Average ($) | Average (per cent) | Annualised (per cent) | Volume |
| 2BR 1BA | $187,992 | 19.3per cent | 4.5per cent | 294 |
| 2BR 2BA | $235,731 | 20.5per cent | 5.0per cent | 457 |
Performance
The two bathroom units do perform better on average, but the difference is marginal; around half a percentage point. Do note that there are a lot more two-bathroom units being transacted though, but that could also just be the case of a bigger supply.
Next, we looked closer at differences within each project:
| Average Performance ($) | Average Performance (per cent) | Annualised Returns (per cent) | ||||
| Project | 1BR | 2BR | 1BR | 2BR | 1BR | 2BR |
| AFFINITY AT SERANGOON | $164,216 | $191,192 | 17.3per cent | 16.6per cent | 3.5per cent | 3.7per cent |
| AVENUE SOUTH RESIDENCE | $142,125 | $237,949 | 9.9per cent | 16.5per cent | 2.4per cent | 4.3per cent |
| DAINTREE RESIDENCE | $184,300 | $256,414 | 15.8per cent | 21.7per cent | 6.0per cent | 5.8per cent |
| JADESCAPE | $247,781 | $282,939 | 22.4per cent | 21.8per cent | 5.2per cent | 5.4per cent |
| PARC CLEMATIS | $225,400 | $258,655 | 20.5per cent | 22.2per cent | 5.3per cent | 5.9per cent |
| PARC ESTA | $252,451 | $317,953 | 23.5per cent | 24.5per cent | 5.7per cent | 6.2per cent |
| PARK COLONIAL | $197,512 | $175,140 | 17.4per cent | 14.2per cent | 4.0per cent | 3.2per cent |
| RIVERFRONT RESIDENCES | $149,676 | $203,219 | 18.4per cent | 21.7per cent | 3.9per cent | 4.6per cent |
| STIRLING RESIDENCES | $234,979 | $266,594 | 20.4per cent | 20.4per cent | 5.2per cent | 4.9per cent |
| THE FLORENCE RESIDENCES | $149,586 | $217,487 | 15.9per cent | 21.3per cent | 3.8per cent | 4.9per cent |
| THE TAPESTRY | $94,425 | $172,827 | 10.9per cent | 17.6per cent | 3.1per cent | 3.7per cent |
| THE WOODLEIGH RESIDENCES | $169,333 | $252,000 | 15.7per cent | 19.4per cent | 4.1per cent | 4.9per cent |
| TREASURE AT TAMPINES | $140,969 | $182,719 | 17.4per cent | 19.5per cent | 4.1per cent | 5.4per cent |
| WHISTLER GRAND | $235,842 | $255,291 | 27.6per cent | 23.6per cent | 6.5per cent | 6.1per cent |
The differences are marginal in most projects. We did see a more pronounced difference in Avenue South Residence, but the reason for this is not immediately clear and needs to be examined further.
The premium gap at launch
| New Sale | Sub Sale / Resale | ||||||
| Project | 1 Bathroom Avg. Price | 2 Bathroom Avg. Price | Premium Difference (per cent) | 1 Bathroom Avg. Price | 2 Bathroom Avg. Price | Premium Difference (per cent) | Difference |
| AFFINITY AT SERANGOON | $948,000 | $1,154,479 | 21.8per cent | $1,112,216 | $1,345,670 | 21.0per cent | -0.8per cent |
| AVENUE SOUTH RESIDENCE | $1,427,000 | $1,450,920 | 1.7per cent | $1,569,125 | $1,688,869 | 7.6per cent | 6.0per cent |
| DAINTREE RESIDENCE | $1,165,700 | $1,204,680 | 3.3per cent | $1,350,000 | $1,461,094 | 8.2per cent | 4.9per cent |
| JADESCAPE | $1,112,391 | $1,297,483 | 16.6per cent | $1,360,172 | $1,580,421 | 16.2per cent | -0.4per cent |
| PARC CLEMATIS | $1,098,200 | $1,168,433 | 6.4per cent | $1,323,600 | $1,427,089 | 7.8per cent | 1.4per cent |
| PARC ESTA | $1,073,767 | $1,290,800 | 20.2per cent | $1,326,218 | $1,608,753 | 21.3per cent | 1.1per cent |
| PARK COLONIAL | $1,144,179 | $1,264,689 | 10.5per cent | $1,341,691 | $1,439,829 | 7.3per cent | -3.2per cent |
| RIVERFRONT RESIDENCES | $816,914 | $935,109 | 14.5per cent | $966,590 | $1,138,327 | 17.8per cent | 3.3per cent |
| STIRLING RESIDENCES | $1,157,154 | $1,303,206 | 12.6per cent | $1,392,133 | $1,569,801 | 12.8per cent | 0.1per cent |
| THE FLORENCE RESIDENCES | $941,857 | $1,019,097 | 8.2per cent | $1,091,443 | $1,236,584 | 13.3per cent | 5.1per cent |
| THE TAPESTRY | $862,623 | $986,673 | 14.4per cent | $957,049 | $1,159,500 | 21.2per cent | 6.8per cent |
| THE WOODLEIGH RESIDENCES | $1,087,000 | $1,310,786 | 20.6per cent | $1,256,333 | $1,562,786 | 24.4per cent | 3.8per cent |
| TREASURE AT TAMPINES | $812,503 | $935,775 | 15.2per cent | $953,472 | $1,118,495 | 17.3per cent | 2.1per cent |
| WHISTLER GRAND | $855,320 | $1,084,747 | 26.8per cent | $1,091,161 | $1,340,039 | 22.8per cent | -4.0per cent |
Despite the marginal differences in performance, some developers do charge a rather large premium for the extra bathroom. Whistler Grand, The Woodleigh, and Parc Esta are the most notable, with a premium of above 20 per cent.
For Whistler Grand, this could be due to a large number of two-bedroom layouts, ranging from 503 sq ft to 700 sq ft, so the size difference beyond an added bathroom could account for the quantum difference. The same could apply to The Woodleigh, where 2B1B units are 570 sq ft, but the 2B2B units can go up to 721 sq ft.
This isn't true for Parc Esta, where 2B1B units are just as large as 2B2B units, or at least very close in size; so it's possible that the two bathroom units here were just transacted later in the sale process and at a higher price.
In general, there still doesn't seem to be strong evidence that the second bathroom is going to make for better performance. But on the flipside, we can also see that the premium for a second bathroom may not be that big for certain projects; so if you need it, it's possible to get it without paying over the top.
It's likely, however, that landlords will want the two-bathroom units as it's better for unrelated tenants. For homeowners, some may not want to trade extra living space for another bathroom.
As always, ultimately this matters based on your entry price — if the premium for a second bathroom is too big, it may not make as much sense from an investment standpoint.
ALSO READ: Upcoming executive condos that will MOP in 2024 and 2025
This article was first published in Stackedhomes.
