Unveiling the Truth: Why Freehold is Not Always the Optimal Choice for Property Investment
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TLDR
Boutique condos, with fewer than 100 units, are known for price fluctuations due to infrequent transactions and higher upkeep costs. Despite challenges, they attract buyers seeking exclusivity. From 2014 to 2024, notable projects like LA SUISSE and LE CONNEY PARK showed annualized returns between 6.8% and 1.5%. Districts 10 and 15 emerged as top performers, with significant activity in Katong/Joo Chiat. Larger units (over 1,400 sq ft) yielded higher profits but had lower trading volumes. Challenges include limited market presence and smaller developers. Individual circumstances dictate whether to buy or sell now.
Boutique condos stand out as a unique and specialized purchase. With a limited number of units, usually no more than 100 and sometimes as few as a mere dozen, these properties are notorious for their fluctuating nature.
The rarity of transactions makes even a single outlier capable of significantly skewing prices in either direction. On top of that, the upkeep costs are typically higher due to the small unit count.
Despite these challenges, the allure of exclusivity draws in certain individuals, leading them to ask the question: where can I discover a lucrative boutique condo? In pursuit of the answer, we embarked on a journey to explore some of the most triumphant boutique condos and unearth valuable insights.
Gains And Losses Of Boutique Condos
Spanning from 2014 to 2024 and showcasing a minimum of 5 noteworthy buy/sell transactions:
| Projects | District | Planning Area | No. of Buy/Sell Tnx | Avg. Annualised (%) |
| LA SUISSE | 11 | Bukit Timah | 5 | 6.8% |
| LE CONNEY PARK | 15 | Bedok | 6 | 5.0% |
| CITY LOFT | 8 | Kallang | 6 | 4.8% |
| MABELLE | 15 | Bedok | 8 | 4.7% |
| THE PRINCETON | 10 | Tanglin | 6 | 4.7% |
| THE BALE | 15 | Bedok | 5 | 4.6% |
| VIENTO | 14 | Geylang | 6 | 4.5% |
| THE MEDLEY | 15 | Bedok | 5 | 4.4% |
| THE SPINNAKER | 11 | Novena | 5 | 4.3% |
| EVELYN MANSIONS | 11 | Novena | 5 | 4.1% |
| AXIS @ SIGLAP | 15 | Bedok | 6 | 3.8% |
| ONE TREE HILL RESIDENCE | 10 | River Valley | 5 | 3.7% |
| BLISS LOFT | 12 | Novena | 5 | 3.7% |
| PRESTIGE LOFT | 15 | Bedok | 5 | 3.5% |
| THE VUE | 19 | Serangoon | 5 | 3.3% |
| THE GLACIER | 15 | Bedok | 5 | 3.1% |
| DAISY SUITES | 13 | Serangoon | 5 | 2.9% |
| MAYFAIR RESIDENCES | 15 | Bedok | 7 | 2.6% |
| EDENZ SUITES | 14 | Geylang | 5 | 2.4% |
| THE SILVER FIR | 15 | Geylang | 5 | 2.2% |
| RESIDENCES 88 | 14 | Bedok | 5 | 2.1% |
| LAVERNE’S LOFT | 15 | Bedok | 6 | 2.1% |
| THE SANCTUARY @ GEYLANG | 14 | Geylang | 6 | 2.0% |
| PALMERA RESIDENCE | 15 | Bedok | 6 | 2.0% |
| DE CENTURION | 15 | Kallang | 5 | 1.9% |
| VIIO @ BALESTIER | 12 | Novena | 9 | 1.9% |
| CITIGATE RESIDENCE | 8 | Kallang | 5 | 1.9% |
| SUITES @ KOVAN | 19 | Hougang | 6 | 1.8% |
| NATURALIS | 15 | Bedok | 6 | 1.8% |
| LA FLEUR | 14 | Geylang | 6 | 1.7% |
| THE NAVIAN | 14 | Bedok | 11 | 1.7% |
| LOFT 33 | 14 | Geylang | 11 | 1.6% |
| SUITES @ EUNOS | 14 | Bedok | 5 | 1.6% |
| SUITES @ SIMS | 14 | Geylang | 6 | 1.5% |
| 24 ONE RESIDENCES | 5 | Queenstown | 5 | 1.5% |
| BERKELEY RESIDENCES | 15 | Bedok | 9 | 1.5% |
| FLORAVILLE | 28 | Ang Mo Kio | 10 | 1.5% |
| LEICESTER SUITES | 13 | Toa Payoh | 6 | 1.5% |
| DEVONSHIRE 12 | 9 | River Valley | 5 | 1.4% |
| THE BENTLY RESIDENCES@KOVAN | 19 | Hougang | 11 | 1.3% |
| ASCENT @ 456 | 12 | Novena | 11 | 1.3% |
| 8 FARRER SUITES | 8 | Kallang | 5 | 1.2% |
| PARK RESIDENCES KOVAN | 19 | Hougang | 5 | 1.2% |
| THE COTZ | 15 | Bedok | 9 | 1.1% |
| HILBRE28 | 19 | Hougang | 7 | 1.1% |
| 183 LONGHAUS | 20 | Bishan | 7 | 0.9% |
| MULBERRY TREE | 11 | Novena | 6 | 0.9% |
| REZI 35 | 14 | Geylang | 5 | 0.9% |
| LOFT@HOLLAND | 10 | Bukit Timah | 6 | 0.9% |
| PARC SOMME | 8 | Kallang | 5 | 0.8% |
| TREASURES@G6 | 14 | Geylang | 11 | 0.7% |
| TREASURES @ G20 | 14 | Geylang | 6 | 0.7% |
| VETRO | 12 | Kallang | 5 | 0.7% |
| R MAISON | 13 | Serangoon | 7 | 0.6% |
| WILKIE 80 | 9 | Rochor | 5 | 0.6% |
| SUNNYVALE RESIDENCES | 15 | Bedok | 7 | -0.4% |
| THE ASANA | 10 | Bukit Timah | 9 | -0.5% |
| 28 RC SUITES | 8 | Rochor | 6 | -0.6% |
The boutique condo market may boast an average annualised gain of 3.57 per cent, aligning with the private property sector. However, don’t be deceived by the word ‘average’ when outliers like One Robin (with a staggering 49 per cent annualised gain) and Casero @ Dunman (suffering an unfortunate 11.1 per cent loss) prove otherwise. To truly understand this segment, let’s take a district-based approach and see how boutique condos fare.
| District | Breakeven | Gain | Loss | Grand Total | Total Volume |
| 27 | 9.5% | 9.5% | 1 | ||
| 21 | 6.3% | 6.3% | 11 | ||
| 26 | 5.6% | 5.6% | 1 | ||
| 3 | 5.0% | 5.0% | 4 | ||
| 10 | 5.6% | -2.9% | 5.0% | 147 | |
| 15 | 0 | 4.6% | -2.6% | 4.2% | 401 |
| 16 | 4.4% | -0.6% | 4.1% | 22 | |
| 17 | 4.4% | -1.7% | 4.0% | 17 | |
| 4 | 3.8% | 3.8% | 3 | ||
| 19 | 0 | 4.1% | -1.1% | 3.5% | 111 |
| 11 | 3.9% | -3.9% | 3.5% | 85 | |
| 9 | 0 | 3.8% | -2.4% | 3.5% | 79 |
| 23 | 4.8% | -2.9% | 3.2% | 5 | |
| 12 | 3.8% | -1.7% | 3.1% | 81 | |
| 1 | 2.9% | 2.9% | 1 | ||
| 13 | 2.8% | -1.6% | 2.7% | 29 | |
| 5 | 2.9% | -1.3% | 2.6% | 28 | |
| 14 | 0 | 3.0% | -1.1% | 2.5% | 186 |
| 8 | 3.6% | -3.8% | 1.7% | 75 | |
| 7 | 1.6% | 1.6% | 1 | ||
| 20 | 0 | 1.9% | -2.1% | 1.5% | 13 |
| 28 | 1.7% | -0.4% | 1.5% | 10 | |
| 6 | -0.4% | -0.4% | 1 | ||
| Grand Total | 0 | 4.1% | -2.2% | 3.6% | 1312 |
Above, it is evident that units 10 and 15 reign supreme in the realm of boutique developments. District 15, in particular, boasts an abundance of boutique condos nestled in the vibrant Katong/Joo Chiat vicinity.
This bustling neighborhood yields a higher number of transactions, which could account for its superior annualized returns. However, we must note that Vibes @ East Coast and Casero @ Dunman, with their respective losses of 26.9% and 11.1%, deviate from this trend due to their short holding periods. It is fair to assume that these properties stand as anomalies, perhaps influenced by unique circumstances of the sellers.
One could attribute this success of District 15’s boutique condos to the recent gentrification of the once-notorious Joo Chiat stretch, infamous for its abundance of massage parlors and shady bars. As the area underwent a facelift, the value of these boutique developments saw a significant upturn.
Neighboring District 14, encompassing Eunos to Paya Lebar, also boasts a commendable transaction volume, albeit with a slightly lower annualized return. This district is home to older properties, with a higher percentage likely rented out. While the dense urban setting may not appeal to all families, it positions these properties strategically to benefit from the nearby Paya Lebar hub.
Finally, District 10, boasting the affluent neighborhoods of River Valley, Tanglin, and Holland V, serves as the ideal location for boutique projects. While there is no dearth of high-end condos in this area, discerning buyers gravitate towards a sense of exclusivity and privacy, which boutique developments expertly provide.
Looking At Results By Size
It is evident that boutique condos thrive when designed with larger units, yet this advantage is not limited to this specific type of housing.
| Size Category | Average Profit | Average % Profit | Average Annualised Returns (%) |
| Less Than 500 sq ft | $80,619.02 | 12.81% | 2.44% |
| Less Than 900 sq ft | $147,930.82 | 15.34% | 2.92% |
| Less Than 1,400 sq ft | $272,479.32 | 20.69% | 3.91% |
| More Than 1,400 sq ft | $489,416.63 | 21.84% | 4.27% |
| Grand Total | $227,220.66 | 17.80% | 3.39% |
Take note that while profits increase with larger units, the trading volume of these mammoth spaces remains relatively low. This can be attributed to their elusive nature, making them a coveted commodity. This, in turn, may play a pivotal role in achieving favorable returns.
Furthermore, our musings lead us to believe that these grandiose units are more commonly snatched up by pure owner-occupiers (as landlords tend to shy away from such extensive spaces, considering the maximum number of tenants and the potential dip in rental yields). After all, for homeowners, the comfort of their loved ones outweighs any potential resale gains.
To add to this, owner-occupiers are known to have a longer investment horizon, which could explain their significant gains. It’s safe to say, bigger units not only offer more living space but also deliver bigger payoffs in the long run.
Uncovering the Hidden Challenges of Boutique Condos: Beyond Price Volatility
Not only are boutique condos physically compact and discreet, but their market presence is also comparably modest. These exclusive abodes, often challenging to promote upon their debut, are crafted by smaller developers with tighter budgets, relying heavily on the networks and word-of-mouth of agents. Moreover, trust becomes a factor as these boutique projects may bear unfamiliar developer names. Unlike the prominent industry giants such as CapitaLand, GuocoLand, and CDL, who dominate full-scale developments, buyers are met with a sense of unease when faced with boutique options.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
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