Your search results

The Rise of New Launch 2-Bedroom Condos: Why Homebuyers are Prioritizing Them Over Resale Options in 2025

Posted by Jayson Ang on May 27, 2026

| All, Buying Tips, Opinion, Selling Tips

| 0

TLDR

Two-bedroom condominiums are shifting from primarily rental investments to popular family homes, especially among small families and HDB upgraders, due to rising home prices forcing size compromises. New launch two-bedroom units priced around $1.8 to $2 million attract more buyers than cheaper, often larger resale two-bedrooms ($1.4 to $1.6 million), largely due to layout efficiency, modern designs, and market perception. However, as new launches focus more on the pricier Core Central Region (CCR), buyers may turn to resale units, which could see increased demand soon. Limited resale supply and higher taxes on investment properties also affect market dynamics. While resale units offer more space and quicker move-ins, their layouts tend to be less efficient than newer projects. Buyers and sellers should consider these evolving trends carefully, as the two-bedroom condo is gaining acceptance as a family-sized home amid current pricing pressures.

The perception of two-bedroom condominiums is undergoing a significant transformation in the current property market. Once primarily viewed as rental assets, they are now increasingly seen as versatile units, even viable family homes for smaller households. This shift is partly driven by rising home prices, which force some buyers to compromise on size. However, a curious trend has emerged: despite budget constraints, interest is heavily concentrated on new launch two-bedroom units, often overlooking more affordable and sometimes larger resale alternatives. This analysis explores the reasons behind this preference and what homebuyers in 2025 might be missing.

The Growing Appeal of New Launch 2-Bedrooms

A decade ago, two-bedroom units, like today’s one-bedroom units, were predominantly considered investment properties for rental income. However, recent new launches have seen a surge in owner-occupier interest for two-bedroom units. Real estate agents report that small families are increasingly opting for new two-bedroom, two-bathroom units, typically around 700 sq. ft., priced between $1.8 million and $2 million. This trend was evident in recent launches like Parktown Residence, The Orie, and Lentor Central Residences, where two-bedroom units were among the first to be snapped up.

According to realtors, the primary driver is price. The most comfortable quantum for HDB upgraders currently falls within the $1.8 million to $2.1 million range, which aligns with the pricing of new launch two-bedroom units. In contrast, three-bedroom units typically start from $2.4 million and above.

The Puzzle: Why Not Resale 2-Bedrooms?

Given this focus on budget, the question arises: why aren’t more affordable (and often more spacious) resale two-bedroom units attracting similar interest? Resale two-bedroom units can often be found in the $1.4 million to $1.6 million range, depending on the location and project. Furthermore, resale properties offer the immediate benefit of earlier move-in dates, potentially allowing buyers to sell their existing HDB flat later, minimizing the disruption of moving twice.

Discussions with realtors and homeowners point to several factors:

1. Anticipated Shift as OCR New Launch Stock Depletes: One explanation is that a tilt towards resale two-bedroom units is imminent. The tipping point is likely to occur in the coming months as the new launch market shifts its focus to the Core Central Region (CCR). Of the approximately 30 new launches expected this year, more than half (14) will be in the CCR. Upcoming launches in River Valley and Orchard Boulevard will follow Aurea (formerly Golden Mile) this month. As the market moves into the pricier CCR, it will severely test the limits of the $2 million+ quantum. While the price gap between the RCR and CCR has narrowed, CCR launches will fundamentally be more expensive than OCR counterparts. This inevitable price push could force upgraders, priced out of new CCR launches and lacking other OCR options, to turn to existing resale two-bedroom units. This signals a potential surge in buyer interest for sellers of resale two-bedroom, two-bathroom units.

2. Lag in Price Perception: Current market perception still views resale two-bedroom units at $1.4 million as expensive, especially when contrasting them with their historical perception as cheap investment units. Around a decade ago, $1.6 million was the going rate for many three-bedroom condos, making current two-bedroom resale prices seem disproportionately high to some buyers. However, realtors anticipate a shift in this perception. The high prices of new launch two-bedroom units, particularly with the entry of CCR projects, are expected to make existing resale two-bedroom units appear increasingly reasonable over the next few months. As this paradigm shift fully settles, resale two-bedroom listings could see a significant increase in attention.

3. Limited Resale Supply: An overarching issue affecting the entire market is the current scarcity of resale supply. Due to the higher property prices post-COVID, many potential sellers are hesitant to part with their units, concerned about the cost of a replacement property. Additionally, the Additional Buyer’s Stamp Duty (ABSD) plays a role, especially for investment properties. Many one- and two-bedroom units were previously acquired by investors seeking rental gains. However, investors who purchased these units as a second property now face a higher ABSD rate (20% as of 2023, compared to 12% after the 2018 cooling measures). Selling such a unit might incur higher ABSD on a replacement property, creating a psychological barrier unless the investor decides to exit the rental market entirely. This limited supply, however, bodes well for those looking to sell a resale two-bedroom unit in the near future, as it could mean a larger pool of prospective buyers.

4. Less Efficient Layouts in Older Resale Condos: While generalization is difficult, newer two-bedroom units, particularly those categorized as “post-harmonization projects” (like Lentor Mansion, the first of its kind), offer more efficient layouts. These designs avoid space-wasting features common in older, pre-harmonization resale projects, such as large planter boxes, bay windows, and oversized air-con ledges, which developers used to maximize profits at the expense of liveable space. Newer two-bedroom units also frequently utilize “dumbbell layouts,” where bedrooms flank the living/dining area, minimizing wasted corridor space. (While some older projects do feature dumbbell layouts, it’s crucial to check specific floor plans.) Despite this, some homebuyers are drawn to the raw square footage of older resale condos, finding it attractive when trying to fit a family into a two-bedroom unit.

In conclusion, while the demand for resale two-bedroom units may be just around the corner, it appears we are entering an era where the two-bedroom unit is increasingly accepted as family-sized. Given the current quantum of property prices, it is anticipated that more upgraders will be compelled to consider this route.

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.

You May Also Like …

All Buying Tips

Can Your HDB Flat Safeguard Your Retirement?

Jayson Ang – December 7, 2022 –

TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...

Mandarin Top 5

Top 5 Mistakes to Avoid When Investing in Singapore Real Estate

Jayson Ang – October 29, 2024 –

Investing in Singapore's real estate market can be a lucrative venture, given the city-state's status as a global financial hub...

All Selling Tips

Unlock The Secrets To Successfully Selling Your Home In Just 7 Simple Steps!

Jayson Ang – August 1, 2023 –

TLDR When preparing to sell your house in Singapore, research the average prices in your area to set a realistic...

Mandarin Top 5

5 Reasons : The Benefits Of Investing In A Property With Good Access To Healthcare Facilities In Singapore

Jayson Ang – June 28, 2024 –

Investing in a property with good access to healthcare facilities in Singapore offers numerous benefits for both homeowners and investors....

All Buying Tips Opinion

I Wouldn’t Rely Too Heavily On Discounts Related To ABSD This Year

Jayson Ang – February 28, 2025 –

TLDR The ABSD discount arises when developers approach their five-year deadline to sell 90% of units, facing a 40% penalty...

Mandarin Top 5

Top 5 : Best Themed Cafes in Singapore

Jayson Ang – November 15, 2024 –

Singapore, a vibrant and diverse city, is known for its eclectic mix of cultures, cuisines, and attractions. Among the many...

Mandarin Top 5

Top 5 : Best Street Art Murals in Singapore

Jayson Ang – December 17, 2024 –

Singapore, a vibrant and multicultural city-state, is not only known for its iconic landmarks and delicious cuisine but also for...

All Opinion

What’s Needed For Singapore To Lift Those Cooling Measures?

Jayson Ang – February 2, 2024 –

TLDR The blog post discusses the recent relaxation of real estate restrictions in Hong Kong, contrasting with Singapore's stricter regulations....

Mandarin Top 5

5 Reasons Why Districts 9 and 10 are the Next Big Thing in Singapore Real Estate

Jayson Ang – March 2, 2024 –

Singapore is renowned for its thriving real estate market, with many desirable neighborhoods and top-notch properties. However, when it comes...

All Buying Tips

Should Foreign Buyers Be Deterred By the 30% ABSD?

Jayson Ang – December 7, 2022 –

TLDR Foreign buyers interested in private residential properties in Singapore is a common sight due to the country's positive reputation...

Mandarin Top 5

Top 5 Reasons : Why Jayson Ang is the Best Property Agent in Singapore. And Why You Should Engage Him Today

Jayson Ang – March 9, 2024 –

In the bustling city-state of Singapore, the real estate market is highly competitive and constantly evolving. Finding the perfect property...

Mandarin Top 5

5 Reasons Why Condos Are The Best Real Estate Investment in Singapore

Jayson Ang – March 25, 2024 –

Investing in a condo in Singapore is a popular choice for both locals and foreigners. Condominiums offer a range of...

Mandarin Top 5

Top 5 : Benefits of Investing in Newer vs. Older Singapore Property Market Condos for International Buyers

Jayson Ang – January 4, 2025 –

Singapore's property market has always been an attractive investment option for international buyers, thanks to its stable economy, strategic location,...