Snag a Sentosa Condo for 40% Off? Should You Consider It!
TLDR The Residences at W Singapore Sentosa Cove has slashed prices by over 40%, but there are important details to...
Read More
The Rise of New Launch 2-Bedroom Condos: Why Homebuyers are Prioritizing Them Over Resale Options in 2025
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 …
Property Market: Buyer’s Paradise or Seller’s Dreamland?
TLDR The property market in Singapore post-Covid has seen a surge in HDB and private property prices, with a noticeable...
Read More
Is Price Per Square Foot (PSF) Still a Reliable Metric in Singapore’s Property Market?
TLDR Price Per Square Foot (PSF) is increasingly a poor measure of property value in Singapore due to regulatory changes...
Read More
Beyond Marina Bay Sands: Uncovering Singapore’s 5 Little-Known Secrets
Beyond Marina Bay Sands: Uncovering Singapore's 5 Little-Known Secrets Singapore is a small country with a rich history and culture....
Read More
Single, Over 35, and Searching for a Home? Here’s Your Guide to Choosing Between an HDB and a Condo!
At the age of 35, a single Singaporean starts a significant year, highlighted by the long-awaited chance to buy their...
Read More
Top 5 : Benefits of Investing in Older vs. Newer Singapore Property Market Condos for International Buyers?
Singapore's property market has long been an attractive investment destination for international buyers, offering a stable and well-regulated environment with...
Read More
Top 5 : Best Quirky Museums in Singapore
Singapore, a vibrant and diverse city-state, is known for its rich history, cultural heritage, and modern attractions. While the city...
Read More
The Evolving Landscape of HDB Upgrading in Post-COVID Singapore
TLDR The post-COVID Singapore property market has grown more complex, especially for HDB upgraders facing higher interest rates, cooling measures,...
Read More
Should You Buy An Older Resale HDB Flat If You Are In Your 20s/30s?
TLDR Younger Singaporeans are increasingly drawn to older resale HDB flats due to their larger size and central locations, without...
Read More
Neighbourhood Estate Guide: Is Holland Village the Most Charming and Relaxed of HDB Estates?
According to the 2014 master plan, Holland Village was given the prestigious title of an "identity node," confirming its status...
Read More
Beyond the Premium: Why Some Singaporean Homebuyers Steer Clear of Top-Floor Properties
TLDR Top-floor condominium units in Singapore often come at a premium price and are associated with luxury, but they have...
Read More
Evaluating Property Investments: Pros and Cons to Keep in Mind
TLDR: Key Takeaways from the Blog Post Singapore's real estate market offers both pros and cons for investors. The advantages...
Read More
Top 5 Singapore Must-Dos: Unforgettable Experiences Await!
Singapore, a vibrant city-state known for its diverse culture and world-class attractions, offers an array of unforgettable experiences for both...
Read More
Should Foreign Buyers Be Deterred By the 30% ABSD?
TLDR Foreign buyers interested in private residential properties in Singapore is a common sight due to the country's positive reputation...
Read More
7 Essential Steps to Sell Your House in Singapore
TLDR When preparing to sell your house, research the average prices in your area for a realistic figure. Consider factors...
Read More
How To Avoid Top 5 Common Investment Pitfalls When Investing In Singapore Property
When investing in Singapore's property market, it is crucial to be aware of the common pitfalls that can lead to...
Read More
5 Essential Tips for Renting Property in Singapore as a Foreigner: A Guide for Newcomers
TLDR Renting property in Singapore as a foreigner can be challenging due to the high cost of living. To navigate...
Read More
Top 5 Tips : Spot These Warning Signs Before Making a Home Purchase!
Purchasing a home is one of the most significant financial decisions you will make in your lifetime. It's essential to...
Read More
Top 5 Trends And Developments That Will Shape Singapore’s Property Market In The Next 5 Years
TLDR Singapore’s property market is set for significant transformation over the next five years, driven by rapid proptech adoption, growing...
Read More
Top 5 Reasons : Why Investing in Singapore’s Property Market Is a Smart Move for Millennials – Expert Analysis!
In recent years, Singapore has emerged as a global financial hub and a prime destination for property investments. The city-state's...
Read More