Is the Dream of Homeownership Becoming a Steeper Climb?
TLDR The article discusses the evolving trends in the Singaporean real estate market, focusing on the affordability and accessibility of...
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 …
The 5 Most Popular Types of Properties to Buy in Singapore
The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...
Read More
Top 5 Best Alternative Music Venues in Singapore
Singapore, a vibrant and bustling city-state, is known for its diverse culture and thriving arts scene. The city's love for...
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
Why More First-Time Buyers Are Picking Condos Over BTO Flats in 2025
TLDR In 2025, more first-time Singapore buyers are choosing condos over BTO flats. Key reasons include faster move-in times, better...
Read More
Will Your HDB Flat Provide For Your Retirement?
TLDR Singapore's property market presents challenges with high prices, particularly in private housing, while public housing remains relatively more affordable....
Read More
Is it Possible for the Government to Truly “Reclaim Your Home” in Singapore?
The Singaporean government possesses considerable authority to reclaim land, whether freehold or not, in accordance with the Land Acquisition Act....
Read More
Craving Dream Homes in the Urban Jungle: The Singaporean Dilemma Unveiled
TLDR The housing landscape in Singapore reflects evolving aspirations and desires, especially among the younger generation. Owning private property is...
Read More
The Enduring Logic: Why a 3-Room HDB Flat Might Still Be a Strategic Starting Point in 2025
TLDR A decade ago, starting with the smallest resale 3-room flat was recommended for quick property upgrading due to shorter...
Read More
5 Frequently Heard Sales Pitches from Agents Encouraging You to Choose a New Development Instead of a Resale Condo: How Accurate Are They?
TLDR While some agents may discourage resale condos due to personal incentives, the difference in profits between resale and new...
Read More
Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood
Singapore Living: 5 Must-Know Factors for Choosing the Perfect Neighborhood When it comes to purchasing a property in Singapore, the...
Read More
Navigating the Singapore Property Market as a Foreign Investor: What You Need to Know
Singapore, a thriving hub of business and commerce in Southeast Asia, boasts a highly developed economy and a robust real...
Read More
Top 5 Bakeries in Singapore for Fresh Bread and Pastries
Singapore, a melting pot of cultures and flavors, is well-known for its diverse culinary scene. Among the many gastronomic delights...
Read More
The Ultimate Checklist for Work-From-Home Homebuyers in Singapore: Beyond the Basics
TLDR Remote work has changed what makes an ideal home—buyers now need to prioritize productivity and well-being alongside location and...
Read More
Resale Viewing Do’s and Don’ts: Expert Advice from a Singapore Real Estate Agent
TLDR The blog post provides valuable insights for first-time buyers on navigating the resale property market in Singapore. It covers...
Read More
Powering The Lion City: The Top 5 Industries Driving Singapore’s Economy
Powering The Lion City: The Top 5 Industries Driving Singapore's Economy Singapore is widely recognized as one of the most...
Read More
Top 5 Parks and Nature Reserves to Visit in Singapore
Singapore, often referred to as the "Garden City," is a vibrant and diverse nation that has made significant strides in...
Read More
Buying a Mega Development Condo? Here are 5 Overlooked Issues You Should Know
TLDR In the world of mega-developments, living in a large condo with over 700 units can bring challenges like ongoing...
Read More
5 Points : Singapore’s Property Market vs. Stock Market: Which is the Better Investment Option?
Investing is an important aspect of personal finance and can be a valuable way to grow wealth over time. However,...
Read More
Why There’s No Perfect Time to Enter the Market
TLDR When it comes to property transactions, understanding the factors influencing rising prices is crucial. The pandemic has driven up...
Read More