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 …

Mandarin Top 5

5 Things to Know About the Singapore Property Tax System

Jayson Ang – June 18, 2023 –

5 Things to Know About the Singapore Property Tax System Here are 5 things you need to know about the...

Mandarin Top 5

The 5 Most Popular Types of Properties to Buy in Singapore

Jayson Ang – May 19, 2023 –

The 5 Most Popular Types of Properties to Buy in Singapore 1. Condominiums: Condos are popular among buyers because they...

All Blog Posts Buying Tips

6 Secrets Foreign Investors Are Rarely Told About Singapore’s Real Estate Market

Jayson Ang – January 6, 2023 –

TLDR The Singapore property market presents unique characteristics that foreign buyers should consider. From the high rate of homeownership to...

Mandarin Top 5

5 Reasons : Why Investing In Commercial Real Estate Can Offer Stable Long-Term Returns

Jayson Ang – June 26, 2024 –

Investing in commercial real estate has become an increasingly popular choice for investors seeking stable long-term returns. There are several...

All Buying Tips

What Is Cash Over Valuation in HDB (COV)

Jayson Ang – November 8, 2023 –

TLDR Cash Over Valuation (COV) in HDB resale flats occurs when the purchase price exceeds HDB's valuation. COV cannot be...

All Blog Posts Buying Tips

Which Is Better For You: A 99-Year Leasehold Or Freehold Property Tenure?

Jayson Ang – March 25, 2023 –

TLDR When it comes to the choice between leasehold and freehold properties in Singapore, several factors must be considered. Leasehold...

All Buying Tips Opinion

What Factors Contribute To Singapore’s Real Estate Market Exhibiting Less Volatility Than Other Major Cities?

Jayson Ang – November 12, 2023 –

TLDR The Singaporean real estate market has remained stable due to government cooling measures. These include Additional Buyer's Stamp Duty...

All Blog Posts Buying Tips

A Step-by-Step Guide To Upgrading From an HDB Flat To Your a Private Property

Jayson Ang – January 3, 2023 –

TLDR Understanding the complexities of upgrading from an HDB flat to a private property in Singapore involves selling your HDB...

All Buying Tips Opinion Selling Tips

Timing the Singapore Property Market: A Data-Driven Analysis

Jayson Ang – December 10, 2025 –

TLDR Historical data of Singapore’s property market shows seasonal trends: Q1 (January to March) often has price dips, making it...

All Buying Tips Opinion

Craving Dream Homes in the Urban Jungle: The Singaporean Dilemma Unveiled

Jayson Ang – May 10, 2024 –

TLDR The housing landscape in Singapore reflects evolving aspirations and desires, especially among the younger generation. Owning private property is...

Mandarin Top 5

Top 5 : Greatest Challenges That Investors Face In Singapore’s Real Estate Market

Jayson Ang – May 8, 2025 –

Singapore's real estate market is a dynamic and attractive investment landscape for both local and international investors. Known for its...

All Blog Posts Buying Tips

Discover the Benefits of a SORA Home Loan in 2023: Why Consider SORA Interest Rates

Jayson Ang – May 17, 2023 –

TLDR The article discusses the transition from SIBOR and SOR to SORA as the new benchmark rate in Singapore's banking...

Mandarin Top 5

Top 5 Art Galleries in Singapore for Contemporary Art

Jayson Ang – May 24, 2024 –

Singapore, known for its modern architecture and vibrant culture, has a thriving art scene that showcases the best of contemporary...

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 Surprising Benefits of Investing in Singapore Real Estate for Foreigners

Jayson Ang – October 27, 2024 –

Singapore, a thriving city-state in Southeast Asia, has become an attractive destination for foreign investors looking to diversify their investment...