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8 Views· 30 August 2022

Are 1 Bedroom Units A Good Investment? (Analysing 3,834 Transactions)

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You probably won't be surprised to hear that 1 bedroom units are usually the first to sell out. To give you examples, recent new launches like Midtown Modern (90% of 1 and 2 bedroom units sold at launch), Irwell Hill Residences sold over 50% of its units (81% of its units are 1 and 2 bedroom), and One-North Eden on the weekend – selling out its 1 and 2 bedroom units by 10am.

Do note:

We restricted our findings to units of 600 sq. ft. or below; units of this size would be considered a one-bedder today. We are looking at size because the term “one-bedder” has changed over time; for old condos there are even 900+ sq. ft. units that are labelled “one-bedders”.

We have also kept to transactions dated 14 January 2011 or later. This is when the Sellers Stamp Duty (SSD) was imposed. Transactions before this date could have been sub-sales (e.g., buying and selling the unit before it’s even completed), which would distort the view of potential returns.

Here are some of our key findings:

- Prime region 1 bedroom units fare the worst for gains
- There’s continued evidence that 1 bedroom units have superior yields
- Returns can get worse over longer holding periods
- Leasehold has generally outperformed freehold
- Smaller 1 bedroom units generally lose more
- Overall, profitable transactions significantly outnumber unprofitable ones

For more details, please visit: https://stackedhomes.com/edito....rial/are-1-bedroom-u

Chapters:
0:00 - Intro
1:00 - #1 - Prime Area 1-Bedroom Has The Highest Unprofitable Transactions
2:23 - #2 - 1-Bedroom Units Have Superior Rental Yields
3:12 - #3 - Leasehold Tends To Outperform Freehold
4:25 - #4 - Smaller 1-Bedroom Units Do Worse In Capital Gains
5:36 - #5 - Profitable Transactions Outweigh Unprofitable Transactions
7:18 - What Does This Mean Moving Forward?

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Stacked is an online editorial aimed at helping Singapore home buyers, sellers and renters make better decisions. By regularly conducting research and publishing our findings, we hope to give our readers a much better perspective on buying, selling or renting Singapore real estate.

Editorially independent, our articles are published in-house and do not receive sponsorship. We hope to provide unbiased, reliable content that our readers can use.

#Stackedopinions #propertyinvestment #realestatesingapore

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