Analysis
4 min read
For buyers looking at an investment property, a 2-bedroom unit is a typical sweet spot – in terms of rentability and a more achievable quantum. But in recent years, the availability of a smaller 2-bedroom unit in the form of a 2 bed 1 bath meant that the decision becomes more complicated. Is it better to buy the cheaper unit? Or would the limitation of just 1 bathroom make it a harder exit in the future?
Depending on your lifestyle, having one extra bathroom could make a big difference. Case in point: tenant roommates who refuse to share bathrooms, because no one wants to wait to shower when both need to be at work by 7 am.
We last did this analysis in early 2023, so here’s an update to see if the situation has changed one year forward:
How much more does the extra bathroom cost?
Here’s a side-by-side comparison of how the prices differ across projects:
| 2BR 1BA | 2BR 2BA | Difference | ||||
| Projects | Avg $ | Avg $PSF | Avg Price | Avg $PSF | Price | $PSF |
| KI RESIDENCES AT BROOKVALE | $1,436,700 | $2,053 | $1,374,419 | $1,809 | -4.3% | -11.9% |
| UPTOWN @ FARRER | $1,063,980 | $2,038 | $1,051,296 | $1,953 | -1.2% | -4.2% |
| PARC CLEMATIS | $1,176,456 | $1,688 | $1,175,991 | $1,630 | 0.0% | -3.5% |
| THE FLORENCE RESIDENCES | $1,050,461 | $1,636 | $1,075,381 | $1,547 | 2.4% | -5.4% |
| AMBER PARK | $1,719,869 | $2,536 | $1,789,808 | $2,462 | 4.1% | -2.9% |
| URBAN TREASURES | $1,294,746 | $1,968 | $1,348,903 | $1,842 | 4.2% | -6.4% |
| KOPAR AT NEWTON | $1,568,570 | $2,557 | $1,640,769 | $2,382 | 4.6% | -6.8% |
| AVENUE SOUTH RESIDENCE | $1,428,720 | $2,125 | $1,516,691 | $2,117 | 6.2% | -0.4% |
| PASIR RIS 8 | $1,203,567 | $1,687 | $1,284,721 | $1,645 | 6.7% | -2.5% |
| THE JOVELL | $899,741 | $1,366 | $963,139 | $1,336 | 7.0% | -2.2% |
| BARTLEY VUE | $1,332,846 | $2,030 | $1,441,054 | $1,960 | 8.1% | -3.4% |
| SKY EDEN@BEDOK | $1,420,313 | $2,129 | $1,546,333 | $2,161 | 8.9% | 1.5% |
| DAINTREE RESIDENCE | $1,121,262 | $1,736 | $1,226,141 | $1,676 | 9.4% | -3.4% |
| IRWELL HILL RESIDENCES | $1,662,622 | $2,693 | $1,822,369 | $2,732 | 9.6% | 1.4% |
| LENTOR MODERN | $1,468,620 | $2,166 | $1,620,244 | $2,214 | 10.3% | 2.2% |
| ROYALGREEN | $1,789,497 | $2,742 | $1,984,084 | $2,738 | 10.9% | -0.2% |
| MIDTOWN MODERN | $1,702,396 | $2,743 | $1,889,011 | $2,619 | 11.0% | -4.5% |
| AMO RESIDENCE | $1,421,739 | $2,150 | $1,579,163 | $2,126 | 11.1% | -1.1% |
| THE TAPESTRY | $869,645 | $1,422 | $969,645 | $1,378 | 11.5% | -3.1% |
| ONE PEARL BANK | $1,762,907 | $2,520 | $1,968,329 | $2,390 | 11.7% | -5.2% |
| PARK COLONIAL | $1,147,563 | $1,807 | $1,293,829 | $1,882 | 12.7% | 4.2% |
| STIRLING RESIDENCES | $1,175,613 | $1,817 | $1,326,002 | $1,880 | 12.8% | 3.5% |
| GRANGE 1866 | $2,058,000 | $2,897 | $2,323,426 | $2,935 | 12.9% | 1.3% |
| FOURTH AVENUE RESIDENCES | $1,507,303 | $2,347 | $1,707,306 | $2,425 | 13.3% | 3.3% |
| THE WATERGARDENS AT CANBERRA | $1,001,338 | $1,494 | $1,136,302 | $1,454 | 13.5% | -2.7% |
| MIDWOOD | $1,070,493 | $1,686 | $1,217,988 | $1,689 | 13.8% | 0.2% |
| RIVERFRONT RESIDENCES | $822,758 | $1,333 | $938,352 | $1,287 | 14.0% | -3.5% |
| CLAVON | $1,107,800 | $1,634 | $1,269,921 | $1,662 | 14.6% | 1.7% |
| VERTICUS | $1,367,029 | $2,084 | $1,568,455 | $2,116 | 14.7% | 1.5% |
| THE BOTANY AT DAIRY FARM | $1,293,794 | $2,107 | $1,485,090 | $2,064 | 14.8% | -2.0% |
| DUNEARN 386 | $1,398,000 | $2,498 | $1,607,637 | $2,469 | 15.0% | -1.2% |
| TREASURE AT TAMPINES | $824,011 | $1,405 | $951,403 | $1,417 | 15.5% | 0.9% |
| NYON | $1,653,417 | $2,293 | $1,911,766 | $2,250 | 15.6% | -1.9% |
| LEEDON GREEN | $1,739,312 | $2,754 | $2,016,057 | $2,733 | 15.9% | -0.8% |
| THE LINQ @ BEAUTY WORLD | $1,279,767 | $2,204 | $1,485,133 | $2,225 | 16.0% | 1.0% |
| AFFINITY AT SERANGOON | $990,980 | $1,585 | $1,155,763 | $1,560 | 16.6% | -1.6% |
| GRAND DUNMAN | $1,695,281 | $2,533 | $1,978,029 | $2,553 | 16.7% | 0.8% |
| 8 HULLET | $2,268,852 | $3,427 | $2,682,927 | $3,368 | 18.3% | -1.7% |
| THE COMMODORE | $970,240 | $1,554 | $1,149,033 | $1,525 | 18.4% | -1.9% |
| HYLL ON HOLLAND | $1,544,124 | $2,600 | $1,828,842 | $2,647 | 18.4% | 1.8% |
| ONE BERNAM | $1,783,502 | $2,494 | $2,113,317 | $2,528 | 18.5% | 1.4% |
| SENGKANG GRAND RESIDENCES | $1,108,605 | $1,734 | $1,313,995 | $1,725 | 18.5% | -0.5% |
| JUNIPER HILL | $1,653,046 | $2,778 | $1,971,496 | $2,849 | 19.3% | 2.6% |
| PARC KOMO | $960,350 | $1,511 | $1,147,476 | $1,557 | 19.5% | 3.0% |
| JADESCAPE | $1,103,495 | $1,709 | $1,324,411 | $1,730 | 20.0% | 1.2% |
| FYVE DERBYSHIRE | $1,443,488 | $2,445 | $1,733,168 | $2,398 | 20.1% | -1.9% |
| PARC ESTA | $1,087,088 | $1,716 | $1,305,694 | $1,688 | 20.1% | -1.6% |
| VAN HOLLAND | $1,975,515 | $2,945 | $2,386,705 | $2,855 | 20.8% | -3.1% |
| 35 GILSTEAD | $1,462,800 | $2,645 | $1,772,747 | $2,537 | 21.2% | -4.1% |
| DAIRY FARM RESIDENCES | $1,003,226 | $1,587 | $1,216,799 | $1,681 | 21.3% | 5.9% |
| LIV @ MB | $1,640,432 | $2,452 | $1,990,053 | $2,433 | 21.3% | -0.8% |
| PETIT JERVOIS | $2,335,000 | $2,698 | $2,838,146 | $2,826 | 21.5% | 4.7% |
| ONE HOLLAND VILLAGE RESIDENCES | $1,860,883 | $2,696 | $2,270,627 | $2,718 | 22.0% | 0.8% |
| THE M | $1,557,197 | $2,508 | $1,908,348 | $2,542 | 22.6% | 1.3% |
| VERDALE | $1,075,024 | $1,752 | $1,321,205 | $1,802 | 22.9% | 2.8% |
| KENT RIDGE HILL RESIDENCES | $1,145,492 | $1,723 | $1,409,880 | $1,779 | 23.1% | 3.2% |
| MAYFAIR MODERN | $1,309,400 | $2,098 | $1,614,387 | $2,094 | 23.3% | -0.2% |
| WHISTLER GRAND | $896,940 | $1,456 | $1,108,107 | $1,445 | 23.5% | -0.8% |
| RV ALTITUDE | $1,330,900 | $3,016 | $1,654,800 | $2,707 | 24.3% | -10.2% |
| THE WOODLEIGH RESIDENCES | $1,085,586 | $1,871 | $1,361,107 | $1,961 | 25.4% | 4.8% |
| VIEW AT KISMIS | $902,667 | $1,747 | $1,135,954 | $1,724 | 25.8% | -1.3% |
| PENROSE | $976,565 | $1,512 | $1,254,890 | $1,701 | 28.5% | 12.5% |
| FORETT AT BUKIT TIMAH | $1,174,906 | $2,029 | $1,520,342 | $2,033 | 29.4% | 0.2% |
| PHOENIX RESIDENCES | $912,598 | $1,514 | $1,197,910 | $1,601 | 31.3% | 5.7% |
| THE HYDE | $1,950,498 | $2,822 | $2,569,490 | $2,994 | 31.7% | 6.1% |
| PARKSUITES | $1,641,318 | $2,116 | $2,550,000 | $2,173 | 55.4% | 2.7% |
| 3 CUSCADEN | $1,747,151 | $4,162 | $2,749,602 | $3,668 | 57.4% | -11.9% |
| ATLASSIA | $1,305,840 | $2,128 | $2,467,647 | $1,948 | 89.0% | -8.4% |
We can see that, except for Uptown @ Farrer and Ki Residences, the extra bathroom always costs more in quantum (but not necessarily price per square foot). For these two projects, the higher prices for single-bathroom units mainly come down to timing; many of the single-bathroom units were transacted in a later sales phase than the two-bathroom units, hence the higher price point.
Differences in performance
Now we want to see the difference between gains or losses. Same as last time, we narrowed down the projects that had 2br 1ba and 2br 2ba and had at least 10 transactions:
| Project | 2BR 1BA | 2BR 2BA | Grand Total |
| AFFINITY AT SERANGOON | 18 | 36 | 54 |
| AVENUE SOUTH RESIDENCE | 4 | 10 | 14 |
| DAINTREE RESIDENCE | 1 | 16 | 17 |
| JADESCAPE | 11 | 35 | 46 |
| PARC CLEMATIS | 5 | 30 | 35 |
| PARC ESTA | 43 | 45 | 88 |
| PARK COLONIAL | 23 | 24 | 47 |
| RIVERFRONT RESIDENCES | 60 | 46 | 106 |
| STIRLING RESIDENCES | 39 | 63 | 102 |
| THE FLORENCE RESIDENCES | 7 | 62 | 69 |
| THE TAPESTRY | 16 | 16 | 32 |
| THE WOODLEIGH RESIDENCES | 6 | 14 | 20 |
| TREASURE AT TAMPINES | 40 | 42 | 82 |
| WHISTLER GRAND | 21 | 18 | 39 |
| Grand Total | 294 | 457 | 751 |
| 2 Bedroom Type | Average ($) | Average (%) | Annualised (%) | Volume |
| 2BR 1BA | $187,992 | 19.3% | 4.5% | 294 |
| 2BR 2BA | $235,731 | 20.5% | 5.0% | 457 |
The two bathroom units do perform better on average, but the difference is marginal; around half a percentage point. Do note that there are a lot more two-bathroom units being transacted though, but that could also just be the case of a bigger supply.
Next, we looked closer at differences within each project:
| Average Performance ($) | Average Performance (%) | Annualised Returns (%) | ||||
| Project | 1BR | 2BR | 1BR | 2BR | 1BR | 2BR |
| AFFINITY AT SERANGOON | $164,216 | $191,192 | 17.3% | 16.6% | 3.5% | 3.7% |
| AVENUE SOUTH RESIDENCE | $142,125 | $237,949 | 9.9% | 16.5% | 2.4% | 4.3% |
| DAINTREE RESIDENCE | $184,300 | $256,414 | 15.8% | 21.7% | 6.0% | 5.8% |
| JADESCAPE | $247,781 | $282,939 | 22.4% | 21.8% | 5.2% | 5.4% |
| PARC CLEMATIS | $225,400 | $258,655 | 20.5% | 22.2% | 5.3% | 5.9% |
| PARC ESTA | $252,451 | $317,953 | 23.5% | 24.5% | 5.7% | 6.2% |
| PARK COLONIAL | $197,512 | $175,140 | 17.4% | 14.2% | 4.0% | 3.2% |
| RIVERFRONT RESIDENCES | $149,676 | $203,219 | 18.4% | 21.7% | 3.9% | 4.6% |
| STIRLING RESIDENCES | $234,979 | $266,594 | 20.4% | 20.4% | 5.2% | 4.9% |
| THE FLORENCE RESIDENCES | $149,586 | $217,487 | 15.9% | 21.3% | 3.8% | 4.9% |
| THE TAPESTRY | $94,425 | $172,827 | 10.9% | 17.6% | 3.1% | 3.7% |
| THE WOODLEIGH RESIDENCES | $169,333 | $252,000 | 15.7% | 19.4% | 4.1% | 4.9% |
| TREASURE AT TAMPINES | $140,969 | $182,719 | 17.4% | 19.5% | 4.1% | 5.4% |
| WHISTLER GRAND | $235,842 | $255,291 | 27.6% | 23.6% | 6.5% | 6.1% |
The differences are marginal in most projects. We did see a more pronounced difference in Avenue South Residence, but the reason for this is not immediately clear and needs to be examined further.
The premium gap at launch
| New Sale | Sub Sale / Resale | ||||||
| Project | 1 Bathroom Avg. Price | 2 Bathroom Avg. Price | Premium Difference (%) | 1 Bathroom Avg. Price | 2 Bathroom Avg. Price | Premium Difference (%) | Difference |
| AFFINITY AT SERANGOON | $948,000 | $1,154,479 | 21.8% | $1,112,216 | $1,345,670 | 21.0% | -0.8% |
| AVENUE SOUTH RESIDENCE | $1,427,000 | $1,450,920 | 1.7% | $1,569,125 | $1,688,869 | 7.6% | 6.0% |
| DAINTREE RESIDENCE | $1,165,700 | $1,204,680 | 3.3% | $1,350,000 | $1,461,094 | 8.2% | 4.9% |
| JADESCAPE | $1,112,391 | $1,297,483 | 16.6% | $1,360,172 | $1,580,421 | 16.2% | -0.4% |
| PARC CLEMATIS | $1,098,200 | $1,168,433 | 6.4% | $1,323,600 | $1,427,089 | 7.8% | 1.4% |
| PARC ESTA | $1,073,767 | $1,290,800 | 20.2% | $1,326,218 | $1,608,753 | 21.3% | 1.1% |
| PARK COLONIAL | $1,144,179 | $1,264,689 | 10.5% | $1,341,691 | $1,439,829 | 7.3% | -3.2% |
| RIVERFRONT RESIDENCES | $816,914 | $935,109 | 14.5% | $966,590 | $1,138,327 | 17.8% | 3.3% |
| STIRLING RESIDENCES | $1,157,154 | $1,303,206 | 12.6% | $1,392,133 | $1,569,801 | 12.8% | 0.1% |
| THE FLORENCE RESIDENCES | $941,857 | $1,019,097 | 8.2% | $1,091,443 | $1,236,584 | 13.3% | 5.1% |
| THE TAPESTRY | $862,623 | $986,673 | 14.4% | $957,049 | $1,159,500 | 21.2% | 6.8% |
| THE WOODLEIGH RESIDENCES | $1,087,000 | $1,310,786 | 20.6% | $1,256,333 | $1,562,786 | 24.4% | 3.8% |
| TREASURE AT TAMPINES | $812,503 | $935,775 | 15.2% | $953,472 | $1,118,495 | 17.3% | 2.1% |
| WHISTLER GRAND | $855,320 | $1,084,747 | 26.8% | $1,091,161 | $1,340,039 | 22.8% | -4.0% |
Despite the marginal differences in performance, some developers do charge a rather large premium for the extra bathroom. Whistler Grand, The Woodleigh, and Parc Esta are the most notable, with a premium of above 20 per cent.
For Whistler Grand, this could be due to a large number of two-bedroom layouts, ranging from 503 sq. ft. to 700 sq. ft., so the size difference beyond an added bathroom could account for the quantum difference. The same could apply to The Woodleigh, where 2B1B units are 570 sq. ft., but the 2B2B units can go up to 721 sq. ft.
This isn’t true for Parc Esta, where 2B1B units are just as large as 2B2B units, or at least very close in size; so it’s possible that the two bathroom units here were just transacted later in the sale process and at a higher price.
In general, there still doesn’t seem to be strong evidence that the second bathroom is going to make for better performance. But on the flipside, we can also see that the premium for a second bathroom may not be that big for certain projects; so if you need it, it’s possible to get it without paying over the top.
It’s likely, however, that landlords will want the two-bathroom units as it’s better for unrelated tenants. For homeowners, some may not want to trade extra living space for another bathroom. As always, ultimately this matters based on your entry price – if the premium for a second bathroom is too big, it may not make as much sense from an investment standpoint.
For more looks at the Singapore property market, follow us on Stacked. If you’re considering any of the units above, you can also check out in-depth reviews on our website.
