2-Bedder vs 2+Study Units: Which Condo Layout Has Better Returns Over The Last Decade?

Two-bedders are one of the discussed layouts in the property market right now; largely because high prices have placed three or four-bedders out of reach for many. This has sparked interest in two-bedders that are bigger than the norm, such as 2+1 units (sometimes also marketed as “compact three-bedders.”) But is the extra +1 worth paying more, or does it just eat into returns and lower rental yield? We looked at gains and rental of two versus 2+1 units over the past decade, to come to an answer:

In general, do two-bedders or 2+1 units see better resale gains?

Based on transactions from 2014 to 2024, here’s what we found in 11 projects, which have both two-bedders and 2+1 units:

For some projects, the margin is rather slight. But in 8 out of 11 projects, the two-bedroom plus study (2+1) units did see higher average gains than regular two-bedders. 

At Stirling Residences, 2+1 units gained $476,290 (36 per cent) versus $268,719 (22 per cent) for two-bedders; a difference of around $207,000. At Parc Esta, the 2+1 units gained $476,266 (35 per cent) compared to $323,711 (27 per cent) for the standard layout.

There were a few projects where plain two-bedders won out – such as Amber Park and Mont Botanik Residence – but in general, 2+1 appears to have been the better option.

As an interesting aside, Martin Modern’s unprofitable transactions saw six two-bedder units, and only one 2+1 unit:

We don’t want to read too much into this, as a single resale transaction (for 2+1) isn’t much to go on. But it is worth noting that only a single 2+1 unit saw a losing transaction, whilst the others were standard two-bedders. 

But what about if you bought the units early on, and tried to sell before TOP? Would the larger two-bedder still perform better then? Let’s have a look at new-to-sub sale transactions:

Profitable new to sub sale transactions

We still see a similar pattern. In 12 out of our 16 projects, two-bedroom plus study (2+1) units saw higher average gains than regular two-bedders. 

The differences were significant in some cases: at Martin Modern, for instance, the 2+1 units gained $239,094 (12 per cent) versus just $135,969 (seven per cent) for two-bedders. 

At Parc Esta the gap was even wider, with 2+1 units gaining $357,750 (26 per cent) compared to $264,129 (23 per cent).

Kent Ridge Hill Residences and Sky Everton were exceptions, where two-bedders outperformed 2+1 units by $44,937 and $28,044 respectively but these were outliers. Overall, the data suggests that for shorter holding periods (i.e., sub sales in particular), 2+1 layouts tend to fetch better resale outcomes.

Again as an aside, Sky Everton had two losing transactions, which involved a two-bedder and a 2+1 unit:

As before, we don’t want to read too much into individual transactions. However, we can’t help noticing that the 2+1 unit saw a significantly lower loss of  $26,000 compared to the two-bedder’s $132,000. 

(Although to be fair, the two-bedroom unit had a longer holding period of 3.1 years versus 2.3 years for the 2+, which may have contributed to the deeper loss.)

But from a landlord’s standpoint, does a 2+1 unit deliver better rental rates and yields? 

This is also a common question, as one and two-bedder units are the sizes most often preferred by landlords. Unfortunately, rental data from URA does not include exact unit numbers or precise floor areas, only size ranges (e.g., 70–80 sqm). This makes it difficult to isolate yields for specific unit types, like two-bedders versus two-bedroom plus study layouts.

To work around this, we used the following approach:

• We rounded up unit sizes from caveated sale transactions to the nearest corresponding URA rental size band.
  
• We only matched pairs (sale and rental) within the same development and size range were included.
  
• We excluded units falling outside available size bands 

We’re also going to look only at transactions from 2024, to reflect the real current rental conditions. This gives us a reasonable estimate of rental yields, though we acknowledge that it isn’t perfect, especially for developments where 2+1 units are very close in size to regular two-bedders.

From what we see above, a 2+1 unit doesn’t really give a big advantage to a landlord. The differences in yield are thin at best, and in most cases regular two-bedders edge out slightly in yield because of their lower price points. 

For example, in Whistler Grand the average rental yield for a two-bedder is 3.97 per cent, compared to 3.64 per cent for a 2+1 unit. That’s only because of its higher average purchase price ($1.44 million vs. $1.18 million). Similarly, at Stirling Residences, the two-bedder yields 3.65 per cent, while the 2+1 is at 3.24 per cent. Even at Parc Esta, where the yield gap is smaller (3.65 per cent vs. 3.52 per cent), the two-bedder still comes out slightly ahead.

Honestly though, these differences are so slight we doubt most landlords would care. 

What may tip the scale in favour of 2+1 units is something less tangible: rentability.

A 2+1 unit is more versatile, and it can be rented to small families, as well as roommates. It can also attract single tenants who need an extra home office or storage space for personal or business use, particularly in a post-pandemic era where hybrid work has driven greater demand for flexible living spaces. So while a 2+1 unit may not deliver a higher yield, it could make it easier to find and retain tenants. For landlords who can stretch the budget a bit, the larger unit could make better sense. 

Conclusion:

In general, what we see favours the larger 2+1 units. As we mentioned above, some families are now priced out of three-bedders or larger units; so as high prices start to bite, we’re likely to see continued or growing interest in this size category. 

That said, not all 2+1 units are equal. You also need to look out for layout issues, such as:

• Whether it’s a pre or post-harmonisation project, as the former may include wasted space in the form of planter boxes, big air-con ledges, etc. 
• Whether the “+1” is truly functional. An actual enclosable room, for example, is far more preferable than an odd corner with no window and limited ventilation. 
• The usefulness of kitchen spaces, which are especially important for families; nook kitchens are usually best, where there’s cabinetry and countertops of both sides of the kitchen 

For in-depth reviews of these layouts and projects, follow us on Stacked, where we examine new and resale condos alike. If you’d like to get in touch for a more in-depth consultation, you can do so here.