Are New Launch Bigger Bedroom Units Getting More Expensive?

Get The Property Insights Serious Buyers Read First: Join 50,000+ readers who rely on our weekly breakdowns of Singapore’s property market.

Ryan is part property consultant, part wordsmith, and a true numbers aficionado. Ryan's balanced approach to every transaction is as diverse as it is effective. Since starting his real estate journey in 2016, he has personally brokered over $250 million of properties. Beyond the professional sphere, you'll often find him cherishing moments with his beloved cats: Mia, Holly, Percy and Toto.
I’m sure most of you would know the drill by now when it comes to general new launch pricing.
Small units equals higher PSF, big units equals lower PSF.
In the past few years where there has been added emphasis on smaller units to cater to investors and the like, it certainly makes a lot of sense (for the developers, that is).
Smaller units are usually easier to move because of the lower quantum, so despite the higher PSF, these would still sell out the fastest.
And even though from a profit maximising perspective it would be ideal for the developers to charge a higher PSF for the bigger units, in this way they are still able to obtain a good average PSF for the development overall.
Let me show you some examples from a number of notable launches from the past few years.
Development | Alex Residences | Principal Garden | D’Nest | Clement Canopy | Panorama | Commonwealth Towers |
1 Bedroom | $1,857 | $1,704 | $1,139 | – | $1,389 | $1,775 |
2 Bedroom | $1,917 | $1,659 | $974 | $1,436 | $1,243 | $1,649 |
3 Bedroom | $1,733 | $1,688 | $939 | $1,380 | $1,234 | $1,620 |
4 Bedroom | – | $1,603 | $963 | $1,284 | $1,225 | $1,607 |
*I excluded penthouse units and some bigger than normal dual key units to make it more accurate
**These were based on new launch prices only
From here, it’s quite clear that the selling $PSF for smaller units are higher than the bigger units.
So this could have possibly contributed to the bigger profits for larger unit types bought in recent years.
Because in the past if you were to buy a brand new 2 bedroom at The Panorama for example, the price you would pay would be about $1,250 PSF.
As compared to a 5 bedroom unit, you would be looking at prices hovering around the $1,100 mark instead.
But look what happens once units reach the resale market – the resale prices for the smaller units and bigger ones end up at almost around the same $1,400 to $1,500 range.
Date | Size | $PSF Price | Price |
6 Nov 2020 | 1,335 | $1,409 | $1,880,000 |
5 Nov 2020 | 700 | $1,479 | $1,035,000 |
26 Oct 2020 | 452 | $1,526 | $690,000 |
19 Oct 2020 | 1,066 | $1,501 | $1,600,000 |
29 Sep 2020 | 474 | $1,446 | $685,000 |
28 Sep 2020 | 1,001 | $1,536 | $1,538,000 |
28 Sep 2020 | 452 | $1,548 | $700,000 |
1 Sep 2020 | 1,012 | $1,443 | $1,460,000 |
More from Stacked
We Want To Convert Our Living Room Into A 4th Bedroom: How Can We Avoid It Being Too Dark?
Ever since we covered this HDB home that cleverly fashioned a guest/study room out of their living room space, we've…
Which is exactly why those who have bought bigger units in these developments have actually made more overall.
To further illustrate, I have compiled the figures among the same few developments.
I broke down between small units (1 and 2 bedrooms), and bigger units (3 bedrooms and up).
Next, I calculated the profit margin of each transaction based on the initial selling prices.
Development | No of Tnx | Small Units Profit Margin | No of Tnx | Big Units Profit Margin |
Alex Residences | 46 | 15.60% | 2 | 13.40% |
Principal Garden | 10 | 12.50% | 5 | 17.20% |
D’Nest | 79 | 11.50% | 85 | 12.50% |
Clement Canopy | 1 | 17.80% | 5 | 17.70% |
Panorama | 38 | 14.90% | 25 | 20.40% |
Commonwealth Towers | 46 | 15.60% | 2 | 13.40% |
You might notice that Clement Canopy and Commonwealth Towers go against the grain of the rest, but I would say that because of the relative lack of transactions either for the smaller or bigger units that these would not be as accurate to look at.
Either ways, you can see that the bigger units have been the almost unanimous winners.
So call it a coincidence, but there has been a recent trend of bigger units in new launches being priced very similar PSF wise to the smaller units in the development.
(To be honest, you could also say that the smaller units are being priced more in-line with the bigger units)
So you could say that it’s down to developers capitalising on the work from home trend.
Or you could also chalk it down to the fact that people are starting to realise the importance of space in their homes and hence, they place a higher priority for bigger homes as well.
Or you could also argue that the developers see that larger units will have a higher demand in their respective locations.
Nevertheless, the proof is in the pudding with the new launch prices.
Take Clavon for instance – this is a quick snapshot of the starting launch prices.

You will notice that the PSF launch prices between all the bedroom types have very similar $PSF.
Same goes for the recently launched Ki Residences, where the average selling PSF for the smallest units (2 bedrooms) had all sold at $1,759 PSF.
Again, this is in contrast to the 3 bedroom units and above at $1,785 PSF. (for all transactions sold on launch)
So here’s the important questions that we need to ask ourselves.
Number 1: Will resale change too and follow suit?
Number 2: Will this remain? Or do you think once a development reaches TOP the smaller units will again return to being the higher priced PSF?
I would love to hear your opinions on this. Please feel free to leave a comment below or reach out to me at ryan@stackedhomes.com!
If you’d like to get in touch for a more in-depth consultation, you can do so here.
Ryan
Ryan is part property consultant, part wordsmith, and a true numbers aficionado. Ryan's balanced approach to every transaction is as diverse as it is effective. Since starting his real estate journey in 2016, he has personally brokered over $250 million of properties. Beyond the professional sphere, you'll often find him cherishing moments with his beloved cats: Mia, Holly, Percy and Toto.Read next from Editor's Pick

Property Investment Insights Why I Bought A $1.47M 2-Bedroom Stirling Residences Condo Unit: A Buyer’s Case Study

Landed Home Tours We Toured A Freehold Landed Estate In Singapore With Vintage Properties and Top Thai Restaurants

Singapore Property News NDP Rally 2025: The 4 Key Housing Takeaways for Singaporeans

Property Advice The Ideal Size for Each Room of Your Condo to Actually Feel Liveable Revealed
Latest Posts

Overseas Property Investing Singaporeans Are Buying More Overseas Homes — But Few Have Prepared For These Things

Singapore Property News This 5-Room HDB in Clementi Just Sold For $1.458M: Here’s What The Seller Could Have Made

On The Market We Found The Cheapest And Biggest 5-room Flats Over 1,400 Sq ft You Can Buy Right Now

Pro Low Floor vs. High Floor: What Transaction Data Reveals About the Premium

Singapore Property News 14,000 Homes In Kranji And A Transformed Woodlands — Will The North Become Singapore’s Next Hotspot?

Property Advice The Math Behind Why 30–35 Is The Sweet Spot To Upgrade From HDB To Condo

Pro Can a One-Bedder Outperform a Two-Bedder? We Analysed 5 Years of Data

Singapore Property News Springleaf Residence Sells 870 of 941 Units (92%) At Launch — What’s Driving Demand?

Singapore Property News Could Your East-Side Condo Be Worth More Now? Singapore Just Raised Height Limits Near Changi

Singapore Property News From SERS to VERS: What Every HDB Owner Needs to Know About the Big Shift

On The Market 5 Cheapest 3-Bedroom Condos To Buy Right Now In 2025 (From $980K)

Homeowner Stories I’m a Former Police Officer Who Now Co-Owns 40 Property Investments Without Managing a Single Tenant: Here’s How

Pro Analysing 10 Years of District 15 Boutique Condo Transactions: Insights Into What Drives Profitability

Property Advice 5 Mistakes You Make When Comparing Condo Prices – Your ‘Good Deal’ Might Be Hiding a Secret

Pro District 7 vs District 9: Which Prime Location Has Delivered Better Condo Value?

Thank you Ryan for your usual insightful article. This trend is probably because the larger units are not so large anymore compared to older developments.
amazing analysis!