How Much Does The Unit Mix Matter When Buying A One-Bedder Condo?

In the Singapore property market, there are many persistent beliefs about shoebox (one-bedder) units, which are tough to prove. However, one thing is for sure - the demand is certainly there given it still is the cheapest entry into the private residential market.

When it comes to buying a shoebox unit (1-bedder), the unit mix of the development is often overlooked. But does it matter if most of the condo consists of shoeboxes and smaller units, or is it better to buy in a development with a wider variety of unit types? Could a balanced mix, from 1-bedders to 5-bedders, offer better long-term value? Here’s what we found out:

Why is the unit mix a concern to some buyers?

In general, a condo with a lot of small units is seen as a negative from an investment standpoint. Reasons range from it just being a rental project, to tougher sales pulling down the average price. 

The former is based on the assumption that an “all-small unit” condo will consist of mainly tenants, who come and go regularly; and that the owners are investors who have no qualms about an en-bloc sale. 

The latter is based on the belief that small units are tougher to sell/have weaker gains, so an “all-small unit” mix pulls down the price average. On the rental side, it may also spark a lot of competition; again on the assumption that most residents will be renters.

As such, some buyers of one-bedroom units, be they first-time investors or single homeowners, do care about the overall unit mix. Even though they’re buying small units themselves, many prefer a condo development with a balanced mix of small and family-sized units. 

This led us to check whether one-bedder performance really is better with a balanced unit mix, compared to projects with just small units.

The condo projects we’ve selected

For the following, we’ve separated condo projects into ones with overwhelmingly small units (over 90 per cent are one and two-bedders), and condo units that count as having a balanced mix (one or two-bedders account for no more than 60 per cent of the unit mix). 

Condos	< 500 sq ft	< 800 sq ft	< 1200 sq ft	> 1200 sq ft	Grand Total	500 sq ft Portion	Small Unit Portion
16 @ AMBER	29	28		1	58	50%	98%
26 NEWTON	72	93	8	2	175	41%	94%
28 IMPERIAL RESIDENCES	25	25	3	2	55	45%	91%
3 CUSCADEN	46	45		6	97	47%	94%
AIRSTREAM	115	29	3		147	78%	98%
ASPEN LINQ	17	9			26	65%	100%
ATTITUDE AT KIM YAM	53	16			69	77%	100%
AVANT RESIDENCES	29	18	2		49	59%	96%
CASA AERATA	79	56	8		143	55%	94%
CASA CAMBIO	157	94	12	13	276	57%	91%
CAVAN SUITES	56	4			60	93%	100%
CENTRA HEIGHTS	85	28	6	2	121	70%	93%
CENTRA LOFT	54	6	5		65	83%	92%
CENTRA STUDIOS	84	7			91	92%	100%
CENTRA SUITES	103	5			108	95%	100%
CITY LOFT	67	7	7		81	83%	91%
CITY SUITES	29	26	4		59	49%	93%
COSMO	39	44	3	1	87	45%	95%
CRADELS	100	60	5	3	168	60%	95%
DEVONSHIRE 12	17	8	2		27	63%	93%
DEVONSHIRE RESIDENCES	40	44	9		93	43%	90%
DORSETT RESIDENCES	34	65	7	3	109	31%	91%
EDENZ LOFT	48	7			55	87%	100%
EDENZ SUITES	57		1		58	98%	98%
ESPADA	197	131	1	3	332	59%	99%
FIFTY-TWO STEVENS	13	9	1	1	24	54%	92%
GRANDVIEW SUITES	42	14	2	4	62	68%	90%
GUILLEMARD SUITES	48	111	12	2	173	28%	92%
HAIG 162	147	27	11		185	79%	94%
HILLION RESIDENCES	380	212	26	33	651	58%	91%
IDYLLIC SUITES	61	31			92	66%	100%
ILLUMINAIRE ON DEVONSHIRE	66	61			127	52%	100%
JOOL SUITES	51	19	3		73	70%	96%
KOVAN GRANDEUR	88	51	11	3	153	58%	91%
LA BRISA	69	64	9		142	49%	94%
LA FLEUR	77	7			84	92%	100%
LE REGAL	78	39	4		121	64%	97%
LE SOMME	9	14	2		25	36%	92%
LEICESTER SUITES	74	4	4		82	90%	95%
LEVENUE	44	8	5		57	77%	91%
LOFT @ STEVENS	43	15	2		60	72%	97%
LOFT@HOLLAND	60		5		65	92%	92%
M5	18				18	100%	100%
MELOSA	53	33			86	62%	100%
METRO LOFT	34	6			40	85%	100%
MIDTOWN BAY	65	62	7	3	137	47%	93%
MOUNT SOPHIA SUITES	37	60			97	38%	100%
NESS	74	16	7		97	76%	93%
NOTTINGHILL SUITES	116	60	1		177	66%	99%
OKIO	72	63	4		139	52%	97%
ONE DUSUN RESIDENCES	72	112	9		193	37%	95%
OPAL SUITES	33	4	2		39	85%	95%
PARC SOMME	37	14	5		56	66%	91%
PARK RESIDENCES KOVAN	58	4	4		66	88%	94%
PAVILION SQUARE	55	3	2		60	92%	97%
PRESTIGE HEIGHTS	237	15	19	3	274	86%	92%
PRIME RESIDENCE	19	30	1		50	38%	98%
RANGOON 88	29	27	2	1	59	49%	95%
ROBIN SUITES	62	24	5	4	95	65%	91%
ROBINSON SUITES	59	95	6	2	162	36%	95%
ROYCE RESIDENCES	54	10	1		65	83%	98%
RV ALTITUDE	40	101			141	28%	100%
RV EDGE	142	11	14		167	85%	92%
RV POINT	40	3	2		45	89%	96%
SILVERSCAPE	58	10			68	85%	100%
SIMS EDGE	55	49	10		114	48%	91%
SPOTTISWOODE 18	202	115	15	3	335	60%	95%
SUITES @ PAYA LEBAR	126	30		12	168	75%	93%
SUITES @ SHREWSBURY	27	3	1		31	87%	97%
SUITES @ SIMS	56	24	4		84	67%	95%
SUITES@BRADDELL	45	3	3		51	88%	94%
SUITES@CHANGI	68		6		74	92%	92%
THE EBONY	47	7	3		57	82%	95%
THE INTERWEAVE	167	79	1		247	68%	100%
THE M	141	366	24		531	27%	95%
THE OCTET	53	16			69	77%	100%
THE RED HOUSE	12	16	2		30	40%	93%
THE TIER	23	55	2		80	29%	98%
THOMSON V TWO	98	64	3		165	59%	98%
TREASURES @ G20	52	2	2		56	93%	96%
TREASURES@G19	36	3			39	92%	100%
TREASURES@G6	46		2	2	50	92%	92%
URBAN LOFTS	39	48	6	1	94	41%	93%
VETRO	32	43	3		78	41%	96%
VIBES @ EAST COAST	121	42	3		166	73%	98%
VIENTO	69	10			79	87%	100%
VIVA VISTA	161	30	8		199	81%	96%
VIVACE	87	20	4	1	112	78%	96%
WILKIE 80	41	50	1		92	45%	99%
QUEENS PEAK	333	184	309	56	882	38%	59%
HIGH PARK RESIDENCES	318	793	494	247	1852	17%	60%
KINGSFORD WATERBAY	309	458	619	51	1437	22%	53%
TREASURE AT TAMPINES	285	879	894	502	2560	11%	45%
BARTLEY RIDGE	258	184	570	147	1159	22%	38%
EIGHT RIVERSUITES	254	302	530	81	1167	22%	48%
PARC ESTA	242	644	660	83	1629	15%	54%
THE INFLORA	216	104	192	80	592	36%	54%
D'NEST	212	323	389	335	1259	17%	42%
BARTLEY RESIDENCES	175	143	506	160	984	18%	32%
PARC CENTROS	173	159	332	187	851	20%	39%
COCO PALMS	168	316	394	301	1179	14%	41%
SKY VUE	155	367	349	14	885	18%	59%
LE QUEST	147	159	244	30	580	25%	53%
PARC CLEMATIS	147	587	503	354	1591	9%	46%
WATERBANK AT DAKOTA	143	183	464	216	1006	14%	32%
THE SCALA	142	10	492	52	696	20%	22%
THE PANORAMA	141	251	393	117	902	16%	43%
V ON SHENTON	134	89	156	138	517	26%	43%
GEM RESIDENCES	133	275	219	97	724	18%	56%
STRATUM	129	115	126	146	516	25%	47%
AMBER PARK	114	218	109	178	619	18%	54%
GRANDEUR PARK RESIDENCES	113	370	269	108	860	13%	56%
THE PROMENADE@PELIKAT	111	9	94	14	228	49%	53%
LA FIESTA	110	306	504	131	1051	10%	40%
HEDGES PARK CONDOMINIUM	106	229	369	73	777	14%	43%
SENGKANG GRAND RESIDENCES	105	293	264	51	713	15%	56%
NORTH PARK RESIDENCES	104	477	369	91	1041	10%	56%
ALEX RESIDENCES	96	153	265		514	19%	48%
JEWEL @ BUANGKOK	96	278	283	116	773	12%	48%
STURDEE RESIDENCES	95	123	118	42	378	25%	58%
RIVERBANK @ FERNVALE	93	116	448	72	729	13%	29%
ECHELON	87	200	176	193	656	13%	44%
THE TEMBUSU	84	122	99	86	391	21%	53%
WHISTLER GRAND	84	392	202	144	822	10%	58%
THOMSON THREE	82	198	231	46	557	15%	50%
SKIES MILTONIA	79	227	230	66	602	13%	51%
VACANZA @ EAST	79	71	439	109	698	11%	21%
LAKE GRANDE	73	404	307	24	808	9%	59%
THE NAUTICAL	72	94	301	144	611	12%	27%
NORMANTON PARK	67	1004	651	150	1872	4%	57%
PARC OLYMPIA	66	263	239	130	698	9%	47%
REGENT RESIDENCES	65	62	120	9	256	25%	50%
LINCOLN SUITES	61	29	91	51	232	26%	39%
8@WOODLEIGH	60	4	459	61	584	10%	11%
FORESQUE RESIDENCES	60	163	219	196	638	9%	35%
THE CREEK @ BUKIT	58	88	90	80	316	18%	46%
SKYLINE RESIDENCES	57		104	169	330	17%	17%
THE LAKEFRONT RESIDENCES	56	244	350	220	870	6%	34%
CORALIS	54	2	68	47	171	32%	33%
OPTIMA @ TANAH MERAH	53	37	263	147	500	11%	18%
THE SORRENTO	50	32	44	28	154	32%	53%
RIVERSOUND RESIDENCE	49	80	410	258	797	6%	16%
CASPIAN	47		474	704	1225	4%	4%
NIN RESIDENCE	47	30	151	74	302	16%	25%
THE GAZANIA	45	79	73	49	246	18%	50%
DOMUS	43		77	46	166	26%	26%
MARGARET VILLE	43	128	172	1	344	13%	50%
THE VERANDAH RESIDENCES	42	61	55	23	181	23%	57%
18 WOODSVILLE	41	24	44	6	115	36%	57%
HUNDRED TREES	41	111	230	231	613	7%	25%
THE WISTERIA	41	105	139		285	14%	51%
TWIN VEW	41	200	241	127	609	7%	40%
THE LUXURIE	40	276	438	110	864	5%	37%
TREVISTA	40	48	610	337	1035	4%	9%
FULCRUM	39	34	63	8	144	27%	51%
THE SANTORINI	39	343	299	85	766	5%	50%
SUITES 28	35	8	49		92	38%	47%
THE LINE @ TANJONG RHU	35	34	43	14	126	28%	55%
TRE RESIDENCES	33	118	167	4	322	10%	47%
JUI RESIDENCES	32	42	54		128	25%	58%
PARC KOMO	31	119	87	52	289	11%	52%
SKY EVERTON	31	136	88	26	281	11%	59%
THE PALETTE	30	261	762	178	1231	2%	24%
6 DERBYSHIRE	29	77	73	1	180	16%	59%
NYON	29	18	23	26	96	30%	49%
SEASIDE RESIDENCES	27	547	207	191	972	3%	59%
MEYER MANSION	25	24	49	103	201	12%	24%
PALM GALLERIA	25		52	14	91	27%	27%
SOLEIL @ SINARAN	25	156	291	291	763	3%	24%
EIGHT COURTYARDS	24	48	692	128	892	3%	8%
BLISS LOFT	22	15	35	7	79	28%	47%
RIVER ISLES	22	89	423	321	855	3%	13%
URBAN RESIDENCES	21	2	25	10	58	36%	40%
VUE 8 RESIDENCE	21	154	182	220	577	4%	30%
MY MANHATTAN	19	78	226	62	385	5%	25%
VIIO @ BALESTIER	19	16	31		66	29%	53%
DUO RESIDENCES	18	322	238	104	682	3%	50%
NV RESIDENCES	18	266	509	209	1002	2%	28%
THE HYDE	18	30	34	33	115	16%	42%
NEWEST	16	42	8	101	167	10%	35%
CUBIK	15		17	2	34	44%	44%
ROBIN RESIDENCES	14	54	40	24	132	11%	52%
SPRING @ LANGSAT	14	2	31	7	54	26%	30%
8 SAINT THOMAS	13	40	92	92	237	5%	22%
MOUNTBATTEN SUITES	13	15	24	13	65	20%	43%
24 ONE RESIDENCES	11	5	8	5	29	38%	55%
THE LUCENT	11		30	39	80	14%	14%
AURA 83	10	28	16	10	64	16%	59%
HAIG RESIDENCES	10		12	4	26	38%	38%
SENNETT RESIDENCE	10	141	197	76	424	2%	36%
THE VENUE RESIDENCES	10	24	240	62	336	3%	10%
VENTURA VIEW	10	19	11	20	60	17%	48%
3@SANDILANDS	9	12	13	9	43	21%	49%
SEA PAVILION RESIDENCES	9	3	10	3	25	36%	48%
SHIRO	9		10	1	20	45%	45%
THE BENTLY RESIDENCES@KOVAN	9	19	21	11	60	15%	47%
THE SCENIC @ BRADDELL	8	7	10	10	35	23%	43%
THREE 11	8	37	35	4	84	10%	54%
38 JERVOIS	7	4	17		28	25%	39%
HILBRE28	7		19	10	36	19%	19%
RIZ HAVEN	7	5	32	15	59	12%	20%
BLISS@KOVAN	6	36	63	77	182	3%	23%
ONAN SUITES	6	9	19	13	47	13%	32%
RESIDENCES BOTANIQUE	6	7	94	17	124	5%	10%
TRILIVE	6	142	113		261	2%	57%
DUNEARN 386	5	16	15		36	14%	58%
NINE RESIDENCES	5	122	89	20	236	2%	54%
LEVILLE ISUITES	4	18	16	11	49	8%	45%
ONE DUCHESS	4	2	8	2	16	25%	38%
RESIDENCE TWENTY-TWO	4		11	8	23	17%	17%
SUITES @ AMBER	3	18	27	3	51	6%	41%
UBER 388	3	17	52	42	114	3%	18%
BALCON EAST	2	17	23	21	63	3%	30%
D' ALMIRA	2	5	21	21	49	4%	14%
HIJAUAN	2	11	28	4	45	4%	29%
NOVA 88	2	53	66	47	168	1%	33%
BERKELEY RESIDENCES	1	17	14	2	34	3%	53%
GARDEN PARK RESIDENCES	1	25	12	8	46	2%	57%
SANCTUARY @ 813	1	10	24		35	3%	31%
WHITEHAVEN	1	73	46	16	136	1%	54%

From here, we first looked at the profitability of the one-bedders (below 500 sq. ft.), from January 2013 to the present.

(We chose January 2013 as that was when the Sellers Stamp Duty (SSD) was implemented. All the transactions have an equal footing, as none of them occurred before the added tax on sellers)

As a general conclusion, it seems better to buy a one-bedder in a condo with a balanced unit mix.

There’s a substantial difference in performance: the one-bedders in almost purely “small unit” condos saw average returns of 6.6 per cent. However, the one-bedders in condos with a balanced unit mix saw returns of 14.9 per cent. 

This was over an almost similar holding period (5.7 years versus six years).

But could this also be related to the total unit count (e.g., boutique condos with very few units, versus mass-market condos with lots of units?)

To check this out, we want to set up a comparison between condo projects that are boutique (less than 150 total units), and the larger mass market projects:

Type	Not Boutique	Boutique	Grand Total
QUALIFY AS GOOD MIX	81	50	131
QUALIFY AS SMALL	11	79	90
Grand Total	92	129	221

There’s a discrepancy here. Most of the “all-small unit” projects are boutique condos (79 are boutique, versus 11 mass-market projects). So let’s look at performance specific to just the boutique projects:

Type	QUALIFY AS GOOD MIX	QUALIFY AS SMALL
Average of quantum	$51,092	$22,327
Average of %	7.30%	4.07%
Average of annualised	1.06%	0.88%
Average of holding period	6.1	5.7
Volume	60	370

Even confined to boutique projects, we see the same overall result. 

On average, one-bedders in a condo with a balanced unit mix will outperform. Regardless of whether it’s a boutique or mass-market condo, there does seem to be justification for avoiding “all-small unit” mixes.

Next, we checked if the results would be the same for new-to-resale transactions, versus resale-to-resale transactions

New to resale
Values	QUALIFY AS GOOD MIX	QUALIFY AS SMALL	Difference
Average of quantum	$95,838	$35,742	$60,097
Average of %	16.0%	7.1%	8.9%
Average of annualised	2.2%	1.0%	1.2%
Average of holding period	6.9	6.7	0.2
Volume	854	257

Resale to Resale			
Values	QUALIFY AS GOOD MIX	QUALIFY AS SMALL	Difference
Average of quantum	$66,510	$45,665	$20,845
Average of %	10.7%	7.8%	2.8%
Average of annualised	2.5%	1.8%	0.7%
Average of holding period	4.5	4.8	-0.2
Volume	179	281	

We saw a big difference in returns between those who bought new, and those who bought as resale. 

To some degree, this may reflect developer pricing methods: in a project with a balanced unit mix, developers tend to price the one and two-bedders to move first. If nothing else, the combination of a lower quantum, plus early bird discounts, makes for impressive-looking launch figures. 

As such, those who bought new one-bedders in balanced projects have seen the best overall returns. Also note that 2013 was the last property market peak, which may also contribute to the good performance. 

For projects that are all-small units, however, there seems to be less difference whether they’re new-to-resale, or resale-to-resale. So if you’re going for a shoebox or a two-bedder, a new launch may be the better option - regardless of how the unit mix looks.

What about the issue of timing?

Could market conditions have affected the overall results? 2013 was, after all, a peak year. To get a sense of this, we first need to look at the transaction volumes based on the year:

Year Purchased	QUALIFY AS GOOD MIX	QUALIFY AS SMALL	Grand Total	Exclude?
2013	397	74	471	No
2014	142	108	250	No
2015	105	8	113	Yes
2016	102	27	129	No
2017	66	39	105	No
2018	17	1	18	Yes
2019	13		13	Yes
2020	11		11	Yes
2021	1		1	Yes
Grand Total	854	257	1111

Year Purchased	QUALIFY AS GOOD MIX	QUALIFY AS SMALL	Grand Total	Exclude?
2013	3	14	17	Yes
2014	3	16	19	Yes
2015	12	19	31	No
2016	14	39	53	No
2017	39	62	101	No
2018	49	67	116	No
2019	29	34	63	No
2020	24	18	42	No
2021	5	10	15	Yes
2022	1	2	3	Yes

Unfortunately, transaction volumes for both types of projects (balanced unit mixes and all-small units) are very low in certain years. Including these transactions could skew averages and distort the results - so we’ve excluded these as outliers when taking a second look at the data. 

Now here’s what we can see:

New to Resale
Values	QUALIFY AS GOOD MIX	QUALIFY AS SMALL
Average of quantum	$92,169	$36,009
Average of %	15.0%	7.1%
Average of annualised	2.0%	1.0%
Average of holding period	7.1	6.7
Volume	707	248

Resale to Resale		
Values	QUALIFY AS GOOD MIX	QUALIFY AS SMALL
Average of quantum	$40,047	$32,449
Average of %	6.1%	5.6%
Average of annualised	0.9%	1.1%
Average of holding period	5.4	5.5
Volume	59	131

The results are still consistent. We can conclude that, for one-bedder units, average performance is much better if:

• You purchase it as a new launch 
• You purchase it in a project with a balanced unit mix, rather than one that’s just packed with other small units 
• The project has a higher unit count, as you can see from the higher average return for projects with 150 units or more

It seems that conventional wisdom from realtors and veteran investors has panned out here: the market does seem more reluctant about landlord-oriented, all-small unit condos. It may also be a good reason to overlook the lack of immediate rental income when you pick a new launch one-bedder.