Is A 2B2B Or 2B1B New Launch Condo Better For Investment? Here’s What The Latest Data Says

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.