We Analysed 8 Years Of 1-Bedroom Condo Data In Central Singapore: Here’s What Investors Should Know

Should you still invest in 1 bedroom condos in the CCR? Here's what 8 years of data reveals for property investors.

By Ryan J. Ong

Published 22 April 2025, 8:40 PM SGT · 8 min read · 211

We Analysed 8 Years Of 1 Bedroom Condo Data In Central Singapore Here’s What Investors Should Know

In this Stacked Pro breakdown:

We uncover why most CCR shoebox units are underperforming in capital gains—even after holding periods of over eight years.
See how ABSD can completely wipe out any meaningful returns, unless you structure your investment with care.
Discover the few CCR projects where investors saw 2.5 per cent annualised gains—and why these are the rare exceptions.

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The shoebox craze ended many years ago, but elements of it still linger. One of the common sayings from that period - that “shoeboxes in the CCR are good investments” - still lingers.

However, our examination of the numbers suggests otherwise: several signs point to CCR-showboxes showing lacklustre gains, and perhaps being hampered by higher initial price points. Here’s what to know before you buy or invest:

Examining shoebox units for rental and resale gains

For the following, we will look at shoebox transactions from 4th January 2011 through to the end of 2024.

This is because the Sellers Stamp Duty (SSD) was introduced on 4th January 2011. Transactions before the SSD were more profitable over a much shorter period, and that would be misleading considering the regulatory environment today.

Frequently asked questions

Are shoebox units in Central Singapore good investments for capital gains?

Most CCR shoebox units have underperformed in capital gains, with average resale gains of only 1.5% over 6.2 years, and some even experienced losses. Only a few projects saw annualized gains of around 2.5%, making them less attractive for capital appreciation.

How does the Additional Buyer’s Stamp Duty (ABSD) affect returns on CCR shoebox investments?

ABSD can significantly reduce returns, sometimes wiping out gains entirely. For example, with ABSD, profits may be as low as $27,336 over six years, whereas avoiding ABSD through specific structuring can improve profit to about $149,460, assuming a 2.5% annual appreciation.

What are the rental yields like for CCR shoebox units in Singapore?

The average gross rental yield for CCR shoebox units is around 4.4%, which is higher than larger family condos. However, rental income may not be enough to justify the investment once costs like stamp duties, interest, and maintenance are considered.

Is investing in CCR shoebox units a low-risk option?

No, CCR shoebox units are not considered low-risk. They face challenges such as limited resale gains, high initial costs, and difficulties in managing tenants, making them less suitable for inexperienced investors.

Can CCR shoebox units appreciate enough to make them worthwhile investments?

While some CCR shoebox units have seen good resale returns, the average appreciation rate is modest at around 1.5%. Achieving higher appreciation rates (e.g., 2.5%) could improve returns, but overall, they may not provide significant capital gains compared to other assets.

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Ryan J. Ong

Partner at Stacked

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan’s expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938’s Open House programme underscores his commitment to providing valuable insights into the property market.