Why Some Central 2 Bedroom Homeowners In Singapore Are Stuck
Maybe it’s because of my age, but I prefer space over convenience these days; and that sets me apart from recent homebuyers.
I’m talking about the number of homebuyers who are interested in living within the Core Central Region (CCR), where prices typically require a compromise. Quite often, that compromise is having to own a two-bedder first, and then hoping everything works out well enough to upgrade. But here’s the tough, chewy bit that’s hard to digest:
Going from a two-bedder to a three-bedder, in the prime CCR districts, is a big challenge. The median asking prices for a two-bedder in the CCR right now are about $2,900+ psf for a new launch, or about $2,450 psf for resale. So, assuming a two-bedder is about 700 sq. ft., you’d usually be looking at prices of around $1.8 million; possibly more than $2 million for some fancier new launches.
News pieces like this explain what’s happening in the market. Our consultations are designed to help you understand what it means for your own property decisions.
If you’re considering buying, selling or upgrading, we’d be happy to help you work through your options.
Now, what does it cost to add another bedroom?
For three-bedders, you can expect about $2.7 million to $3 million to be the norm. Case in point: One Marina Gardens had prices reaching from $2.57 million to over $3 million for three-bedders, ranging from 904 to 1,012 sq. ft.
This is around an extra $1 million just for that one added bedroom; and barring a windfall, it’s not something many two-bedder owners can comfortably envision. For example:
Current situation:
- Couple owns a two-bedroom CCR condo.
- They sell it for $2 million (typical resale value for a CCR two-bedder)
- Outstanding loan: S$800,000 (assume they’ve paid down some over time)
- Net proceeds from sale:
$2 million – $800,000 = $1.2 million (let’s loosely assume this is any combination of cash or CPF, available for the next property)
Target upgrade:
- A new three-bedroom in CCR costs about $3 million (based on recent launches like One Marina Gardens)
- Downpayment: 25 per cent minimum ($750,000), and the rest via loan (S$2.25 million).
- Stamp duties & legal fees: Approx. $120,000 (Buyer’s Stamp Duty alone on a $3 million property is already about $114,600)
Couple’s combined income:
- Let’s assume both earn around $8,000 a month each (it’s reasonable to assume it’s above median income, as they’re already living in private property in the CCR)
- Given the Total Debt Servicing Ratio (TDSR) of 55 per cent, this means a monthly loan repayment limit of $8,800 per month (assuming no other debts)
- At a rate of four per cent per annum, on a 25-year loan tenure, this is a loan quantum of between $1.75 million to $1.8 million.
Shortfall Calculation:
- Required loan: $2.25 million
- Eligible loan: Approx. $1.75 million to $1.8 million
- Loan shortfall: Approx. $450,000 to $500,000
Even with $1.2 million in sales proceeds, the couple cannot borrow enough to finance the remaining amount, and must cover the $250,000 to $300,000 gap to make up the shortfall.
Bear in mind that these are already optimistic calculations, with assumptions that the couple have no other loans, have steady incomes of $8,000 per month each, already have a two-bedder in the CCR, etc.
Nonetheless, the CCR is where the majority of new launches will be
We go over some of the main reasons here; but just to recap, 14 of the roughly 22 remaining new launches this year are in the CCR. Coupled with the limited supply of resale units, some buyers may not have much choice; they may have to settle for two-bedder layouts, or some compromises on space.
Meanwhile, in other property news…
- If you’re selling your condo, watch out for this one potentially invisible factor that could impact your chances.
- Can you survive on higher floors without a lift? Yes? Then perhaps a walk-up apartment, like this one, affords more advantage than you realised.
- If you’re willing to settle for resale, here are some of the cheapest two-bedder CCR options right now (from $1.2 million)
- Is paying the premium for a nice view unnecessary? Tell that to the folks who made around $200k just with a nice sea view, at Clement Canopy.
Weekly Sales Roundup (05 May – 11 May)
Top 5 Most Expensive New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| 21 ANDERSON | $24,000,000 | 4489 | $5,347 | FH |
| AUREA | $6,010,945 | 1798 | $3,344 | 99 yrs (2024) |
| WATTEN HOUSE | $5,011,000 | 1539 | $3,255 | FH |
| CHUAN PARK | $4,093,100 | 1550 | $2,641 | 99 yrs (2024) |
| THE ORIE | $3,827,000 | 1453 | $2,634 | 99 yrs (2024) |
Top 5 Cheapest New Sales (By Project)
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| ONE MARINA GARDENS | $1,250,320 | 420 | $2,978 | 99 yrs (2023) |
| PARKTOWN RESIDENCE | $1,262,000 | 506 | $2,495 | 99 yrs (2023) |
| BLOOMSBURY RESIDENCES | $1,400,000 | 570 | $2,454 | 99 yrs (2024) |
| LUMINA GRAND | $1,451,000 | 980 | $1,481 | 99 yrs (2022) |
| CANNINGHILL PIERS | $1,456,000 | 484 | $3,006 | 99 yrs (2021) |
Top 5 Most Expensive Resale
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| THE GLYNDEBOURNE | $7,438,000 | 3541 | $2,100 | FH |
| VIVA | $5,180,000 | 1991 | $2,601 | FH |
| GALLOP GABLES | $4,080,000 | 1733 | $2,354 | FH |
| MARINA BAY SUITES | $3,830,000 | 2056 | $1,863 | 99 yrs (2007) |
| OUE TWIN PEAKS | $3,740,000 | 1604 | $2,332 | 99 yrs (2010) |
Top 5 Cheapest Resale
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | TENURE |
| PARC ROSEWOOD | $630,000 | 431 | $1,463 | 99 yrs (2011) |
| THE INFLORA | $700,000 | 463 | $1,512 | 99 yrs (2012) |
| RIPPLE BAY | $718,000 | 484 | $1,482 | 99 yrs (2011) |
| NOTTINGHILL SUITES | $735,000 | 398 | $1,845 | FH |
| HIGH PARK RESIDENCES | $740,000 | 452 | $1,637 | 99 yrs (2014) |
Top 5 Biggest Winners
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| THE TESSARINA | $3,100,000 | 1335 | $2,323 | $21,448,000 | 18 Years |
| CARABELLE | $2,580,000 | 1389 | $1,858 | $3,991,000 | 24 Years |
| SERAYA VILLE | $2,150,888 | 1432 | $1,502 | $2,180,000 | 24 Years |
| WILLYN VILLE | $1,980,000 | 926 | $2,139 | $1,661,000 | 13 Years |
| THE MINTON | $2,338,000 | 1324 | $1,766 | $1,412,888 | 14 Years |
Top 5 Biggest Losers
| PROJECT NAME | PRICE S$ | AREA (SQFT) | $PSF | RETURNS | HOLDING PERIOD |
| THE SCOTTS TOWER | $1,900,000 | 872 | $2,179 | -$950,000 | 7 Years |
| OUE TWIN PEAKS | $3,740,000 | 1604 | $2,332 | -$827,050 | 11 Years |
| MARINA BAY SUITES | $3,830,000 | 2056 | $1,863 | -$609,000 | 15 Years |
| ONE SHENTON | $1,200,000 | 603 | $1,991 | -$156,750 | 13 Years |
| SKYSUITES@ANSON | $930,000 | 398 | $2,335 | -$121,200 | 12 Years |
Transaction Breakdown
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If you’d like to talk through what a shift like this means for your own timing, purchase, or exit, you can reach out for a one-to-one consultation here.
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Frequently asked questions
Why is it difficult for some homeowners in Singapore's central region to upgrade from a two-bedroom to a three-bedroom condo?
What are the typical costs involved in buying a three-bedroom condo in Singapore's Core Central Region?
How does the price difference impact homeowners looking to upgrade within Singapore's CCR?
Are there affordable options for two-bedroom condos in Singapore's CCR?
What factors contribute to some homeowners being unable to upgrade in Singapore's CCR?
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