Recently, many young professionals working in Singapore have asked us whether it’s worthwhile to purchase a one-bedroom condo. Indeed, for young individuals, after careful consideration, inquiries about one-bedroom condos are usually the first step. Today, we will seriously address this common home-buying question among many young people.
When it comes to buying a one-bedroom condo in Singapore, we first need to clarify the purpose of the purchase. If you are financially well-off and looking to improve your living environment, a one-bedroom condo is an excellent choice. The obvious advantage is having a cozy home of your own, eliminating the hassles associated with renting. Price is another significant benefit; compared to two-bedroom or larger apartments, one-bedroom units are often smaller and thus more affordable, reducing the financial burden of purchasing a home. In the long run, a one-bedroom condo also has its merits. If you start a family in the future and need a larger property, you can rent out the one-bedroom unit. As a rental property, a one-bedroom condo’s rental yield is often much higher than that of two-bedroom or larger units, making it a good investment avenue. If you are interested in purchasing or investing in a one-bedroom condo in Singapore, you can consult Leo Kwek (郭耀阳), who will provide professional advice and solutions based on your needs.
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| Tenure | Breakeven | Loss | Profit | Loss | Profit |
|---|---|---|---|---|---|
| Freehold | 3 | 567 | 1,048 | – 6.68% | 8.60% |
| 999-year | 37 | 39 | – 6.27% | 9.90% | |
| Leasehold (60 years) | 4 | 72 | – 2.84% | 9.66% | |
| Leasehold (99 years) | 7 | 304 | 1,753 | – 5.93% | 13.68% |
| Total | 10 | 912 | 2,912 | – 6.40% | 11.70% |
However, if you are looking to purchase a one-bedroom condo in Singapore for investment purposes, as mentioned earlier, we would recommend generating returns through rental rather than resale. Historical data shows that the resale profits of one-bedroom condos tend to decrease over time. Looking at the rental yield of one-bedroom condos from another perspective, 99-year leasehold units typically offer higher returns than freehold ones, with the former yielding 13.68% and the latter 8.6%.
This is because freehold condominiums command a premium of up to 20% over 99-year leasehold condominiums. Therefore, it is not surprising that the overall transaction profit for 99-year leasehold condos is higher.
In conclusion, you should now have an answer to the question, “Is it worth buying a one-bedroom condo in Singapore?” If you feel you have the need to purchase or invest, please feel free to contact us, and we will provide more detailed advice.
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