When considering a 2-bedroom condominium unit as an investment, a crucial question arises: is it better to opt for one bathroom or two? Conventional wisdom in property investment often dictates that two bathrooms are always preferable. Like desirable features such as high ceilings or scenic views, a second bathroom is often perceived as a feature that justifies its cost and enhances property value.
However, 2-bedroom units with a single bathroom typically come with a lower purchase price. This begs the question: from a capital appreciation perspective, is investing in a 2-bathroom layout truly more profitable than a 1-bathroom layout?
This article delves into an analysis of various condominium projects to determine whether purchasing a 2-bathroom or 1-bathroom layout generally yields better returns in terms of capital appreciation. We will examine price differences and performance data to provide a clearer picture for potential investors.
First, let’s explore the average price variations between 2-bedroom units with one and two bathrooms in recently launched projects.
Note: The data presented here is based on available information from recent projects and may not be exhaustive due to the varying layouts across all developments.
Price Discrepancies: 1 Bathroom vs. 2 Bathrooms
| Projects | 2BR 1BA | 2BR 2BA | Difference |
|---|---|---|---|
| Average Price | Average $PSF | Average Price | |
| KI RESIDENCES AT BROOKVALE | $1,436,700 | $2,053 | $1,374,419 |
| UPTOWN @ FARRER | $1,063,980 | $2,038 | $1,051,296 |
| PARC CLEMATIS | $1,176,456 | $1,688 | $1,175,991 |
| THE FLORENCE RESIDENCES | $1,050,461 | $1,636 | $1,077,639 |
| URBAN TREASURES | $1,294,746 | $1,968 | $1,348,903 |
| AMBER PARK | $1,715,445 | $2,530 | $1,791,414 |
| AVENUE SOUTH RESIDENCE | $1,428,720 | $2,125 | $1,516,691 |
| KOPAR AT NEWTON | $1,540,275 | $2,510 | $1,641,167 |
| THE JOVELL | $899,741 | $1,366 | $963,139 |
| PASIR RIS 8 | $1,187,114 | $1,665 | $1,284,721 |
| BARTLEY VUE | $1,312,455 | $1,999 | $1,424,090 |
| SKY EDEN@BEDOK | $1,420,313 | $2,129 | $1,546,333 |
| DAINTREE RESIDENCE | $1,121,262 | $1,736 | $1,228,456 |
| LENTOR MODERN | $1,468,620 | $2,166 | $1,617,540 |
| ROYALGREEN | $1,800,287 | $2,754 | $1,985,569 |
| IRWELL HILL RESIDENCES | $1,635,263 | $2,665 | $1,808,113 |
| MIDTOWN MODERN | $1,702,396 | $2,743 | $1,889,011 |
| AMO RESIDENCE | $1,421,739 | $2,150 | $1,579,163 |
| PARK COLONIAL | $1,159,711 | $1,821 | $1,299,675 |
| THE TAPESTRY | $872,915 | $1,427 | $980,514 |
| STIRLING RESIDENCES | $1,189,134 | $1,840 | $1,338,703 |
| FOURTH AVENUE RESIDENCES | $1,507,303 | $2,347 | $1,707,518 |
| GRANGE 1866 | $1,928,000 | $2,714 | $2,185,056 |
| THE WATERGARDENS AT CANBERRA | $1,001,338 | $1,494 | $1,136,302 |
| MIDWOOD | $1,070,493 | $1,686 | $1,217,988 |
| RIVERFRONT RESIDENCES | $830,925 | $1,346 | $948,178 |
| ONE PEARL BANK | $1,712,271 | $2,447 | $1,955,754 |
| CLAVON | $1,107,800 | $1,634 | $1,269,921 |
| VERTICUS | $1,367,029 | $2,084 | $1,568,455 |
| DUNEARN 386 | $1,398,000 | $2,498 | $1,607,637 |
| LEEDON GREEN | $1,705,228 | $2,716 | $1,970,234 |
| TREASURE AT TAMPINES | $824,011 | $1,405 | $952,556 |
| NYON | $1,653,417 | $2,293 | $1,911,766 |
| THE LINQ @ BEAUTY WORLD | $1,279,767 | $2,204 | $1,485,133 |
| HYLL ON HOLLAND | $1,512,956 | $2,548 | $1,760,838 |
| AFFINITY AT SERANGOON | $993,360 | $1,589 | $1,157,618 |
| ONE BERNAM | $1,705,514 | $2,387 | $1,988,718 |
| 8 HULLET | $2,268,852 | $3,427 | $2,682,927 |
| JUNIPER HILL | $1,687,071 | $2,806 | $1,995,700 |
| THE COMMODORE | $970,240 | $1,554 | $1,149,033 |
| SENGKANG GRAND RESIDENCES | $1,108,605 | $1,734 | $1,313,995 |
| PARC KOMO | $960,350 | $1,511 | $1,147,754 |
| PARC ESTA | $1,099,055 | $1,741 | $1,314,548 |
| JADESCAPE | $1,109,794 | $1,718 | $1,328,882 |
| FYVE DERBYSHIRE | $1,444,749 | $2,448 | $1,733,168 |
| DAIRY FARM RESIDENCES | $1,003,226 | $1,587 | $1,214,606 |
| 35 GILSTEAD | $1,462,800 | $2,645 | $1,772,234 |
| THE M | $1,514,607 | $2,462 | $1,840,024 |
| PETIT JERVOIS | $2,335,000 | $2,698 | $2,838,146 |
| LIV @ MB | $1,626,914 | $2,444 | $1,990,053 |
| MAYFAIR MODERN | $1,309,400 | $2,098 | $1,606,649 |
| VERDALE | $1,075,024 | $1,752 | $1,321,205 |
| KENT RIDGE HILL RESIDENCES | $1,145,697 | $1,724 | $1,409,880 |
| ONE HOLLAND VILLAGE RESIDENCES | $1,812,127 | $2,624 | $2,244,610 |
| WHISTLER GRAND | $906,475 | $1,472 | $1,123,949 |
| RV ALTITUDE | $1,330,900 | $3,016 | $1,654,800 |
| THE WOODLEIGH RESIDENCES | $1,086,431 | $1,873 | $1,361,103 |
| VAN HOLLAND | $2,018,639 | $2,964 | $2,530,702 |
| VIEW AT KISMIS | $902,667 | $1,747 | $1,135,954 |
| PENROSE | $976,565 | $1,512 | $1,254,890 |
| FORETT AT BUKIT TIMAH | $1,169,574 | $2,019 | $1,506,380 |
| PHOENIX RESIDENCES | $912,598 | $1,514 | $1,197,910 |
| THE HYDE | $1,950,498 | $2,822 | $2,578,087 |
| 3 CUSCADEN | $1,747,151 | $4,162 | $2,749,602 |
| ATLASSIA | $1,305,840 | $2,128 | $2,408,757 |
Projects included are those offering both 1-bathroom and 2-bathroom layouts for 2-bedroom units to ensure a direct comparison.
Generally, as expected, 2-bedroom condominiums with one bathroom are priced lower than their counterparts with two bathrooms. However, there are exceptions. For example, Ki Residences showed a higher average price for 1-bathroom units.
This anomaly at Ki Residences is attributed to transaction timing. Sales of 1-bathroom units predominantly occurred in 2022 when prices were generally higher, while 2-bathroom units were mostly sold in 2020 and 2021. Furthermore, the 1-bathroom units were largely concentrated in a single, potentially more desirable stack. This illustrates that 2-bedroom 1-bathroom units can sometimes be highly sought after and sell quickly.
To understand the investment potential better, we need to look beyond initial prices and analyze capital appreciation.
Capital Gains: 2-Bathroom vs. 1-Bathroom Layouts
Having examined the price differences, the next critical question is how these layouts compare in terms of capital appreciation. To assess this, we analyzed transaction data from the projects listed above, focusing on resale performance.
From the dataset, there were 225 buy/sell transactions. To ensure a meaningful sample size, we focused on projects with at least 10 resale transactions, resulting in a refined dataset of 184 units across seven projects:
| Projects | Volume |
|---|---|
| JADESCAPE | 13 |
| THE TAPESTRY | 16 |
| PARK COLONIAL | 21 |
| WHISTLER GRAND | 22 |
| PARC ESTA | 26 |
| RIVERFRONT RESIDENCES | 38 |
| STIRLING RESIDENCES | 48 |
Analyzing the average performance of these transactions reveals the following:
| 2 Bedroom Type | Average Performance ($) | Average Performance (%) | Annualised Returns (%) |
|---|---|---|---|
| 2B 1B | $170,756 | 17.16% | 4.57% |
| 2B 2B | $200,310 | 16.81% | 4.46% |
The data indicates that the annualized returns for both 2-bedroom 1-bathroom and 2-bedroom 2-bathroom units are remarkably similar. While 2-bathroom units show a slightly higher average profit in dollar terms, the percentage performance and annualized returns are almost negligible differences.
Let’s break down the performance by individual project for a more detailed comparison:
| Average Performance ($) | Average Performance (%) | Annualised Returns (%) | |
|---|---|---|---|
| PROJECT | 1 Ba | 2 Ba | 1 Ba |
| JADESCAPE | $175,633 | $184,778 | 15.70% |
| PARC ESTA | $212,892 | $271,324 | 20.25% |
| PARK COLONIAL | $201,324 | $140,765 | 17.64% |
| RIVERFRONT RESIDENCES | $105,696 | $128,293 | 12.96% |
| STIRLING RESIDENCES | $229,804 | $234,544 | 20.50% |
| THE TAPESTRY | $87,413 | $134,743 | 10.01% |
| WHISTLER GRAND | $183,527 | $238,857 | 21.53% |
Across most projects, the performance difference between 1-bathroom and 2-bathroom layouts remains minimal. Park Colonial is an interesting outlier. In this project, the initial price difference between 1-bathroom and 2-bathroom units was 9.32%. However, upon resale, this premium narrowed to just 3.43%.
This narrowing premium at Park Colonial might be due to market timing. A significant portion of 1-bathroom unit resales (11 out of 12) occurred in 2022, potentially capturing a peak in the market. In contrast, only 5 out of 9 resales of 2-bathroom units happened in the same period.
While drawing definitive conclusions from limited transaction data is speculative, it suggests that market timing and specific project dynamics can influence returns more than a simple rule about bathroom count.
Premium Gap Analysis: Launch vs. Resale
Another perspective is to examine how the premium gap between 1-bathroom and 2-bathroom units changes from the initial launch to the resale market. If a larger initial price gap exists for 2-bathroom units, does this translate to better gains for 1-bathroom units, or potentially poorer returns for 2-bathroom units?
Let’s compare the premium differences at new launch and sub-sale/resale stages for the same projects:
| New Sale | Sub-Sale/Resale | ||
|---|---|---|---|
| PROJECT | 1 Bathroom Avg. Price | 2 Bathrooms Avg. Price | Premium Difference |
| RIVERFRONT RESIDENCES | $822,758 | $938,352 | 14.0% |
| WHISTLER GRAND | $896,940 | $1,108,107 | 23.5% |
| PARC ESTA | $1,087,088 | $1,305,694 | 20.1% |
| JADESCAPE | $1,103,495 | $1,324,816 | 20.1% |
| PARK COLONIAL | $1,147,563 | $1,293,829 | 12.7% |
| STIRLING RESIDENCES | $1,175,613 | $1,326,002 | 12.8% |
| THE TAPESTRY | $869,645 | $969,645 | 11.5% |
Projects like Whistler Grand, Parc Esta, and Jadescape initially priced 2-bathroom units at a premium of over 20% compared to 1-bathroom units. Resale data suggests that this premium was largely maintained or even increased (as seen in Parc Esta), potentially justifying the higher initial price.
Conversely, a smaller initial premium gap doesn’t guarantee it will widen over time. Park Colonial, with a 12.7% initial premium, saw this gap narrow to 4.4% in the resale market.
However, similar to the capital gains analysis, these premium differences can also be influenced by transaction timing and market conditions, making it difficult to draw definitive conclusions solely based on premium gaps.
Qualitative Factors Beyond the Data
Beyond the quantitative data, several qualitative factors influence the desirability and potential rental income of 2-bedroom units, which are not directly reflected in price appreciation figures.
Rentability and Tenant Preference:
For tenants sharing a 2-bedroom unit, whether roommates or unrelated individuals, two bathrooms are almost always strongly preferred. The convenience and privacy afforded by separate bathrooms are significant advantages in shared living situations. Imagine the morning rush hour conflict when multiple occupants need to use a single bathroom – this is a common pain point for tenants.
Some tenants, especially female tenants sharing with unrelated individuals, may prioritize having a private bathroom or sharing a bathroom only with someone of the same gender for enhanced privacy and comfort.
Drawbacks for Single Occupants:
Conversely, a realtor pointed out that single tenants renting a 2-bedroom unit for themselves might view a second bathroom as unnecessary. For individuals living alone, an extra bathroom means additional cleaning and maintenance, without providing significant benefit. These tenants might prefer a larger living area over a second bathroom.
Resale Considerations and Long-Term Value
Realtors generally agree that selling a 2-bathroom unit is typically easier than selling a 1-bathroom unit. While this doesn’t guarantee a higher selling price, it can translate to a faster sale. This ease of resale is often attributed to the prevailing perception that 2-bathroom units are inherently better investments.
Furthermore, a 2-bathroom unit offers greater flexibility and future-proofing. While a single person might find one bathroom sufficient, circumstances change. If the owner decides to live with a partner, start a family, or rent out the unit in the future, the second bathroom becomes a valuable asset. Choosing a 2-bathroom unit can mitigate potential regrets later on as needs evolve.
Conclusion: Balancing Quantitative and Qualitative Aspects
The data suggests that in terms of pure capital appreciation, the difference between investing in a 2-bedroom 1-bathroom versus a 2-bedroom 2-bathroom condominium unit is not statistically significant. While 2-bathroom units often command a higher initial price, the annualized returns appear to be comparable to 1-bathroom units.
However, the qualitative advantages of a 2-bathroom unit, particularly in terms of rentability and resale desirability, should not be overlooked. For investors focused on rental income or long-term resale potential, the enhanced tenant appeal and broader marketability of a 2-bathroom unit can be compelling factors.
Ultimately, the “better” investment depends on individual investor priorities. For budget-conscious investors prioritizing initial cost, a 2-bedroom 1-bathroom unit can offer a more affordable entry point into the property market without sacrificing significant capital appreciation potential. For investors focused on long-term value, rentability, and ease of resale, the slightly higher investment in a 2-bedroom 2-bathroom unit might be justified by its enhanced market appeal and tenant preference.
When making your decision, consider both the data and the qualitative factors, and align your choice with your specific investment goals and risk tolerance in the dynamic property market.
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