Should developers build more one-bedroom condo units?

[SINGAPORE] Amid rising private home prices, developers here are increasingly adept at fitting more bedrooms into compact spaces.

While an old two-bedroom unit might be over 1,000 square feet (sq ft), the new condominium project Vela Bay, which has direct access to the Bayshore MRT station, has two-bedroom units sized at 592 sq ft each. 

Understandably, developers keep condo unit sizes compact to manage the absolute prices and affordability of units.

Nonetheless, while new two, three and four-bedroom condo units may be generally getting smaller, developers appear to be hardly building any new one-bedroom units.

Recently launched condo projects River Modern in the River Valley area and Pinery Residences in Tampines did not have any one-bedders among their 455 and 588 homes, respectively.

There are no one-bedders among the 327 homes at the one-north project Hudson Place Residences, which will book sales from May 16.  

There are six one-bedroom units, representing 0.7 per cent of the 863 homes at Tengah Garden Residences in the Tengah area.

Among Vela Bay’s 515 homes are 27 one-bedders, accounting for 5.2 per cent of its housing inventory.

The one-bedders were well-received at the launches of both Tengah Garden Residences and Vela Bay.

Certainly, some older iterations of one-bedders at condo developments of under 500 sq ft each may not be perceived as offering good quality living space possibly due to design flaws. This in turn affected the resale of such units.

Also, with the high rate of additional buyer’s stamp duty (ABSD) that applies to Singapore citizens and permanent residents buying second and subsequent homes as well as foreigners buying any home, homebuying purely for investment purposes slowed.

Given the above factors, developers have perhaps justifiably shied away from providing one-bedder units in new condo projects.

However, looking ahead, developers have reasons to consider building more one-bedroom units in new condo projects.

Financial considerations

One, while many potential condo buyers who are buying for owner occupation, including couples without kids and singles, may prefer having more space with a two-bedder instead of a one-bedder, might such preferences change?

A recent study by PropertyGuru found that singles looking at condos focused entirely on two and three-bedroom units, with no interest in one-bedroom layouts.

However, rising new condo prices may make buyers think twice about shunning one-bedders.

Assume a new two-bedroom suburban condo unit is 160 sq ft larger than a one-bedder and the selling price is S$2,300 per square foot. In this case, choosing a one-bedder over a two-bedder translates into savings of S$368,000.

Given a one-bedroom condo unit’s lower absolute price, more potential buyers can afford such a home. For example, some potential buyers may be able to secure the down payment or loan for only a one-bedder unit.

In addition, a one-bedder unit’s owner typically incurs lower recurring costs as management fees and maintenance costs are generally higher for larger units.

Importantly, property tax on homes is progressive – higher rates apply to properties with higher annual value (AV).

The AV of buildings is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings and maintenance fees.

In a condo development, a one-bedder unit’s AV would typically be lower than that of other unit types.

The owner-occupier and non-owner-occupier residential property tax rates range from 0 to 32 per cent and 12 to 36 per cent, respectively.

Excluding any rebates, the annual property tax of an owner-occupier is S$720 for a home with AV of S$30,000 and S$1,720 for a unit with AV of S$50,000.

The annual property tax for non-owner-occupied homes with AVs of S$30,000 and S$50,000 are S$3,600 and S$8,000, respectively.

Leasing demand

Two, a buyer of a private home for rental returns may find a one-bedder unit attractive.

For one thing, the higher property taxes of homes with higher AVs lower the net yield of such units.

Crucially, many tenants might choose one-bedder condo units.

As Singapore moves up the economic value chain, the Republic could draw more high-skilled and well-paid foreigners, who seek private rental housing.

As it stands, the qualifying salaries for Employment Pass holders will rise, with the changes kicking in from the start of 2027 for new applications and the start of 2028 for renewal applications. In December 2025, there were 203,300 Employment Pass holders.

Among foreigners working here are many singles or couples without kids who do not have housing allowances. A one-bedder condo unit could suit said potential tenants from a price and quality-of-living standpoint.

Meanwhile, there may be a relative scarcity of one-bedroom condo units as developers are hardly building such units in new projects.

In addition, there could be a sizeable pool of investors who may consider one-bedder condo homes. 

A Singapore citizen or PR couple who own a home for owner occupation under one partner’s name might look to purchase another home for investment under the other partner’s name. ABSD does not apply to a Singapore citizen buying his first home, while a PR first-home buyer pays 5 per cent ABSD.

Demographics

Three, resident households here are generally getting smaller, and the population is rapidly ageing.

A growing pool of one and two-person households could be a rich source of demand for one-bedder condo homes.

About four in 10 resident households comprise one or two persons.

Among resident households, the share of one-person households was 16.7 per cent in 2025, up from 16 per cent in 2020 and 12.2 per cent in 2010.

The share of two-person resident households was 23.8 per cent in 2025 versus 22.6 per cent in 2020 and 18.8 per cent in 2010.

Meanwhile, the share of Singapore citizens aged 65 years and over was 20.7 per cent in 2025, up from 16.8 per cent in 2020 and 10.1 per cent in 2010. By 2030, around one in four Singapore citizens may be aged 65 years and over.

A one-bedder condo unit could suit elderly local couples, singles and widows/widowers who seek private housing.

Buying a smaller-sized condo unit for owner occupation means tying up less capital in a home, thus freeing up more funds for lifestyle needs or investing to earn recurring income.

Importantly, a senior may find the ease of getting around and maintaining a one-bedder 450 sq ft condo home appealing.

While having more space in a home is desirable, small can be beautiful.

Going forward, condo developers might prosper by building more one-bedder units which are well-designed, sited in a good stack and have premium fittings as there could be significant demand for such units.