Do larger homes provide higher capital appreciation?

In the context of Singapore's real estate market, the size of a home can indeed influence its capital appreciation, although it is not the only factor.

Generally, larger units tend to appreciate in value more steadily compared to smaller ones. Here are some key points:

- Larger units, particularly those above 750 square feet, have shown a steady appreciation in value. Units between 1001 and 1250 square feet and those between 1251 and 1500 square feet have performed particularly well.
- These larger units are also more resilient against market downturns. During the period from 2013 to 2018, when the property market was softening due to cooling measures, larger units recovered to their previous highs more quickly than smaller units.
- The number of bedrooms also plays a role, with properties having more bedrooms typically experiencing better capital appreciation. This aligns with conventional wisdom that larger, multi-bedroom units tend to retain and increase their value over time.

However, it's important to note that smaller units, especially one and two-bedroom apartments, can still be valuable investments, particularly for those with smaller budgets. These units are often in high demand and can command a premium price, especially if they are well-located and offer modern amenities.

In summary, while bigger homes generally offer higher capital appreciation, the overall performance of a property also depends on factors such as location, amenities, and market conditions.