What is a good investment size for a condo in Singapore

When considering condo size as an investment in Singapore, several factors come into play, including the number of units, location, and market demand.

Mid-Sized to Big Developments

Condos with around 100 to 700 units are often considered mid-sized to big developments. These projects are generally more reasonably priced and offer a balance of amenities and affordability. They are often preferred by both home buyers and investors because they provide extensive facilities and typically lower costs per unit compared to smaller developments. For example, developments like Midtown Bay, Dairy Farm Residences, and The Jovell fall into this category.

Boutique or Small Developments

Smaller developments, often referred to as boutique developments with fewer than 100 units, can be attractive for those seeking exclusivity and prime district locations. However, these units tend to be more expensive on a per-square-foot basis due to the higher costs spread over fewer buyers. They may appeal to home buyers with higher budgets who value exclusivity.

Mega Projects

Developments with over 1,000 units, known as mega projects (such as Parc Clematis, Parc Esta, and Treasure@Tampines), offer a wide range of amenities and generally lower costs per unit. These projects can be beneficial for genuine home buyers who appreciate the extensive facilities. However, investors should be cautious about potential rental and resale drawbacks.

Key Considerations

• Location: Properties in prime areas, even if they are smaller developments, can still be lucrative.
• Land Size and Building Height: Smaller land sizes and lower building heights can sometimes be associated with unprofitable condos, so these factors should be carefully considered.
• Market Demand: The demand for condos in certain regions, such as the Outside Central Region (OCR), can be higher and more profitable than in other areas.
• Additional Costs: Developers' costs, such as the Additional Buyers Stamp Duty (ABSD), and the need to sell all units within five years to avoid penalties, can influence the pricing and viability of the investment.

Ultimately, the best condo size for investment depends on your specific needs, budget, and investment goals. It is advisable to use tools available on EdgeProp Singapore, such as the Fair Value tool and market trends tracker, to make data-driven decisions and find the most suitable property for your investment strategy.