Are 1 Bedroom Condos a Good Investment? – Despite Warnings

Introduction

There’s a common belief in the market that 1-bedroom condo is a sub optimal investment asset and we should avoid it at all cost.

The usual warnings are as follows –  limited capital upside, weaker resale demand, and higher risk compared to 2 bedroom units.

But here’s the thing. One-bedroom units are still transacting well in both the new launch and resale markets. While it is true that two-bedroom units offer notable advantages over a one bedroom unit. We still believe that one-bedders continue to serve a clear purpose for a specific group of investors.

This article was not written with the intent to encourage you to get a one bedroom condo. Instead, we would like to break things down with logic and numbers and unravel if one bedroom condos are really unprofitable and if there is a way to select one bedroom units that can still bring in healthy profits. 

Investor and Buyer Profile for 1 Bedroom Condos

You’re most likely looking at a 1-bedroom condo if you fall into one of these buyer profiles:

Budget-Constrained Investors

You are a second property buyer who wants to keep your capital outlay low and avoid overstretching their finances. You fall into this group if you’re planning to decouple your current property or are buying a 2nd property using the HDB owner-occupier scheme.

Yield-Focused Investors

You are a passive income investor prioritising rental income over capital appreciation. The goal is simple: buy a low-quantum property, pay down the loan fully, and enjoy passive rental cash flow. It’s a common strategy among retirees who prefer stable, lower-risk returns.

Singles or Couples Without Kids

For younger buyers purchasing their first condo, affordability often limits the options. A 1-bedder offers a way to enter the private property market without overstretching financially.

All in all,  while 1-bedders may not suit every profile, they clearly serve a role in the investment consideration set of selected buyers.

Key Reasons Why Investors and Buyers Are Attracted to One-Bedroom Condos

Now that we’ve established who’s buying 1-bedders, let’s break down why these units continue to appeal—despite their reputation.

Low Initial Capital Outlay

A 1-bedroom condo typically requires much less cash and CPF upfront compared to a 2-bedder. 

Lower Monthly Mortgage Obligation 

Smaller loan quantum means lower monthly instalments. This reduces monthly financial commitment and gives you stronger holding power, reducing stress even if rental income dips or interest rates fluctuate.

Lower Transaction Costs

Buyer stamp duty is one of the bigger upfront costs in any property purchase. Because 1-bedroom units come with a lower quantum, you naturally save more here. Every dollar saved on BSD and interest adds to your net gain.

Easier to Achieve Cash Flow Positiveness

For those looking to create positive cash flow from property. Smaller loans, lower interest expense, lower maintenance fee, coupled with decent rental income make it easier to hit positive monthly cash flow. 

But while the upside looks clear, let’s not forget the biggest concern holding most investors back. Let’s unpack that next.

Despite the advantages we’ve covered, there are cautionary downsides to getting a one bedroom condo. We will need to be mindful of these risks when investing in one. 

The Common Concern That Often Surrounds a One-Bedroom Condo as an Investment Property

Concern over profitability

Plenty of case studies have circulated showing sellers exiting their 1-bedroom units with little to no gain and some even at a loss. The concern over the profitability of one bedroom units is real, that is why we dedicated an entire section exploring the profitability of one bedder. 

Jumping the gun, from our experience we still buyers profiting healthily from one bedder that possesses the right attributes and the one bedders that are making headlines for losses are typically coming from the CCR region and possess a specific set of attributes that leads to their poor resale demand. 

Concern over ease of sale

Ease of sale is a common concern for one-bedroom units, as they appeal to a narrower pool of buyers compared to two- or three-bedroom units. This makes liquidity a valid consideration when evaluating a one-bedder as an investment.

In the next section, we will dive into exploring the profitability of one bedroom condos. 

Research Method

To assess the profitability of 1-bedroom condos, we analysed resale transactions across 12 condo developments that received Temporary Occupation Permit (TOP) between 2015 and 2023.

These developments were chosen based on a few criteria:

• They span across all 3 URA zones—Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR)—to give a balanced geographic view.
  
• Each development is mid- to large-sized, with at least 300 units. This ensures sufficient transaction volume for meaningful analysis.
  
• All projects contain a mix of 1-, 2-, and 3-bedroom units. This allows us to compare how 1-bedders stack up in profitability versus their larger counterparts.

With that context in place, let’s look at what the numbers actually say.

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We are a team of specialist realtor that specialises in helping our readers research, shortlist and purchase investment properties. 

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Profitability of 1-Bedroom Condo vs 2-Bedroom Condo

Let’s now look at the numbers.

Referring to the chart above, 2-bedroom condos clearly generate higher average profits—about $221,752, compared to $144,787 for 1-bedroom units.

But here’s where things get interesting.

Looking purely at profit quantum can be misleading. It doesn’t reflect how much capital was needed to generate that return.

If we assume a typical property purchase with 75% financing, the average capital input (cash + CPF) would be:

• $228,055 for a 1-bedroom
• $318,771 for a 2-bedroom

Now if we factor that in, the return on capital tells a different story:

• 1-bedroom condos deliver an average return of 65%
• 2-bedroom condos edge ahead at 73%

So yes, 2-bedroom units are more profitable in absolute dollar terms. But the idea that 1-bedders is unprofitable is not absolute truth. On average, they still deliver decent returns, especially for buyers working with smaller capital.

Profitability of One-Bedroom Condo Across Different Districts

While the earlier analysis shows that 1-bedroom condos bring in an average profit of $144,787, it’s important to zoom in on the details.

Digging deeper into that average figure unrival several important insights.

We’ve seen many 1-bedroom units that ended up with minimal gains with just enough to cover costs. Worse still, some units exit at a loss, once you factor in stamp duty, interest, and agent fees.

From our on-ground experience, these underperforming 1-bedroom units tend to cluster in specific districts, especially within the Core Central Region (CCR). Many also share common traits that limit their buyer appeal or rental demand.

This is why a one-size-fits-all conclusion doesn’t work here. Instead, we need to go one level deeper.

By breaking down the profitability of 1-bedroom condos across different districts, we can better understand the specific attributes that make or break a 1-bedder investment.

Profitability of One-Bedroom Condo in CCR

Unprofitability of 1 Bedroom Condo in CCR

Profitability of One-Bedroom Condo in RCR

Profitability of One-Bedroom Condo in OCR

Summary of Insights

Looking at the tables above, a common pattern emerges. 1-bedroom condos in the CCR consistently underperform compared to their RCR and OCR counterparts.

From a pure profit perspective, CCR units deliver weaker returns. But more telling is the number of unprofitable transactions in CCR. In the RCR and OCR, such cases are rare. In the CCR, they’re common.

Several common attributes can be identified amongst one bedders in CCR. Chief among them.

• Higher purchase quantum – CCR entry price of $1.1 mil to $1.2 mil compared to RCR at $700k to $900k 
• Bigger layouts – average size of 576 sqft in CCR vs 480 sqft in RCR and 522 sqft in OCR
• Higher average psf in CCR
• Greater supply of competing 1 bedroom unit in CCR

This set the stage for the next section pertaining to what are the specific factors you need to look at when choosing a 1-bedroom unit?

5 Factors to Note When Selecting a Profitable One-Bedroom Condo for Investment

Referencing insights from data, coupled with experience. 1-bedroom condos can be profitable provided it possess the right qualities.

Here are the key factors that matter most:

#1 – Entry Price / Purchase Quantum Takes Priority

If you’re buying a 1-bedder, entry price / purchase quantum is everything.

The reason RCR and OCR 1-bedroom units outperformed those in the CCR is simple—they were bought at significantly lower quantums.

Investors in this segment are capital-conscious. The lower the capital input, the stronger the upside potential on return and yield. In contrast, many CCR units priced above $1.1M–$1.2M end up losing appeal to these buyers

Note purchase quantum is a factor of both average psf pricing and average size, hence both entry price and layout efficiency are important factors to be taken into consideration.

#2 – Watch the Price Gap Between 1-Bedroom and 2-Bedroom Units

A common mistake is buying a 1-bedder that’s too close in price to a 2-bedder.

If your 1-bedroom is going for $1.3M to $1.4M, and a 2-bedroom in the RCR or OCR is available at $1.2M to $1.6M, your future buyer will likely stretch for the extra room.

This is a real issue in older CCR developments where large unit sizes and high PSF tilt its pricing out of alignment.

#3 – Optimize for Minimum Size, Maximum Efficiency

A smaller, well-laid-out 1-bedder beats a larger inefficient one.

Efficient layouts reduce purchase quantum while maintaining livability. This is especially important as buyers today are more cost-sensitive.

One bedders in newer launches like One Marina Garden, that avoid oversized balconies, planter boxes, and aircon ledges tend to perform better in this regard.

#4 – Check Competing Supply in the Area and Within the Project

If the development has too many 1-bedroom units, competition becomes a problem—both for rental and resale.

Less supply means better rental occupancy, stronger pricing power, and fewer resale listings to compete with when you exit.

#5 – Always Optimize for Renter Demand and Yield

MRT proximity, commercial nodes, and surrounding amenities matter. If you’re buying resale, study the tenant profile. Are tenants renting here because they want to, or because it’s the cheapest option around?

You want to position yourself in a project that’s preferred, not just affordable.

For relevant read refer to article – Highest Rental Yield Condo in Singapore that are actually investable. 

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What About Ease of Sale? Are One-Bedroom Condos Really Hard to Sell?

From our on-ground experience, It is true that 1-bedders are generally harder to sell.

You’re working with a narrower buyer pool, targeting investors, singles, couples without kids and retirees looking to create passive income. That’s reality, and it shouldn’t be ignored.

But here’s an interesting counterpoint.

When we look at average holding durations, the data tells an interesting story. Across all districts, the average holding period for 1-bedroom units is about 6 to 7 years, almost identical to that of 2-bedders.

This reassure us that despite the smaller exit buyer pool for 1 bedroom units. It is not drastically harder to liquidate a 1 bedroom unit profitably.

The key is that you will need to make sure you have strong holding power when buying a 1 bedder. You will need to manage your mortgage and cash flow well. This allows you to time your exit well and achieve your intended profit.

When Is the Best Time to Buy a One-Bedroom Unit?

If you’re thinking of entering the 1-bedder market, timing matters.

The best time to buy is usually when other owners are under pressure to sell.

• During economic downturns, some owners—especially those with multiple properties—may be forced to offload quickly to free up cash.
  
• When interest rates are high, holding costs increase. If the owner is cash flow negative, that urgency to sell grows.

Conclusion: Is a 1-Bedroom Condo a Good Investment?

Relevant research with regards to investing in 1 Bedroom Units

• Best 1 Bedroom Condo below 1 million dollars in Singapore
• 1 Bedroom or 2 Bedroom condo investment Singapore – Which is better ?
• Cheapest 1 bedroom condo in the city fringe
• Are 3 bedroom compact new launch worth investing in ?
• Are 1 bedroom condos still a good investment in 2026 ?

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