Does condo size affect returns?

[Ringo33]

Any expert here has got any insight to this? Will the size of a development affect the rental yield and capital appreciation?

Ie the bigger the development the lower your returns.

[star]

Smaller size unit is better for condo. Easier to sell, higher rental yield.

[minority]

but smaller size resale yield in terms of $ value is lower due to the multiple of pdf to $ gain.

larger units have better quantum gain but rental yield is lower. and in bad times are hard to rent out. I find 2 bedder a sweetspot actually.

[thomastansb]

Doesn't really matter. The most $100 difference for a studio. Location is more important. Having MRT within 5 mins walk will boost your returns by 20 to 30%.




Any expert here has got any insight to this? Will the size of a development affect the rental yield and capital appreciation?

Ie the bigger the development the lower your returns.

[Ringo33]

Doesn't really matter. The most $100 difference for a studio. Location is more important. Having MRT within 5 mins walk will boost your returns by 20 to 30%.

Actually I think it does matter because when a project has got more units, there will naturally be more owners looking for tenant hence rent will be depressed by those who are more desperate to find a tenant. Plus comparing rent amount alone doesnt really tell the average time it take for owners to find a tenant.

[Dragonfly]

For large development, there are more units to compare, hence, there will be fierce competition. Agents have to understand clients' likes/dislikes to help the them find their preferred choice and also helping owners to get better pricings, etc, pool facing, unblock view, high or low floor.

Personally, I think for rental, 2-3 bedrooms seem to be popular.
For selling, it can be any types of unit.

[DC33_2008]

Rental demand is all about tenants' budget with respect to expectation and location. $4-5k seems to be normal in cityfringe area. City centre will be more than 5k. Hence, the 1-2 bedder is more popular in these two areas. Suburb may be very different.
For large development, there are more units to compare, hence, there will be fierce competition. Agents have to understand clients' likes/dislikes to help the them find their preferred choice and also helping owners to get better pricings, etc, pool facing, unblock view, high or low floor.

Personally, I think for rental, 2-3 bedrooms seem to be popular.
For selling, it can be any types of unit.

[Newbie1]

No of similar size units available definitely affect competition

If developments only have very few units of the size that one owns then chances of getting better deals are better.

Quantum for rental is a big factor. Anything >5-6k, pool of tenants is so much smaller.