Are Small Developments in the Singapore Property Market Unprofitable?

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Are small developments in the Singapore property market really unprofitable? We've always preferred big developments, but with en bloc becoming less common and the government selling land in smaller chunks, it's time to examine whether small developments can still yield good profits.

We dove into three areas in the CCR to examine case studies and the results may surprise you. In the Bukit Timah area, small developments like Hills Apartment and Cliften had annualized gains of 7.6% and 5.4%, respectively. Even developments like Bellerive, with just 51 units, had 100% profitable transactions at an annualized gain of 2.8%.

Moving to the Newton area, small developments like The Spinnaker and Ten@ Suffolk are still doing very well. Even Evelyn Mansions, with just 40 units, had 17 profitable transactions and only 1 unprofitable transaction.
In the Leedon area, smaller developments actually outperformed larger ones like D'Leedon. Holland Suites, with just 15 units, had annualized gains of 4.6%, while Viz at Holland had 19 profitable transactions and just 3 unprofitable transactions.

So, it's a myth that small developments are unprofitable. However, it's important to choose the right one and understand the common characteristics of profitable developments. Look for developments anchored by good schools, with positive transaction trends, or ones that offer a good size.

At the end of the day, it's not about the size of the development, but understanding the market, the buyer's psychology, and the data. Our advice is now more multilayered - don't discount small developments completely.

What do you think about small developments? Have you had any experiences with them? Share your thoughts in the comment box below!
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