Determine what to buy - one or two bedroom - Part 2

Two bedroom property in general has proven to be the most resolute player in any market condition and less susceptible to adverse outcomes during periods of economic downturn.

For the time being, let us analyse the three major reasons behind their unfaltering solid performance in the real estate market:

1. Broader Target Market

The interest received for a two bedroom property can span from young couples and first home buyers who are after a bit of space, downsizers and empty nesters who are looking to downsize, and young families who are willing to compromise on space.

The “one size fits all” attribute of a two bedroom property provides suitability to a broader target market when compared to a one bedroom.

2. Higher Demand

The ripple effect caused by this resilience factor leads to a higher demand and stronger market activity for a two bedroom property. The past sales record shows that 3 out of 5 units sold are associated with two bedroom, while only 1 out of 5 units sold is linked to one bedroom. This result proves the saleability of a two bedroom is second to none by a wide margin.

3. Better Capital Growth

As most sales are related to a two bedroom, more often than not, it acts as a determinant of median unit price for any area. Consequently it is fair to suggest that a two bedroom property will be the first to react to any price growth or fluctuation, while others will experience the price changes through its domino effect. In other words, it serves as a benchmark for future capital gain in unit values and therefore propels the capital growth for two bedroom at a higher and faster rate than one bedroom.

We will continue our discussion and analysis on this subject in the next article.

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