QUOTE(Pai @ May 12 2008, 02:17 PM)
Depends on one's perspective. Your r right to point out that there's much, much bigger pool market for 3 bedrooms condo. However, bare in mind that there's much, much, much bigger supply for 3 bedrooms condo as well.
In fact, its easier to dispose studio's due to the following reason :
1. Cheaper entry cost as its smaller comparatively to a 3bedroom unit. Plus TS wanted to use it for their weekend getaway or rent it out, so I think studio fits the bill.
2. Higher rental yield. Using Amcorp and Casa Mutiara as an example, a studio unit (cost 160k) can be rented out for up to 2k, but the 2 bedroom (cost 310k) current rental rate is at 2.8k. Capital gains for studios has generally outperform the 2b or 3b within the same development.
3. Lastly, high rental demand but limited supply. U wont believe how fast I cant rent out my studio's and the returns im getting.
but only for prime area's right? In fact, its easier to dispose studio's due to the following reason :
1. Cheaper entry cost as its smaller comparatively to a 3bedroom unit. Plus TS wanted to use it for their weekend getaway or rent it out, so I think studio fits the bill.
2. Higher rental yield. Using Amcorp and Casa Mutiara as an example, a studio unit (cost 160k) can be rented out for up to 2k, but the 2 bedroom (cost 310k) current rental rate is at 2.8k. Capital gains for studios has generally outperform the 2b or 3b within the same development.
3. Lastly, high rental demand but limited supply. U wont believe how fast I cant rent out my studio's and the returns im getting.
Feb 23 2009, 01:36 AM

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