Studio units (under 50 sqm) deliver 4.5–5.0% gross yield in Singapore 2026 vs 1-bedroom (50–60 sqm) at 3.5–4.0%. Studios outperform on yield per dollar but trade lower absolute rent, faster wear and tear, and weaker capital appreciation. 1-bedrooms attract longer-stay tenants (couples, executives) and appreciate at similar rates to 2-bedrooms.
Studio vs 1BR: side-by-side
| Item | Studio (under 50 sqm) | 1-bedroom (50-60 sqm) |
|---|---|---|
| Typical purchase price (RCR) | S$700-900k | S$900k-1.1M |
| Monthly rent (RCR) | S$2,800-3,400 | S$3,500-4,200 |
| Gross yield | 4.5-5.0% | 3.5-4.0% |
| Tenant turnover | High (12-18 months avg) | Lower (18-24 months avg) |
| Wear and tear | High (single tenants, short stays) | Medium |
| Capital appreciation (5 yr) | +15-20% | +18-25% |
| Tenant pool | Singles, expats short-term | Couples, families, longer leases |
When to pick which
- Studio for yield investor: Pure cash-flow focus, short-hold (3-7 years), accepting higher operational intensity
- 1-bedroom for balanced: Mid-term holders (5-10 years), wanting both rental + capital growth
- Avoid studios for 2026 surge: With high supply in OCR completing, studio rents may compress more than 1BR
See investment framework.
FAQ
Is studio Airbnb allowed?
Only with URA Short Term Accommodation approval (specific projects only). Most condos prohibit STA.
Are studios harder to sell?
Studio resale demand is steady but more cyclical. In cooling cycles, studio resale stalls first.
What's the minimum size for "studio"?
URA defines studio as a single-room layout. Practical floor area: typically 30-45 sqm.