What makes a small boutique condo profitable?

Boutique condos are something of a niche buy. Often with 100 units or less (in some cases even fewer than a dozen units), these projects are known to be typically volatile: transactions tend to be few, so even a single outlier can greatly skew prices up or down.
Plus, there's the issue of higher maintenance fees, given such a low unit count. But as some people love the exclusivity, a common question we're asked is: where can I find a profitable boutique condo? We decided to take a look at some of the more successful ones to see what we can learn:
The following shows transactions of boutique condos, between 2014 to 2024 with at least five buy/sell transactions:
Projects | District | Planning Area | No. of Buy/Sell Tnx | Avg. Annualised (per cent) |
LA SUISSE | 11 | Bukit Timah | 5 | 6.8per cent |
LE CONNEY PARK | 15 | Bedok | 6 | 5.0per cent |
CITY LOFT | 8 | Kallang | 6 | 4.8per cent |
MABELLE | 15 | Bedok | 8 | 4.7per cent |
THE PRINCETON | 10 | Tanglin | 6 | 4.7per cent |
THE BALE | 15 | Bedok | 5 | 4.6per cent |
VIENTO | 14 | Geylang | 6 | 4.5per cent |
THE MEDLEY | 15 | Bedok | 5 | 4.4per cent |
THE SPINNAKER | 11 | Novena | 5 | 4.3per cent |
EVELYN MANSIONS | 11 | Novena | 5 | 4.1per cent |
AXIS @ SIGLAP | 15 | Bedok | 6 | 3.8per cent |
ONE TREE HILL RESIDENCE | 10 | River Valley | 5 | 3.7per cent |
BLISS LOFT | 12 | Novena | 5 | 3.7per cent |
PRESTIGE LOFT | 15 | Bedok | 5 | 3.5per cent |
THE VUE | 19 | Serangoon | 5 | 3.3per cent |
THE GLACIER | 15 | Bedok | 5 | 3.1per cent |
DAISY SUITES | 13 | Serangoon | 5 | 2.9per cent |
MAYFAIR RESIDENCES | 15 | Bedok | 7 | 2.6per cent |
EDENZ SUITES | 14 | Geylang | 5 | 2.4per cent |
THE SILVER FIR | 15 | Geylang | 5 | 2.2per cent |
RESIDENCES 88 | 14 | Bedok | 5 | 2.1per cent |
LAVERNE’S LOFT | 15 | Bedok | 6 | 2.1per cent |
THE SANCTUARY @ GEYLANG | 14 | Geylang | 6 | 2.0per cent |
PALMERA RESIDENCE | 15 | Bedok | 6 | 2.0per cent |
DE CENTURION | 15 | Kallang | 5 | 1.9per cent |
VIIO @ BALESTIER | 12 | Novena | 9 | 1.9per cent |
CITIGATE RESIDENCE | 8 | Kallang | 5 | 1.9per cent |
SUITES @ KOVAN | 19 | Hougang | 6 | 1.8per cent |
NATURALIS | 15 | Bedok | 6 | 1.8per cent |
LA FLEUR | 14 | Geylang | 6 | 1.7per cent |
THE NAVIAN | 14 | Bedok | 11 | 1.7per cent |
LOFT 33 | 14 | Geylang | 11 | 1.6per cent |
SUITES @ EUNOS | 14 | Bedok | 5 | 1.6per cent |
SUITES @ SIMS | 14 | Geylang | 6 | 1.5per cent |
24 ONE RESIDENCES | 5 | Queenstown | 5 | 1.5per cent |
BERKELEY RESIDENCES | 15 | Bedok | 9 | 1.5per cent |
FLORAVILLE | 28 | Ang Mo Kio | 10 | 1.5per cent |
LEICESTER SUITES | 13 | Toa Payoh | 6 | 1.5per cent |
DEVONSHIRE 12 | 9 | River Valley | 5 | 1.4per cent |
THE BENTLY RESIDENCES@KOVAN | 19 | Hougang | 11 | 1.3per cent |
ASCENT @ 456 | 12 | Novena | 11 | 1.3per cent |
8 FARRER SUITES | 8 | Kallang | 5 | 1.2per cent |
PARK RESIDENCES KOVAN | 19 | Hougang | 5 | 1.2per cent |
THE COTZ | 15 | Bedok | 9 | 1.1per cent |
HILBRE28 | 19 | Hougang | 7 | 1.1per cent |
183 LONGHAUS | 20 | Bishan | 7 | 0.9per cent |
MULBERRY TREE | 11 | Novena | 6 | 0.9per cent |
REZI 35 | 14 | Geylang | 5 | 0.9per cent |
LOFT@HOLLAND | 10 | Bukit Timah | 6 | 0.9per cent |
PARC SOMME | 8 | Kallang | 5 | 0.8per cent |
TREASURES@G6 | 14 | Geylang | 11 | 0.7per cent |
TREASURES @ G20 | 14 | Geylang | 6 | 0.7per cent |
VETRO | 12 | Kallang | 5 | 0.7per cent |
R MAISON | 13 | Serangoon | 7 | 0.6per cent |
WILKIE 80 | 9 | Rochor | 5 | 0.6per cent |
SUNNYVALE RESIDENCES | 15 | Bedok | 7 | -0.4per cent |
THE ASANA | 10 | Bukit Timah | 9 | -0.5per cent |
28 RC SUITES | 8 | Rochor | 6 | -0.6per cent |
The average annualised gain for the boutique condos above is around 3.57 per cent, which is in line with most private properties; but as you can see from One Robin (over 49 per cent annualised gain) and Casero @ Dunman (- 11.1 per cent loss), "average" may not mean much for this property segment.
One way to get a different picture is to look at boutique condos based on district:
District | Breakeven | Gain | Loss | Grand Total | Total Volume |
27 | 9.5per cent | 9.5per cent | 1 | ||
21 | 6.3per cent | 6.3per cent | 11 | ||
26 | 5.6per cent | 5.6per cent | 1 | ||
3 | 5.0per cent | 5.0per cent | 4 | ||
10 | 5.6per cent | -2.9per cent | 5.0per cent | 147 | |
15 | 0 | 4.6per cent | -2.6per cent | 4.2per cent | 401 |
16 | 4.4per cent | -0.6per cent | 4.1per cent | 22 | |
17 | 4.4per cent | -1.7per cent | 4.0per cent | 17 | |
4 | 3.8per cent | 3.8per cent | 3 | ||
19 | 0 | 4.1per cent | -1.1per cent | 3.5per cent | 111 |
11 | 3.9per cent | -3.9per cent | 3.5per cent | 85 | |
9 | 0 | 3.8per cent | -2.4per cent | 3.5per cent | 79 |
23 | 4.8per cent | -2.9per cent | 3.2per cent | 5 | |
12 | 3.8per cent | -1.7per cent | 3.1per cent | 81 | |
1 | 2.9per cent | 2.9per cent | 1 | ||
13 | 2.8per cent | -1.6per cent | 2.7per cent | 29 | |
5 | 2.9per cent | -1.3per cent | 2.6per cent | 28 | |
14 | 0 | 3.0per cent | -1.1per cent | 2.5per cent | 186 |
8 | 3.6per cent | -3.8per cent | 1.7per cent | 75 | |
7 | 1.6per cent | 1.6per cent | 1 | ||
20 | 0 | 1.9per cent | -2.1per cent | 1.5per cent | 13 |
28 | 1.7per cent | -0.4per cent | 1.5per cent | 10 | |
6 | -0.4per cent | -0.4per cent | 1 | ||
Grand Total | 0 | 4.1per cent | -2.2per cent | 3.6per cent | 1312 |
From the above, we can see that units 10 and 15 stand out for boutique projects:
With regard to District 15, this is probably due to the large number of boutique condos in the Katong/Joo Chiat area. This provides a much higher transaction volume, which may also explain the higher annualised returns here.
(The exception to this would be Vibes @ East Coast and Casero @ Dunman, where the respective losses of 26.9 per cent and 11.1 per cent came from holding periods of less than a year. It's fair to say, however, that the abnormally short holding periods make these outliers, with losses probably due to the sellers' unique circumstances).
This may also be due to the gentrification of the Joo Chiat stretch, which in previous decades had a reputation for being sleazy (it was once full of massage parlours and shady bars). The boutique condos already in this area would have seen a turnaround in value as the area was cleaned up.
The neighbouring District 14 (the Eunos to Paya Lebar stretch) also has a good amount of transaction volume, albeit a lower annualised return.
The properties in District 14 are likely to be older, and a bigger proportion may be rented out. Properties here are in a dense urban area, which some families dislike; but that also means they're well positioned to take advantage of the nearby Paya Lebar hub.
District 10 (River Valley, Tanglin, Holland V, and the other ritzy neighbourhoods) is simply ideal for this sort of project. While there are many high-end condos in the area, affluent buyers tend to prefer a degree of exclusivity and privacy, and that's something that boutique condos do well.
Here, we look at a scatterplot showing annualised returns versus square footage:
From this, we can make out that larger units tend to fare better for boutique condos; although this isn't something that is relegated to just boutique condos.
Size Category | Average Profit | Average per cent Profit | Average Annualised Returns (per cent) |
Less Than 500 sq ft | $80,619.02 | 12.81per cent | 2.44per cent |
Less Than 900 sq ft | $147,930.82 | 15.34per cent | 2.92per cent |
Less Than 1,400 sq ft | $272,479.32 | 20.69per cent | 3.91per cent |
More Than 1,400 sq ft | $489,416.63 | 21.84per cent | 4.27per cent |
Grand Total | $227,220.66 | 17.80per cent | 3.39per cent |
Do notice that, while the returns rise with unit size, the transaction volume of bigger units is much lower. This is just because huge units tend to be scarcer, and this may also be a factor contributing to better returns.
We also speculate that larger units tend to be bought by pure owner-occupiers more often (landlords seldom want something so big, as there's a cap on the maximum number of tenants, and the high quantum will diminish rental yields).
Owner-occupiers are also more likely than investors to pay above a unit's valuation: their family's comfort means more than resale gains to them. In addition, owner-occupiers tend to have a much longer holding period, and this can also account for their stronger gains.
Boutique condos aren't just physically smaller and less visible, they also have a smaller market presence. Boutique condos are notoriously tough to move during property launch, for instance, as they tend to be from smaller developers, with lower budgets (they're very reliant on agents' networks and word-of-mouth).
Trust issues also play a part here, as a boutique project is more likely to carry a developer name you don't recognise. The familiar big players like CapitaLand, GuocoLand, CDL, etc. are usually seen on full-size developments; so there's a bit more uncertainty among buyers.
ALSO READ: Here's why some new-launch condos sell better than others
This article was first published in Stackedhomes.