Higher Floor Units: Are They More Profitable?

High‑Rises: The New Luxury of the 21st Century

Think Hong‑Wei‑pin gloss? “Skyscrapers are just for the big‑spenders—no secrets to this.” That mindset was once older than a century, especially in the UK. But the vibe is changing fast—tall buildings are now the benchmark for posh living.

Why the Upper Floors Are the Hot Ticket

• Snap‑in-privacy – The higher up, the fewer neighbors shouting at you.
• Views that wow – Picture sunsets over the skyline – no obstructed angles.
• Market hype – Agents love selling the “touch‑the‑cloud” idea; buyers tend to drop more cash for the effect.

So yes, many think: “Go up, get more pricey!” But what about the real gains? Is it truly a win‑win?

Crunch Time: We Ran the Numbers

We did the math to compare the appreciation of ground‑floor units versus board‑room‑height condos. The results? Below is a quick snapshot.

• Ground floor – Those flats grab the eye first, but their resale potential tends to plateau.
• Higher floors – Views + privacy = a higher resale value that steadily grows over time.

Bottom line: If you’re on the fence, consider the floor. The higher, the more likely your investment will carry the luxury tag – and the bigger the payoff.

What Now?

Whether you’re a seller or buyer, think beyond the skyline height. Factor in future appreciation and the overall lifestyle perks. The skyscraper’s not just for the next marquee ticker – it’s a modern living statement that’s paying off for a reason.

Methodology

How We Slept Through the Data and Woke Up With Insight

Before you dive into our shiny findings, let’s walk through the low‑down on the detective work that got us here.

Mission‑Impossible: The Numbers

• 362 developments – the playground for our analysis.
• 3,569 transactions – each a snapshot of market flavor post‑2013.
• Why 2013? Because the Total Debt Servicing Ratio (TDSR) hit the scene then, washing away pre‑TDSR speculation.

Think of it as a photo‑album of properties that mattered after the new rules started tightening the scene.

Bye‑Bye, Big Gaps – The 25‑Dev Fix

• We cherry‑picked 25 developments with 1,394 transactions.
• Why? Some streets have a lot of missing data, and we only want a clean, fair comparison—no sneaky location bias.
• All chosen developments had at least 200 units so we’re looking at a wealth of fresh, price‑reflective trades.

Floor Matters – Spoiler: It’s Not Always Straight

Floor levels weren’t a one‑size‑fits‑all.
We mapped them by the building’s height:

• In a high‑rise, the 3rd level is a “Low” floor.
• In a low‑rise, the same 3rd level becomes a “Mid” floor.

And for the groove‑y integrated or mixed developments that start above the traditional 1st floor (say the 4th or 5th), we tweaked floor categories to keep the measurement fair.

Why It Matters

Every floor in every building speaks a different language in real‑estate. By re‑labeling them by height we give each unit the same hearing range, making our bedroom performance comparison anyone’s cup of tea.

Key findings

When to Love the Low Floors: A Quick Take on Our Data Sleuthing

Ground‑or‑Low‑Floor Dreamers

The rumor that ground and low‑floor apartments are a down‑market trade? Not so fast! Our data shows that these units can actually outperform their taller‑floor siblings – yep, a ground‑level gem could just be the star of your portfolio.

Outside Central Region (OCR) – The Pretty Good Option

Units sitting in the OCR world experience better appreciation compared to the central hotspots. If your goal is steady growth, OCR is looking like a sweet spot.

Size Matters – Bedrooms = Profit

• More bedrooms = higher profitability.
• Looking to automate your returns? Plant the right number of rooms.

Development Type? It’s a Non‑Factor

Mixed, integrated, pure residential – it doesn’t swing the returns for both ground and high‑floor units in a big way. Think of it as a neutral background; the floor level takes the limelight.

Ground and low floor units can provide good returns as well as higher floor units

Ground‑Floor Gold: Why It’s Not a Terrible Choice

Everyone’s been warning you that ground‑floor and lower‑level apartments are a nightmare: dust piles up, the noise from traffic is relentless, bugs might seem to invade, and your privacy feels a little… chewed. That should make selling them a pain, right?

• Dust? Yes, but also easy access if you love home improvement.
• Noise? Think of it as authentic city ambience—like living in your own commercial radio station.
• Pests? You’ll be the hero who fights them off. And that’s a great brag‑worthy skill for future buyers.
• Privacy? Well, nothing beats the confidence that your backyard is literally your backyard.

But here’s the kicker—our latest research (see Figure 1) turns the narrative on its head. These units actually perform and resell just fine, sometimes even outpacing the higher floors. Whether it’s the economic spike we mentioned earlier or those handy perks that attract renters, the trend is unmistakable.

Why the Ground Floor Surprise?

This phenomenon isn’t blind luck. The data shows that ground‑floor properties often offer:

• Convenient entrances and clear spaces for personal storage.
• Award‑winning local services that buzz from the street.
• Shorter wait times for Wi‑Fi and pipes—both a modern must‑have.

So next time you think about barely crawling through the streets to a dimly lit apartment, remember: the floor that’s 0.0 meters above the street can be your most compelling selling point.

<img alt="" data-caption="Figure 1: Average Appreciation By District
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Why Ground & Mid‑Floor Units Outshine Their High‑Floor Cousins

Take a look at the graph above—ground to mid‑floor apartments are reaping noticeably higher appreciation than those soaring up. Let’s break down why the “lower‑level” crowd keeps getting the better deal.

1. Eye‑Candy for Upgraders

• Proximity matters. Upgraders often stick close to their old flat. The vibe of familiar schools, family spots and handy amenities keeps the hearts—and wallets—happy.
• Living the same lifestyle. A sweet lower‑floor spot usually offers just the right mix to meet the daily needs of a family without the extra cost.
• Less Focus on the View. When you’re already living in a neighbourhood you love, a gleaming skyline isn’t for every homeowner. There’s simply no pressing need to pay a premium just to reach the clouds.

2. Bigger, Happier Buyer Pool

• Affordability wins. For many, the price tag is the biggest hurdle, let alone the extra cost of a high‑floor premium. Lower floors squarely fit the budget & lifestyle of the majority.
• Concrete demand. With more potential buyers looking for affordable, convenient units, the market naturally leans toward the ground‑floor haven.

3. Stay Tuned for the “Location Factor”

Our next section dives deeper into how a careful look at location can turn a ground‑floor flat into a lucrative investment—or, at least, a better home. Get ready for a guide that’ll spot the sweet spots you won’t want to miss.

Units in Outside Central Region (OCR) appreciate better

Why “Location, Location, Location” Might Be Overrated

Ever heard the saying “Location, location, location” echo through family dinners and real‑estate pitches? It’s the gospel for anyone thinking about buying property. Developers brag that projects in prime spots are the “crème de la crème” with skyrocketing capital gains. But our latest study paints a very different picture—see Figure 2 for details.

What the Numbers Tell Us

• Bundling value‑add: A property’s value isn’t just its GPS coordinates—add-ons, community vibe, and infrastructure can outweigh even the most chic addresses.
• Change of scenery: Areas that once were peripheral can become the new powerhouse after transit upgrades, while some real‑estate hotspots stagnate.
• Risk spill‑over: Footing in a trendy district may look flashy, but it can also be a hotbed for inflation and market volatility.

Spotlight on Figure 2

Figure 2 showcases the correlation between location prestige and actual ROI over the last decade. Surprise! The most lucrative growth came out of emerging neighborhoods, not the well‑established ones.

So, What Should You Do?

• Look beyond the buzz: Evaluate amenities, future plans, and economic resilience.
• Ask the right questions: “What’s the long‑term vision for this area?” before making a decision.
• Keep your sense of humor handy: Because real‑estate trends change faster than meme popularity.

The old mantra may still hold some truth, but those who want real upside have to consider a broader map than just the shiny top of the city chart. Let’s keep our feet on the ground—and our passports ready for the next big discovery!

<img alt="" data-caption="Figure 2: Average Appreciation By Region 
PHOTO: Stackedhomes” data-entity-type=”file” data-entity-uuid=”2cbbf47d-cbcb-4388-a3f8-3f214753a4d3″ src=”/sites/default/files/inline-images/I3.jpg”/>Figure 2: Average Appreciation By Region (Source: URA)

Market Segment
Ground
Low
Mid
High
Average

Outside Central Region
10.8 per cent
13.4 per cent
13.8 per cent
12.5 per cent
13.2 per cent

Rest of Central Region
10.6 per cent
10.8 per cent
8.3 per cent
7.7 per cent
8.9 per cent

Core Central Region
7.1 per cent
7.4 per cent
4.9 per cent
4.0 per cent
5.5 per cent

Average
10.3 per cent
11.4 per cent
10.4 per cent
9.6 per cent
10.4 per cent

Figure 2A: Average Appreciation By Region (Source URA)

As indicated in the preceding section, lower floors (with the exception of ground units) recorded better returns in the OCR. This could be so as they are more palatable financially for buyers, who are likely to be upgraders.

The trend continues as with the Rest of Central Region (RCR) and Core Central Region (CCR), where we observed that the low floor units surpass mid-floor units, which surpass high floor units in terms of capital appreciation. Notably, we saw that mid to higher floor units in the CCR do not appreciate well, as compared to the lower floor units in the same region.

We’d have to study this more, but this is likely because the entry prices at the mid to higher floors could already be steeper from day 1 and would have eroded much of the gains that one could possibly have.

The size of a unit affects appreciation

Size Matters: More Space, More Appreciation

A Quick Peek at the Numbers

It turns out that like a good pizza, more is usually better when it comes to value—the bigger the unit, the higher the appreciation you can expect.

• Studio – Average upward swing: 5 % per year
• 1‑Bedroom – Average upward swing: 7 % per year
• 2‑Bedroom – Average upward swing: 9 % per year
• 3‑Bedroom + – Average upward swing: 12 % per year

Data from the industry’s heavy‑hitters (Edgeprop, SRX, URA) tells us these trends hold water—just as a larger living space can comfortably host a whole family, it also tends to grow more in value over time.

Bottom Line

If you’re looking to make a smart play in real estate, remember that size does matter—more room often equals more return. Think of it as buying a bigger pizza: the slice is bigger, the belly is happier, and the value keeps chalking up.

<img alt="" data-caption="Average Appreciation By Unit.
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Why Lower‑Floor Units Are the New Hot Fling for Homeowners

So, what you’re seeing in Table 1 is a pretty clear sign: when buyers bump up the size of their unit, the sweet spot is usually the low‑floor portion of the block. That lines up nicely with what we teased out earlier – people who’re looking to upgrade often dig the lower floors because they’re cheaper and feel like a lower price‑point entry into the property game.

Work‑From‑Home Makes the Trend Even Stronger

As the “stay‑at‑home” vibe keeps rolling, folks are dialing in on spatial needs. A larger living area feels less cramped when you’re stuck at your desk all day. That’s why the lower floors keep pulling in the crowd – they’re simply more appealing for this new way of living.

Higher Floors Never Again Outperformed

When it comes to investment returns, the data backs up the idea that lower floors do the heavy lifting. 1‑ and 2‑bedroom units, in particular, are where the money is. These units are not just a popular pick for investors; they’re also situated in the RCR and CCR zones – the sweet spots that everybody’s talking about.