Does Buying a Lower PSF Guarantee a Higher Profit?
When shopping for a property, many buyers assume that purchasing at a lower price per square foot (psf) automatically means locking in bigger profits. On the surface, this seems logical — buy cheaper, sell higher. But in reality, psf alone doesn’t guarantee better returns. Let’s break it down with real case studies.
1. Within the Same Development: Higher Floor vs Lower Floor
A common scenario is comparing units within the same project. Higher floors are usually priced at a premium — better views, more privacy, and sometimes better wind flow. Lower floors, by contrast, tend to be “cheaper psf.” But does cheaper really mean more profitable?
Case Study: Clavon (TOP 2024, 640 units)
#32-05 was bought at $1,615 psf (a $117 psf premium compared to #02-05).
Yet upon resale, it sold at $2,110 psf, which was $253 psf higher than the low-floor unit.
Profit difference: $783K vs $567K — that’s $216K more profit for the higher-floor unit.
Case Study: Stirling Residences (TOP 2022, 1,204 units)
#22-08 entered at $1,748 psf, about $51 psf higher than #15-08.
But upon resale, it fetched $2,638 psf versus $2,471 psf.
Profit difference: $1.198M vs $1.042M — a $156K edge for the higher-floor unit.
👉 In both cases, the higher floors not only held their premium but expanded the profit margin further.
Key Insight: Lower psf doesn’t always win. Profitability is more about how the unit is positioned within the developer’s pricing strategy at launch, rather than just chasing the cheapest entry.
2. Between Developments: Cheaper PSF vs More Expensive PSF
Another assumption buyers make is that projects with a cheaper psf will always yield better profits. Let’s test this theory.
Case Study: The Tre Ver vs Woodleigh Residences
In Jan 2019, The Tre Ver launched with an average psf of $1,606, while Woodleigh Residences was much higher at $1,981.
By Sep 2025, Tre Ver’s average psf grew to $2,021 (+25.8%), but Woodleigh’s surged to $2,766 (+39.6%).
Despite Tre Ver starting cheaper, Woodleigh Residences delivered a stronger appreciation in both psf and overall profitability.
Key Insight: Buyers are willing to pay more for convenience and connectivity. Woodleigh’s integrated MRT, mall, and lifestyle amenities justified its higher launch price and ensured stronger resale demand.
Final Conclusion
There’s no single “secret sauce” to property profits. Could a lower psf result in a higher profit? Absolutely — and many developments have proven that over time. But the reverse can also be true, as we’ve seen in both same-development and cross-development comparisons.
What really determines profitability is not just the psf number on paper, but a mix of factors:
Developer’s Pricing Strategy — how entry prices are set during launch and the premium attached to specific stacks or floors.
Demand Drivers — MRT accessibility, schools, integrated amenities, and lifestyle value that buyers are willing to pay for.
Timing — both at entry and at exit, aligning with market sentiment and buying power.
👉 In the end, it’s not about chasing the cheapest psf, but understanding the bigger picture of demand and value. That’s where the real profit potential lies.