2 BHK vs 3 BHK: Which Apartment Size Is Right for You?

Evan Willoughby

Trying to pick between a 2 BHK and a 3 BHK can feel like a juggling act between budget, family needs, and future plans. One side promises lower costs, the other more room to grow. This guide walks you through the real factors that matter, so you can decide without second‑guessing yourself.

What Does BHK Actually Mean?

In most Commonwealth markets, BHK stands for Bedroom, Hall and Kitchen. A 2 BHK has two bedrooms, one hall, and a kitchen; a 3 BHK adds a third bedroom. The label doesn’t dictate exact size, but developers usually stick to typical ranges that reflect local market norms.

Typical Floor Area and Layout

Below is a quick snapshot of how developers size these units in Auckland’s mid‑range market:

The Floor area difference isn’t just a number; it translates into how you can arrange furniture, host guests, or set up a home office.

Cost Considerations: Purchase Price, Rent, and Ongoing Expenses

Money talks, so let’s break down the numbers.

1. Purchase price: In Auckland suburbs like Mount Eden, a 2 BHK typically ranges NZ$750,000‑NZ$950,000, while a 3 BHK can cost NZ$950,000‑NZ$1.3 million.
2. Rental yield: Rental yield on a 2 BHK averages 4.2 % annually, whereas a 3 BHK hovers around 3.8 % because the higher price offsets extra rent.
3. Maintenance & council rates: Expect roughly NZ$3,000‑NZ$4,500 per year for a 2 BHK and NZ$4,500‑NZ$6,000 for a 3 BHK, driven mainly by larger roof area and extra bathroom fixtures.
4. Mortgage impact: Using a typical 30‑year loan at 5.4 % interest, the monthly principal‑and‑interest payment for a NZ$800,000 loan (2 BHK) is about NZ$4,500, versus NZ$5,400 for a NZ$1.1 million loan (3 BHK).

When you stack these figures, the 2 BHK saves you roughly NZ$8,000‑NZ$12,000 per year in direct costs, plus a bit more flexibility if you need to downsize later.

Family Size and Lifestyle Fit

Think about who lives under the same roof.

• Couples or small families: A 2 BHK comfortably fits two adults and one child. The second bedroom can double as a nursery or office.
• Growing families: If you anticipate a second child, occasional guests, or need a dedicated home‑office, the 3 BHK’s extra bedroom pays dividends in privacy.
• Extended family or multigenerational living: A 3 BHK provides the space needed for parents or in‑laws without turning the living room into a bedroom.

The Family size metric isn’t just a headcount; it determines how you use shared spaces, store belongings, and keep daily routines smooth.

Resale Value and Investment Outlook

Both units appreciate, but market dynamics can tip the scales.

• Demand: 2 BHKs attract first‑time buyers and investors seeking steady rental income, keeping demand high even in slower markets.
• Appreciation: Historically, 3 BHKs have shown a slightly higher capital gain-around 6‑7 % over five years-because they cater to families willing to pay a premium for space.
• Liquidity: 2 BHKs usually sell faster because the pool of potential buyers is larger.

The Resale value of a 3 BHK may be higher in absolute terms, but the rate of return can be comparable when you factor in the extra capital tied up.

Location, Location, Location

Size matters less if you’re in the wrong suburb. Proximity to schools, public transport, and job hubs can swing the decision.

• In high‑density zones (e.g., City Centre), 2 BHKs dominate because land is scarce and prices are steep.
• In family‑friendly suburbs (e.g., Pakuranga, Howick), developers often prioritize 3 BHKs to meet the demand for larger homes.

Thus, match the BHK type to the Location you prefer, not the other way around.

Decision Checklist: Which BHK Wins for You?

Use this quick cheat sheet before you sign any contract.

• Budget ceiling (including deposit, mortgage, and moving costs)
• Current family size and near‑future plans (children, aging parents)
• Desired rental yield if you plan to lease the unit
• Time horizon for holding the property (short‑term flip vs. long‑term stay)
• Preferred suburb’s typical unit mix

If you tick more boxes for cost‑savings, flexibility, and faster resale, the 2 BHK is likely the better bet. If you prioritize space for a growing household and are okay with a larger upfront outlay, the 3 BHK makes more sense.

Key Takeaways

• 2 BHKs cost about NZ$200‑300 k less to buy and rent, saving ~NZ$10 k annually on total ownership costs.
• 3 BHKs offer 400‑800 sq ft more space, better for families of 4+ or home‑office needs.
• Resale value grows slightly faster for 3 BHKs, but liquidity is higher for 2 BHKs.
• Location dictates which BHK type is abundant; match your lifestyle to the suburb’s typical supply.
• Run a simple cost‑vs‑space matrix using your budget, family plans, and investment horizon.