Singapore's top 5 rental-yielding properties

[Fleur]

In light of the recent round of measures that imposes a harsh Seller’s Stamp Duty for a lengthy period of time (16 percent, 12 percent, 8 percent and 4 percent for years 1, 2, 3 and 4 respectively), the focus of property investors will now have to shift from the short term to the long term, and from capital gains to rental yield.

With the help of the research team at PropertyGuru.com.sg, I have put together a list of the five projects in Singapore with the highest gross rental yields. Getting this list involved going through PropertyGuru’s entire database of listings. The methodology for the gross rental yield calculation was to take the average annualised asking rental per square foot for apartments in each project and divide that by the asking sale price per square foot. Note that we do not include any other ancillary costs such as maintenance fees, so the net rental yields will be lower. Only projects with listings both for sale and rental were included in this exercise, and room rentals were excluded.

5. In fifth place is Sims Green, a 99-year leasehold development located at Lorong 27A in Geylang. At an average asking price of $577 psf and rental of $2.59 psf/month, you get a gross rental yield of 5.4 percent. Completed in 2004 and situated near Aljunied MRT station, the 108 units here enjoy condo facilities such as a swimming pool, BBQ pits, gym and playground.

4. Next is Lilydale, yielding 5.6 percent with an average asking price of $564 psf and rental of $2.61 psf/month. A 99-year leasehold development located at Yishun Avenue 6, it is a few minutes’ drive to Yishun MRT Station and is also close to Seletar Country Club and Orchid Country Club. Completed in 2003, residents of the 318 units enjoy condo facilities such as a swimming pool, BBQ pits, gym, tennis court, multi-purpose hall, and playground.

3. In third place is Atrium Residences, a freehold development located at Lorong 28 in Geylang. Close to 10 minutes walk from Aljunied MRT station, this project has a gross yield of 5.6 percent with an average selling price of $674 psf and asking rental of $3.16 psf/month. It is a relatively new development (completed in 2009), comprises 142 units and has facilities such as a swimming pool, BBQ pits, gym, and clubhouse.

2. The second highest yielding project in PropertyGuru’s database is People’s Park Complex, which is yielding 5.7 percent with an average asking price of $812 psf and rental of $3.86 psf/month. It is an old 99-year leasehold development (completed in 1970) that is in a prime location just opposite Chinatown MRT Station.

1. And the highest yielding development is Wing Fong Mansions – at an asking price of $626 psf and monthly rental of $3.03 psf, it has a gross yield of 5.8 percent. A freehold development located at Lorong 14 in Geylang, it is minutes away from the upcoming Mountbatten MRT Station. Completed in 1997, it comprises 218 units and has facilities such as a swimming pool.

From my observation, the highest yielding projects tend to fall into the following categories: 1) Projects further away (e.g. Yishun) or unpopular (e.g. Geylang) areas that are located close to MRT stations and 2) Centrally located leasehold projects that are very old.

The key to getting a high yield is a low per square foot price (you can see that all the projects in the top 5 have a psf of less than $1,000) combined with good “rentability” (close to MRT, centrally located). If you’re focusing on rental yield (as opposed to just capital appreciation), prime projects in Orchard or Marina Bay are unlikely to be your ideal targets.

By Mr Propwise
Mr. Propwise is the founder of the Singapore property blog www.propwise.sg, which aims to help people make better real estate buying, selling,...

[ecimbew]

Lilydale in Yishun is not even near MRT nor centrally located. It is an executive condo which is closer to the upper Seletar dam. Next to the equally isolated and yet to be completed executive condo, Canopy. The only saving grace for these two projects is the upcoming Seletar Aerospace Park slated to boost employment opportunities in Maintenance, Repair, and Overhaul (MRO) of aircrafts. In another words, there is potential although it is considered "ulu" now.

[Geylang OKT]

...........
1. And the highest yielding development is Wing Fong Mansions – at an asking price of $626 psf and monthly rental of $3.03 psf, it has a gross yield of 5.8 percent. A freehold development located at Lorong 14 in Geylang, it is minutes away from the upcoming Mountbatten MRT Station. Completed in 1997, it comprises 218 units and has facilities such as a swimming pool.
,...

Very misleading. That is the only "facility" that Wing Fong Mansion has... a small and rather poorly maintained pool. Still the low low psf and high yielding rental is a fact

All the other newer geylang private apartments have carpark and lift facilities anyway

I agree with Fleur. For Geylang, the yields are very high, mainly because your 3 bedroom apartments can rental anything from $3200 to $3800. The location is near the city and close to amenities and transport (some would even say ideal proximity to the chicken houses).

You do the maths

[devilplate]

Very misleading. That is the only "facility" that Wing Fong Mansion has... a small and rather poorly maintained pool. Still the low low psf and high yielding rental is a fact

All the other newer geylang private apartments have carpark and lift facilities anyway

I agree with Fleur. For Geylang, the yields are very high, mainly because your 3 bedroom apartments can rental anything from $3200 to $3800. The location is near the city and close to amenities and transport (some would even say ideal proximity to the chicken houses).

You do the maths

innocent landlords sure kana bullied by geylang tenants....LOL

3bedder 3.2k....more like 2.8k+ if u wan to have family profile as ur tenant

nid to be like geylangOKT inorder to be the biggest landlord there

[Geylang OKT]

innocent landlords sure kana bullied by geylang tenants....LOL

3bedder 3.2k....more like 2.8k+ if u wan to have family profile as ur tenant

nid to be like geylangOKT inorder to be the biggest landlord there

Families want to stay in Geylang meh?

Still, good idea... maybe I should introduce milfs to my stable

[Wild Falcon]

Don't criticise these projects lah. The fact is that yield is so good means downside protection is there. Not only that, also offers good capital appreciation potential and definitely better than fixed deposits. Just like high-yielding stocks with stable prices.

[hopeful]

Don't criticise these projects lah. The fact is that yield is so good means downside protection is there. Not only that, also offers good capital appreciation potential and definitely better than fixed deposits. Just like high-yielding stocks with stable prices.

Geylang OKT, usually during recession, your business goes down or stay the same?
If Singapore recession, how many people can afford $150 shots?. Or is PRC callgirls not affected by recession at all?
If business not affected, might consider Geylan condos. Are banks willing to loan that much for eg 80% (before cooling measures) for Geylang properties?

[jwong71]

Geylang OKT, usually during recession, your business goes down or stay the same?
If Singapore recession, how many people can afford $150 shots?. Or is PRC callgirls not affected by recession at all?
If business not affected, might consider Geylan condos. Are banks willing to loan that much for eg 80% (before cooling measures) for Geylang properties?

banks are not keen to loan the area.. only 1,or 2 bank willing loan 50-60%. RHB shld be able to.

[Fleur]

banks are not keen to loan the area.. only 1,or 2 bank willing loan 50-60%. RHB shld be able to.

That is not true. I heard that all banks can loan to buyers of properties of Geylang odd lorongs and some even lorongs such as Lor 40 where Waterina is.

[hopeful]

banks are not keen to loan the area.. only 1,or 2 bank willing loan 50-60%. RHB shld be able to.

If like that, cash on cash returns are not fantastic then.

[Fleur]

If like that, cash on cash returns are not fantastic then.

LTV can be 80% for first property. Follow the same rules.

[jwong71]

That is not true. I heard that all banks can loan to buyers of properties of Geylang odd lorongs and some even lorongs such as Lor 40 where Waterina is.

Not to EVEN lorongs,between 2-26 or 30.. low loan

ODD lorongs able to secure loans.

[august]

HDB has the best yield ~

[devilplate]

big big headache to rent out geylang apts one la...if u r not geylang okt....better dun try.....so much trouble just for tat 5% rental yield?

i rather accept 3-4% yield somewhr else with better capital appreciation and less headache

[kane]

Good rental yes but what what's the probability of tenants defaulting on rental payment. You can one case every few months and you're screwed.

[Geylang OKT]

Geylang OKT, usually during recession, your business goes down or stay the same?
If Singapore recession, how many people can afford $150 shots?. Or is PRC callgirls not affected by recession at all?
If business not affected, might consider Geylan condos. Are banks willing to loan that much for eg 80% (before cooling measures) for Geylang properties?

You can get $50 bonks for my fishtank variety. Pardon if my associate OKTs are a rowdy and rough bunch. The mei meis are ok though

[Geylang OKT]

Good rental yes but what what's the probability of tenants defaulting on rental payment. You can one case every few months and you're screwed.

You got 1 - 2 months of their security deposit to fall back on. Kick up a fuss if payment is overdue by 2 to 3 days. Evict them after payment is overdue by 7 days. Everywhere (not just in Geylang) also the same... must be firm but fair

[Geylang OKT]

banks are not keen to loan the area.. only 1,or 2 bank willing loan 50-60%. RHB shld be able to.

For these banks, it is not the location but the profile of the buyer that eventually matters. Msian banks like RHB, finance banks, HSBC do lend to even numbered lorongs.

About 60% to 70% of the valuation price max. Once the quota is filled however, (i.e. $$$ amount of loans for the particular lorong hit the bank's limit), these banks will then stop lending to the even numbered lorongs.

[devilplate]

Once the quota is filled however, (i.e. $$$ amount of loans for the particular lorong hit the limit), these banks will then stop lending to the even numbered lorongs.

this is smthing new to me...

[Geylang OKT]

this is smthing new to me...

Yup, its true. But the given is that DBS, UOB and OCBC will not grant loans to even numbered lorongs below lorong 30

Those chicken livered scaredy cat pussies

[jwong71]

For these banks, it is not the location but the profile of the buyer that eventually matters. Msian banks like RHB, finance banks, HSBC do lend to even numbered lorongs.

About 60% to 70% of the valuation price max. Once the quota is filled however, (i.e. $$$ amount of loans for the particular lorong hit the bank's limit), these banks will then stop lending to the even numbered lorongs.

yup 60% max..
and the agent got the cheek to ask me if i got enuff for the 40%.. my reply, i can jolly buy 2units.

and since there is a loan issue on the 60% loan. forsee that my future buyer will face the same or even worst if i selling higher then my purchase price.

[Geylang OKT]

yup 60% max..
and the agent got the cheek to ask me if i got enuff for the 40%.. my reply, i can jolly buy 2units.

and since there is a loan issue on the 60% loan. forsee that my future buyer will face the same or even worst if i selling higher then my purchase price.

The geylang condo and pte apt owners hope by then that our girls and trade and related paraphernalia (kinky or otherwise) would have moved on to another location by the time they want to sell

If we are relocated (forcibly or otherwise), the geylang units prices would shoot thru the roof. But I am dreading that day (hopefully never)

In the meantime, these owners are happy to earn high yielding rentals. No lose situation for them.

[hopeful]

The geylang condo and pte apt owners hope by then that our girls and trade and related paraphernalia (kinky or otherwise) would have moved on to another location by the time they want to sell

If we are relocated (forcibly or otherwise), the geylang units prices would shoot thru the roof. But I am dreading that day (hopefully never)

In the meantime, these owners are happy to earn high yielding rentals. No lose situation for them.

if moved to another location, wont the new location price fall through the floor? maybe some SAF land can be converted. NS boys will be happy.

[Geylang OKT]

if moved to another location, wont the new location price fall through the floor? maybe some SAF land can be converted. NS boys will be happy.

Hmm... I suggest Changi, School of the commandos. Good for soldiers to release after a stressful day. Foreigners cumming to Singapore can also easily get a taste first hand of our irresistible and sensual hospitality before heading onwards to their hotels

[hopeful]

Hmm... I suggest Changi, School of the commandos. Good for soldiers to release after a stressful day. Foreigners cumming to Singapore can also easily get a taste first hand of our irresistible and sensual hospitality before heading onwards to their hotels

have to be practical. locate near sniper school, if there is one. They have to learn to shoot straight. one hit one kill.
but your suggestion of commandos also good. they can learn infiltration techniques, take a few covert videos and slip out, all without being detected.

[Regulators]

I am sure all banks will support those new launches in geylang

banks are not keen to loan the area.. only 1,or 2 bank willing loan 50-60%. RHB shld be able to.