Property with High Rental Yield in Singapore

Posted 2025-06-18 05:58:57

Why Rental Yield Matters

In a high-demand, land-scarce country like Singapore, real estate is a top investment vehicle. However, not all properties offer the same return on investment. Rental yield—the annual rental income divided by the property price—is a key metric that savvy investors use to assess profitability. If you’re looking to maximize returns, you need to focus on properties with high rental yield in Singapore.

What Is a High Rental Yield?

In Singapore, rental yields typically range between 2% to 4%. Anything above 4% is considered high. While luxury condos and landed homes may have high capital appreciation, their rental yield is often lower. On the other hand, strategically located smaller units or Executive Condominiums (ECs) can offer higher rental returns.

Factors That Drive High Rental Yield in Singapore

Several key factors influence rental yield:

Proximity to MRT Stations: Tenants value convenience. Properties near MRT lines (especially the Downtown, East-West, and North-East lines) are always in demand.
Near Business Hubs: Locations near CBD, One-North, Changi Business Park, or the Jurong Innovation District attract working professionals.
University Catchments: Properties near NUS, NTU, and SMU can fetch high yields from student rentals.
Supply vs Demand: High-demand, low-supply areas tend to have stronger rental markets.
Smaller Unit Sizes: One-bedroom and studio apartments often yield better returns per square foot.

Top Locations with High Rental Yield in Singapore

1. Geylang

Despite its notorious reputation, Geylang consistently delivers rental yields above 4%. The area is close to the CBD, well-connected by MRT, and has affordable entry prices.

2. Jurong East / Lakeside

With the Jurong Lake District set to be Singapore’s second CBD, this area is booming. It’s home to large malls, the upcoming Jurong Region Line (JRL), and proximity to international schools.

3. Woodlands

Thanks to the Woodlands Regional Centre and the Thomson-East Coast MRT Line, rental demand has picked up. It also appeals to Malaysians working in Singapore due to its proximity to the Causeway.

4. Punggol / Sengkang

These newer estates are attractive to young professionals and couples. Properties here are modern and close to lifestyle amenities, often offering rental yields of 3.5%–4.5%.

5. Pasir Ris (Jalan Loyang Besar Area)

This is where Boulevard Coast EC is located. ECs offer lower entry prices with strong rental potential, especially being close to Pasir Ris MRT and the upcoming Cross Island Line

Why Consider Executive Condominiums (ECs)?

ECs are a hybrid between public and private housing. Here’s why they’re great for rental yield:

Lower Purchase Price: Typically 20–30% cheaper than private condos.
Private Status after 10 Years: Opens them up to a larger resale and rental market.
High Demand from Young Families & Expats: Especially in areas like Pasir Ris and Punggol.

Boulevard Coast EC, for example, offers modern facilities, beachside living, and proximity to Changi Business Park—all indicators of strong rental demand.

How to Calculate Rental Yield

Use this simple formula:

Rental Yield = (Annual Rent / Property Price) x 100

Example:

Property Price: S$1,000,000
Monthly Rent: S$3,800
Annual Rent: S$45,600
Yield: (45,600 / 1,000,000) x 100 = 4.56%

Look for yields above 4% for good cash flow potential.

Common Mistakes to Avoid

Ignoring Maintenance Costs: Older properties may yield high rent but come with repair costs.
Underestimating Vacancy Periods: Always factor in potential downtime between tenants.
Overpaying for “Hot” Areas: High capital cost can dilute rental returns.

Tips to Boost Rental Yield

Furnish the Unit: Fully furnished units command higher rents, especially for expats.
Upgrade Fixtures: Smart home tech, modern lighting, and kitchen upgrades appeal to tenants.
Target a Niche Market: Consider students, digital nomads, or corporate tenants.
Choose ECs Like Boulevard Coast EC: Ideal mix of affordability, growth potential, and rental demand.

Conclusion: Where Returns Meet Opportunity

If you’re hunting for property with high rental yield in Singapore, don’t just chase capital gains—look at actual returns. Focus on strategic locations, compact units, and upcoming infrastructure projects. Executive Condominiums like Boulevard Coast EC strike the perfect balance between affordability and profitability.

Whether you’re a new investor or expanding your portfolio, now is the time to make smart, yield-driven decisions.

Important Link

Tampines Street 95 EC

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Tampines Street 95 EC Project Details

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Tampines Street 95 EC Site Plan

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