It's an old saying that one-bedders are better for rental, and bigger units are better for resale gains. Whether it's true or not, one fact remains: with high property costs and ABSD rates, most new property investors are going to start with the humble one-bedder.
The lower price quantum just makes it more accessible, and less of a risk.
So in light of that, here's a look at where to find one-bedder units that have shown the highest rental yields:
| Project | Size (Sqm) | Avg. Transacted Price | Sale Volume | Yearly Rent | Yield |
| # 1 SUITES | 50 to 60 | $715,250 | 4 | $40,440 | 5.65per cent |
| PEOPLE’S PARK COMPLEX | 30 to 40 | $545,000 | 1 | $30,480 | 5.59per cent |
| THE HILLFORD | 30 to 40 | $586,250 | 4 | $32,477 | 5.54per cent |
| GRANDVIEW SUITES | 40 to 50 | $630,000 | 1 | $34,800 | 5.52per cent |
| RESIDENCES 88 | 40 to 50 | $790,000 | 1 | $43,200 | 5.47per cent |
| PEOPLE’S PARK COMPLEX | 40 to 50 | $580,000 | 1 | $31,600 | 5.45per cent |
| PRESTIGE HEIGHTS | 30 to 40 | $639,000 | 3 | $34,800 | 5.45per cent |
| LE REGAL | 30 to 40 | $575,000 | 1 | $31,286 | 5.44per cent |
| LOFT @ RANGOON | 30 to 40 | $650,888 | 1 | $35,400 | 5.44per cent |
| ALTEZ | 50 to 60 | $1,080,000 | 1 | $57,320 | 5.31per cent |
| THE CLIFT | 70 to 80 | $1,220,000 | 1 | $63,931 | 5.24per cent |
| PAVILION SQUARE | 30 to 40 | $630,888 | 1 | $33,000 | 5.23per cent |
| SUITES @ EUNOS | 30 to 40 | $670,000 | 1 | $34,800 | 5.19per cent |
| CASA AERATA | 30 to 40 | $625,000 | 2 | $32,175 | 5.15per cent |
| WILKIE 80 | 30 to 40 | $736,200 | 1 | $37,600 | 5.11per cent |
| TREASURES@G6 | 40 to 50 | $668,629 | 3 | $34,114 | 5.10per cent |
| THE HILLFORD | 40 to 50 | $710,500 | 2 | $36,000 | 5.07per cent |
| SKYSUITES@ANSON | 30 to 40 | $885,000 | 3 | $44,460 | 5.02per cent |
| BURLINGTON SQUARE | 60 to 70 | $1,100,000 | 1 | $55,200 | 5.02per cent |
| JOOL SUITES | 30 to 40 | $715,000 | 1 | $35,850 | 5.01per cent |
| CENTRA STUDIOS | 30 to 40 | $646,500 | 2 | $32,400 | 5.01per cent |
| CENTRA SUITES | 30 to 40 | $660,000 | 1 | $33,000 | 5.00per cent |
The table includes the same project of different sizes recorded by URA for the calculation of rental yield. The yield is taken from the past six month’s rental and sale data.
We have narrowed down the one-bedders that have the highest yields but which are also not too niche. People's Park Complex, for example, is mainly geared toward foreign workers who are working in the shops below (or nearby F&B outlets in Chinatown), while #1 Suites is close to vice areas and may see financing issues.
The Hillford is a special case, being a 60-year lease development. So rather than these, we've focused on more conventional options with the highest yields:
Residence 88 is a freehold, 28-unit project located along Lorong Marican. The demand likely comes from good access to the Paya Lebar area: whilst Residences 88 is not in Paya Lebar itself, it's only one short bus ride to Eunos MRT (EWL), through services like 63.
From there, it's just one stop away from Paya Lebar Quarter (PLQ). For workers at PLQ, this could present a more affordable - and quiet - alternative to living in Paya Lebar itself, or the densely built-up parts of Geylang.
The Lorong Marican area is characterised by mainly lower-density landed housing. Coupled with the low unit count, Residence 88 appeals to tenants who desire privacy.
And while you do need a bus to get to the MRT (a factor common to most landed enclaves), there are nearby conveniences: you can walk to the Lengkong Tiga HDB enclave from here, where there's a coffee shop and an NTUC.
That said, this is a bit of a no-frills alternative. It's well-maintained and in a landed area, but you don't get any fancy facilities.
Prestige Heights is a freehold, 154-unit project located along the ever-popular Balestier Road stretch. This area is quite known for being a food stretch, and just outside this condo you'll find Boon Tong Kee, the Whampoa Food Centre, numerous zhi char outlets, etc. Some of these open till late, so even tenants who end their shifts at midnight can easily find a bite.
The main highlight of Prestige Heights is its proximity to Toa Payoh Hub. Services like 145 can get you from here to Toa Payoh Hub in around 10 minutes, where you'll also find Toa Payoh MRT (NSL). The hub area has retail, banking services, eateries, a supermarket, etc.
Alternatively, tenants have walking access to Zhongshan Mall, which also has a food court and an NTUC FairPrice, among other retail options. Also nearby is Shaw Plaza (Twin Heights), which has yet another NTUC and provides cinema.
The tradeoff for all this is the serious urban density and traffic of being near Balestier Road. There are tall buildings getting in the view in pretty much every direction — and for tenants who drive, it may be frustrating to deal with the near-constant traffic. As most drivers will know, Balestier Road can be very busy even well into the night.
Loft @ Rangoon is a freehold 24-unit project within Little India, and it does have basic facilities like a gym and pool. Demand for accommodation in Little India is quite high, especially for the area around Loft@ Rangoon. Besides being packed with shops and restaurants, it's within walking distance to Farrer Park MRT (NEL).
Do keep in mind that Farrer Park station is just two stops from Dhoby Ghaut (attached to Plaza Singapura) and three stops from Bugis; so the appeal is much more than just Little India itself. This location is highly accessible, and puts you minutes away from some of our biggest malls.
Tekka Market and Mustafa Centre are both within walking distance; and as most Singaporeans might know, you can buy just about anything at Mustafa Centre (the mall is also resuming 24-hour operations from Sept 6, 2024)
Ultimately though, whether a tenant likes Loft@Rangoon will boil down to whether they like the colour and business of being in Little India.
It's a highly convenient location and an interesting one to boot, but the noise and crowds — coupled with a near-total lack of green space — aren't going to be for everyone. And as for traffic, it can sometimes get so bad in Little India that it might be faster to use the train instead of driving/cabbing.
Altez is a leasehold, 280-unit apartment that's near the intersection of Tras Street and Enggor Street. This puts it within the heart of the CBD, and this alone can explain its high rental yield and rentability.
Altez is within walking distance of Tanjong Pagar MRT (EWL), but by 2026 this project will have access to two train lines. The Prince Edward Road station (CCL) should be up by then. But even now, residents at Altez don't have issues with accessibility. They're just one stop from Raffles Place and three stops from Bugis.
For yet a third MRT line (the TEL), it's possible to walk to Maxwell MRT — but this is a much further stretch than Tanjong Pagar or the upcoming Prince Edward.
There are a huge number of retail outlets and eateries in this area, stretching from 100 AM to Tanjong Pagar Plaza; and there are plenty of grocery options from NTUC to Don Don Donki. Living this close to the city centre, just about everything is within reach.
Altez is quite close to The Clift, below.
Clift is a leasehold, 312-unit project located close to Altez (see above). This project is at the intersection of Telok Ayer and Callum Street, just across the road from the famous Amoy Street Food Centre. This is neck-deep in Singapore's CBD, with office buildings all around; and there are three train lines accessible from here:
Tanjong Pagar MRT provides access to the EWL, while Telok Ayer station provides access to the DTL. Shenton Way MRT, also within walking distance, provides TEL access. As you might expect from being in the heart of the CBD, bus and train transport — as well as an abundant flow of cabs and PHVs — makes getting to and from here very easy.
Besides being across the road from Amoy Street Food Centre, residents can also walk from here to Lau Pa Sat in just a few minutes; Tanjong Pagar Centre, 100AM, and Far East Square (closer to Chinatown) all within walking distance.
This is one of the better-located condos for CBD-area foreign workers; so whilst even a 500+ sq ft unit here will cost over $1 million, both you and your tenants will get your money's worth.
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This article was first published in Stackedhomes.
