Where to find high rental-yield condos from 5.3% (in actual condos and not apartments)

When looking for high rental yields, a common issue that crops up is finding apartments — that is, developments like People's Park Complex, or walk-up apartments, that are not actual condos.

These tend to rise to the top due to their lower quantum; so to make things easy, we went out and found high-rental yield projects that are full-featured condos. Here are some to look out for:

*The list below was collected based on rental data from the past six months. It has been reported that rental rates have been dropping, due to an increasing supply of homes so these rental yields may not be sustainable in the months moving forward.

Top rental yields among full-suite condos

1. NEWest

This small (136-unit) Clementi-area condo is known for its low price point: transactions average $1,029 psf. 

Over the past year, buyers have been eyeing this development due to the bigger-than-average units. E.g. the last transaction in January 2024 was for a 2,401 sq ft unit (these are townhouses), at just $2.48 million (around $1,033 psf). Meanwhile, smaller units — such as a 635 sq ft unit that transacted in April 2023 — were priced at just $990,000. You'd be hard-pressed to find an equal-sized unit at those prices in 2024.

It's even more remarkable when you consider that the 956-year lease makes NEWest effectively a freehold condo. Landlords usually avoid this as freehold status adds a premium, while not doing much to raise rental income; but in this case, the price is so low that it's just a clear bonus.

On a separate note, some people may feel despite the size on paper, that it feels cramped — due to how the units are all placed together in one row.

That being said, NEWest's high rental yield is due to the lower cost of the property, and not its location. There's no MRT station within walking distance, although bus 154 outside the condo will go straight to Clementi MRT (EWL, CRL). This is also where Clementi Mall is located, which is one of the largest heartland malls.

In the immediate surroundings, NEWest is sparse on amenities; but you could take a long-ish walk along West Coast Drive, to get to the Ayer Rajah Food Centre. There's also an NTUC in this area, as well as the usual minimarts and heartland stores. 

Some tenants may not mind needing a bus connection to Clementi MRT, in light of the much higher rent closer to Clementi Mall. Also, because Clementi is so close to Jurong East and Dover (where Singapore Polytechnic is located), it can still strike some tenants as being quite convenient.

2. Jool Suites

This is a boutique, freehold condo located in Farrer Park. Those aren't qualities we normally associate with high rental yields, but the price point makes it possible. 

Averaging $1,460 psf, Jool Suites also has very small units that are clearly aimed at short-term rentals. The one-bedders are as small as 387 to 409 sq ft, and as of 2023, many transacted at $725,000 or lower; cheaper than the price of some 5-room flats. 

Rentability is also good, as the project is within walking distance of Farrer Park MRT (NEL), and it's possible to walk to Mustafa Centre or City Square Mall. A short walk to nearby Rangoon Road also gets you to a large number of eateries, some of which are open till late. 

Due to the small unit sizes though, and the extremely crowded environment, this project won't appeal much to family tenants. It's better for tenants who are singles or roommates/couples, who want an affordable and yet fairly central location. 

3. The Verve

The Verve is a small freehold condo (106 units) with an occasion that's… well, odd. On the one hand, being in Toa Payoh puts it in a fairly central, city fringe location. On the other, its exact positioning is a bit awkward; there is, for instance, no MRT station within walking distance (although the closest MRT station is Toa Payoh, which is just three stops from Orchard.

Amenities are good though, as you'd expect from a city fringe location. Zhongshan Mall is just a short walk away; and if you take the bus to Toa Payoh MRT, then Toa Payoh Hub (HDB hub) has almost anything you need. The Verve is also close to CHIJ Primary and Secondary; it's not really walkable, but it is within one kilometre. 

Besides appealing to landlords, the Verve might appeal to the occasional family as well. Units of up to 1,300+ sq ft transact for as low as $1.45 million, which makes this an affordable way to get into an RCR property. 

4. Parc Imperial

Parc Imperial is another small project that has a high yield, because of small, low-quantum units. Most of the units here range from 398 to 420 sq ft, which keeps the tenant range to mostly singles. Due to the small sizes, units can transact for as low as $745,000. 

In terms of amenities, there's frankly not much in the surroundings. But Haw Par Villa MRT (CCL) is within walking distance; we would expect that residents use nearby Buona Vista (three stops away), with The Star Vista Mall and Holland Village, to cover most of their needs.

The trade-off is that Parc Imperial is nestled within a low-density landed enclave, so it will draw tenants who dislike the urban density in other parts of Singapore.

Some buyers may be a bit worried about resale prospects though, as this condo is something of an oddity — home buyers who like landed areas are typically families rather than singles, and they likely don't have much use for a shoebox unit. So this project is mainly for investors who are chasing yields over resale gains.

5. Suites @ Paya Lebar

Despite the name, we think of Suites @ Paya Lebar as being more in Serangoon than Paya Lebar. That's because one of the big appeals here is that, with bus services like 43 nearby, you can get to Serangoon NEX in just a few stops. The Serangoon MRT station is attached to this megamall and is in fact closer to Suites than Paya Lebar MRT.

Suites @ Paya Lebar is also something of a no-frills choice. The facade is far from fancy, and the project is pushed up rather close to Upper Paya Lebar Road (although thankfully, traffic noise is manageable at most hours of the day). Some buyers may also dislike the large place of worship just across the road. Finally, the immediate amenities are limited, but being able to take a bus to NEX makes up for that. 

Also, do note that services like 70A can take you to Paya Lebar Quarter (PLQ) very quickly as well; and given that PLQ is a major commercial hub, landlords can reasonably expect to tap some of the demand from there. 

While units here tend to be small (they can range from 317 to 420 sq ft), there are some larger 1,389 sq ft units as well; and we note that one of these transacted for just $1.65 million in January 2024. 

So while we still think this is more of a rental asset than an own-stay condo, those who must live near Serangoon or Paya Lebar for whatever reason could consider this (provided you can secure one of the larger units of course). 

ALSO READ: Lumina Grand EC review: A more luxurious EC near ACS Primary in Bukit Batok

This article was first published in Stackedhomes.