Are rents higher near international schools?
By Elizabeth Choong
/ EdgeProp Singapore |
Coco Palms is located within a 1km radius of Overseas Family School. (Photo: CDL)
It is often assumed that a nearby international school will add to the rental appeal of a residential property and, hence, give a boost to monthly rent and demand from tenants.
In this article, we will examine the rent and number of rental transactions for condominiums near international schools to determine if this assumption holds true.
Methodology
The international schools featured in this article have been selected because they have a large student population and are well-established in Singapore. Care has been taken to select schools that are geographically dispersed so that each school has different condominiums within a 2km radius.
The residential properties examined in this article include only condominiums that have obtained temporary occupation permit (TOP), as it will not be possible for uncompleted condominiums to be rented out. Additionally, only condominiums that have had at least 10 rental transactions in the last 12 months are included to avoid any particular transaction skewing the average rent for the development. Condominiums that have been sold via en bloc are also excluded.
Singapore American School
The Singapore American School (SAS) is located along Woodlands Street 41. According to the school’s website, there are currently over 4,000 enrolled students representing 65 nationalities, ranging from preschool to Grade 12.
SAS is easily accessible via the Seletar Expressway and the Bukit Timah Expressway. Marsiling MRT Station is approximately 800m away.
There are three condominiums (657 units) within a 1km radius of SAS and four condominiums (1,804 units) that are between 1km and 2km away from the school.
The condominiums within a 1km radius have average monthly rents ranging from $2.6 psf to $4.0 psf and account for 180 rental transactions in the last 12 months. The Woodgrove and Woodhaven tie for first place with the highest rent of $4.0 psf per month. However, Woodhaven accounts for 68.9% of the rental transactions over the last 12 months.
Among the condominiums that are between 1km to 2km away from SAS, Parc Rosewood has the highest monthly rent ($4.7 psf) as well as the most rental transactions (203). It is notable that a condominium further from the school is fetching a higher average rent and has more rental transactions than the developments nearer to the school.
The popularity of Parc Rosewood could be due to its easy access to the Seletar Expressway. It is also a large development with many facilities. Moreover, the condominium lies just outside the 1km radius, so it would seem that Parc Rosewood offers tenants a good balance between proximity to SAS and other amenities.
Woodhaven and Parc Rosewood have the highest rent and the most number of rental transactions compared to other condominiums in their respective groups. Both developments are also located in district 25.
The current average monthly rents for both developments trend above the overall average monthly rent for condominiums in district 25 ($4.10 psf). However, the current average monthly rent for Parc Rosewood ($5.24 psf) is higher than Woodhaven ($4.34 psf) despite having obtained TOP a year later.
Overseas Family School
The Overseas Family School (OFS) is located along Pasir Ris Heights. According to the school’s website, they have approximately 3,000 students representing over 70 countries from pre-kindergarten to Grade 12.
The nearest MRT station is the inactive Elias MRT Station on the Cross Island Line. Pasir Ris MRT Station is the nearest operational station, but it is more than 1km away. The school is also located opposite Elias Mall.
There are eight condominiums (4,413 units) located within a 1km radius of OFS and four condominiums (1,901 units) located 1km to 2km away.
The eight developments located within a 1km radius fetch average monthly rents ranging from $2.5 psf to $4.8 psf, with Coco Palms commanding the highest rent. Coco Palms also has the most number of rental transactions (257), representing 30.9% of the 833 transactions for the eight condominiums in the last 12 months.
Among the four condominiums located 1km to 2km away from OFS, the average monthly rents range from $2.7 psf to $5.6 psf, based on a total of 465 rental transactions over the last 12 months. D’Nest attracted 51.2% of the transactions and has the second highest rent of $4.6 psf per month.
Casa Al Mare commands the highest monthly rent ($5.6 psf), probably because it is the newest development, having obtained TOP in 2021. However, the high rent is based on only 11 rental transactions in the last 12 months.
Together, Coco Palms and D’Nest account for 38.1% of the rental transactions for condominiums within a 2km radius of OFS. Both developments are located along Pasir Ris Grove in district 18 and have about 900 units each. Coco Palms obtained TOP in 2018; a year after D’Nest.
The current average monthly rents for both condominiums are consistently above the overall average monthly rent for condominiums in district 18 ($4.20 psf). However, rent for Coco Palms trends marginally higher than D’Nest. This year, average monthly rent for Coco Palms is $5.28 psf; $0.22 psf higher than D’Nest ($5.06 psf).
Lycee Francais de Singapour (International French School)
The Lycee Francais de Singapour, or International French School (IFS), is located along Ang Mo Kio Avenue 3. According to the school's website, IFS has about 2,820 students representing 79 nationalities, ranging in age from two to 18 years old (kindergarten to high school).
The nearest MRT station is Tavistock MRT Station on the Cross Island Line, but it is currently inactive. The nearest operational MRT station is Ang Mo Kio MRT Station, which is almost 2km away. IFS is located within walking distance of Serangoon Gardens Country Club, Chomp Food Centre, and Serangoon Garden Market.
There are only two completed condominiums (923 units) and the uncompleted Affinity at Serangoon within a 1km radius of the school. There are 15 completed condominiums (2,602 units) that are between 1km to 2km away.
Of the two completed developments that are in closest proximity to IFS, The Garden Residences has the higher average rent of $5.9 psf per month and account for 68.8% of the rental transactions.
Kensington Park Condominium commands a significantly lower rent of $2.5 psf per month despite being nearer to IFS because it obtained TOP 36 years ago. Moreover, recent en bloc sale attempts for Kensington Park Condominium could have dampened rental demand because tenants would avoid such developments so that they do not have to move if the en bloc sale is successful.
Of the 15 condominiums located between 1km to 2km away from IFS, Cardiff Residence has the highest average monthly rent of $5.5 psf but The Greenwich accounts for the most transactions (19.2%). The popularity of The Greenwich could be attributed to the condominium being part of a mixed development with Greenwich V as the retail component.
The Garden Residences and Cardiff Residence are located in district 19 and have the highest rent among their peers in the same proximity group. They are also among the newer developments near IFS.
The average rents for both condominiums consistently trend above the overall average rent for condominiums in district 19. However, The Garden Residences tend to fetch a higher rent than Cardiff Residence. This year, the average monthly rent for The Garden Residences is $6.02 psf, which is higher than Cardiff Residence's rent of $5.75 psf and the district 19's average rent of $4.39 psf.
Canadian International School
The Lakeside Campus of the Canadian International School (CIS) is located along Jurong West Street 41. The school has another campus in Tanjong Katong that will close in June, and the students will transfer to the Lakeside Campus. According to the school's website, CIS has about 3,000 students from over 70 nations, ranging from two to 18 years old (nursery to Grade 12).
The school is located next to Jurong Lake, opposite Jurong East Sports Hall and Stadium, and near Yuhua Market and Hawker Centre. Although Chinese Garden MRT Station is the nearest station, it is not within walking distance.
There are five condominiums (3,437 units) located within a 1km radius of CIS and seven condominiums (4,125 units) that are between 1km and 2km away.
J Gateway has the highest average rent ($6.5 psf per month) and the most rental transactions (404) among condominiums within a 2km radius of CIS. The average rent and number of transactions for J Gateway are even higher than those of the developments nearer to CIS. The popularity of J Gateway is likely due to the development being a short walk to Jurong East MRT, JEM, and Westgate.
Despite having fewer nearby amenities, Lake Grande still managed to attract an average monthly rent of $5.6 psf and 322 rental transactions. As such, Lake Grande has the highest rent and most transactions among condominiums within a 1km radius of CIS.
Lake Grande and Lakeville are the only condominiums located within a 500m radius of CIS. Unsurprisingly, Lakeville fetches the second-highest average rent of $5.1 psf per month and the third-highest number of transactions (230). The Lakefront Residences beat Lakeville by a whisker with 252 transactions and also have the third-highest average rent ($4.7 psf per month) among condominiums within a 1km radius of the school.
Lake Grande and Lakeville have the highest average rent and most transactions within their group. Both developments are also located in district 22 and have approximately 700 units each. J Gateway obtained its TOP in 2016, three years before Lake Grande.
The average rent for J Gateway is consistently higher than that of Lake Grande, but the average rents for both developments are consistently above the overall average rent for condominiums in district 22. In 2023, the average rent for J Gateway is $7.04 psf per month, much higher than Lake Grande ($6.25 psf) and district 22 ($4.12 psf).
In summary
Our examination of rents and rental transactions of condominiums near international schools located all over the island indicates that there is a correlation between proximity to an international school and the rental appeal of a condominium. Condominiums within a 2km radius of an international school attract a higher average rent compared to condominiums in the same district.
However, other factors such as proximity to conveniences like a major mall seem to have a stronger impact on rental appeal. Mixed developments such as The Greenwich or condominiums near malls and MRT stations, such as J Gateway, appear to be more attractive to tenants.
The age of a development is also a factor. Tenants seem to favour newer developments because the facilities and units in newer developments have less wear and tear.
As such, investors who want to ensure maximum rental appeal of their condominium unit should look at developments that are within a 2km radius of an international school. The development should also be within walking distance of a major mall or is part of a mixed development. Investors should also bear in mind that newer developments would have an edge over their older neighbours.
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