Singapore’s high-yield rental properties have these 3 things in common

By EdgeProp Singapore / EdgeProp | March 11, 2018 9:00 AM SGT
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Before you proceed to snap up the first condo you come across, know that your investment is infinitely better made when you’ve done diligent research. Because when all is said and done, the rental real estate field still requires investors to have a good understanding of what does – and what doesn’t – make for a money-making rental property.
So what makes a good rental property investment? For answers, we looked at apartments and condominiums across Singapore that commanded gross rental yields of 4% and above, to identify their common characteristics.
Current gross rental yields are calculated by taking the annual rental income of the development and dividing it by recent resale prices of the corresponding project. To ensure consistency, we only considered rental and sales transactions involving one-and-two bedroom units, and projects with at least five sales and five rental transactions of such units from January 2017 to January 2018.
Private residential properties with rental yields of 4% and above from Jan 2017 – Jan 2018
Note: The list of properties differ slightly from those in our previous articles owing to changes in analysis parameters.
Common characteristics of high-yield Singapore properties
Singapore’s rental market remains in the doldrums, despite signs of a property market recovery from last year. Overall gross rental yields for non-landed private homes from January 2017 to January 2018 are hovering just around 3.2% - the lowest in a decade.
What are some characteristics that set these high-yield rental properties apart from the rest? From the list above, we have observed the following factors:
1) Proximity to the city centre
“Location, location, location,” – surely you’ve heard this phrase often enough to know of its importance. And indeed, it is pretty much the number one rule in real estate, since a home’s value pretty much depends on where it’s at.
It’s also a clear key criterion for real estate rentals, as you can see from our...