Rental Yields in Singapore’s Prime Districts

Singapore’s rental market has largely been healthy, supported by a continuous flow of expatriates, foreign professionals and students. The city holds an appeal for those in search of a safe city to live in good public transportation, a robust healthcare system and top-notch education. Foreigners are especially attracted to the commonwealth’s transparent property laws, stable economy and the availability of leasing high-quality residential properties. In this blog, let’s explore Singapore's prime districts, like Orchard, Bukit Timah and Novena and understand the prominent reasons for being popular among domestic and foreign tenants.

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1. What is Rental Yield and Why is it important for Property Investors

Rental yield is the value you would get if you leased out your property investment. It is determined by dividing the rent by the property purchase price or the property market value. In simple terms, rental yield is your yearly rent percentage value of the property. It can help home buyers in making informed decisions about whether to buy a house for rental purposes by comparing it with other investments; in choosing the city or location for buying a home by comparing rental properties; and in determining realistic rents for their houses.

2. Gross Yield v/s Net Yield

Gross Yield is a simple calculation that gives you an overview of the income your property generates about its purchase price. Calculated as: Gross Yield (%) = (Annual Rental Income ÷ Property Price) × 100 Net Yield is a more accurate reflection of your property’s profitability because it takes into account all the expenses involved in maintaining and letting the property. These might include repairs, insurance and agent fees where the property is empty. Calculated as: Net Yield (%) = (Annual Rental Income – Annual Costs) ÷ Property Price × 100 In high-end markets like Singapore, where property prices are substantial, understanding rental yields helps investors assess the viability of their investments.

3. Overview of Singapore’s Prime Districts and its Top Performing Projects

Singapore’s upscale residential neighbourhoods, primarily Districts 9, 10 and 11, are an epitome of high-end living and increased property value. These districts aren’t just centrally positioned but also comprise some of the most desirable addresses within the city-state, rendering them highly in demand among both tenants and investors.

District 9 – Orchard, River Valley

The Orchard and River Valley of District 9 is the hub of affluent living in Singapore, renowned for cosmopolitan shopping, dining and entertainment. River Valley provides high-end residential living in a more subdued atmosphere, but still within easy reach of the city’s throbbing energy, making the district a hit with expatriates and discerning locals. The Ritz-Carlton Residences in District 9 proudly represent the first freehold property under the brand’s Asian portfolio. Ideally located in the prestigious Cairnhill area, this highly sought-after development offers unparalleled luxury, world-class condominium amenities and an exceptional living experience.

District 10 – Tanglin, Holland, Bukit Timah

With embassies, international schools and greenery aplenty, District 10 is perfect for families and professionals alike. Tanglin and Holland are sought after because of their lifestyle appeal, whereas Bukit Timah is so close to prestigious schools and nature reserves. Leedon Green is a luxury residential condominium in Singapore’s coveted Holland Village of District 10, developed by industry leaders Yanlord Land Group and MCL Land. Designed for families, it offers a blend of convenience, smart living and access to top educational institutions. With premium amenities and a warm community vibe, Leedon Green redefines modern, heartwarming living in a prime location.

District 11 – Newton, Novena

District 11 is a blending of residential delight with commercial comfort. Newton lies near the CBD and Orchard and Novena is an up-and-coming medical and shopping hub, attractive to tenants that desire accessibility as well as comfort in the urban area. Watten House, a new luxury condominium by UOL Group and Singapore Land Group, is set in the prestigious District 11 along Shelford Road. With heritage-inspired design and modern smart home features, the 180-unit mid-rise offers refined living with premium amenities. Ideally located near Tan Kah Kee MRT and top schools like Raffles Girls’ Primary, it also enjoys easy access to lifestyle hubs such as Dempsey Hill, Orchard Road and Holland Village, making it a standout choice for families and urban dwellers alike.

Prime-Adjacent- Districts 1 and 2 – Tanjong Pagar and Marina Bay While not historically residential, these central business districts are increasingly speckled with high-end condos. With integrated developments and proximity to the best workplaces, Districts 1 and 2 are gaining rental popularity among professionals and investors.

4. Current Rental Yield Trends (2024–2025)

As of late 2024, Singapore’s average gross rental yield stood at approximately 3.40%, a slight increase from 3.22% in Q2 2024. (Ref article: https://www.globalpropertyguide.com/asia/singapore/rental-yields ) In the Core Central Region (CCR), which encompasses the prime districts, rental yields have experienced some fluctuations:

District 9: Approximately 3.0%
District 10: Around 2.7%
District 11: Close to 2.9%

(Ref data: https://sg-propertydata.df.r.appspot.com/district%20map ) These figures indicate a modest yield compared to other regions, reflecting the premium nature of properties in these districts. Factors influencing these trends include:

Expatriate Demand: A steady influx of expatriates seeking luxury accommodations.
Supply Constraints: Limited new developments in prime areas maintain demand.
Economic Factors: Global economic conditions affecting rental budgets.

5. Comparison Table: Rental Yields in Prime Districts

District	Area	Avg. Price (psf)	Avg. Monthly Rent	Avg. Gross Rental Yield
D9	Orchard/River Valley	S$2321	S$7,925	3.98%
D10	Tanglin/Holland/Bukit Timah	S$2297	S$8,437.5	3.85%
D11	Novena/Newton	S$2009	S$6,425	4.25%

(Ref link for Avg. gross rental yield: https://buycondo.sg/gross-rental-yields-in-sg-to-buy-vs-to-rent-2024/#OrchardRiver_Valley) (Ref link for Avg. price (psf): https://sg-propertydata.df.r.appspot.com/district%20map)

6. Buyer Profile & Tenant Demand

Investor Profiles

Foreign Investors are mainly attracted to Districts 9, 10 and 11 because they are considered as safe havens for capital preservation in Singapore due to the country’s political stability and well-defined legal framework. High-Net-Worth Individuals (HNWIs) consider investing in prime real estate as a means of wealth diversification that delivers status and secure rental returns. While Family Offices prefer long-term holding in freehold or long leasehold assets, they treat prime condos as legacy assets with inherent lifestyle value.

Tenant Demographics

Expatriates & Corporate Leases: Finance, tech and biomed are drawn to proximity to the CBD, ease of commute and turnkey living. Diplomats & International School Families: Embassy staff & global nomads who want to be conveniently based near the finest in international schools & diplomatic zones in Tanglin & Orchard. Medical Tourists & Hospital Personnel: The development of Health City in Novena has created a demand from visiting patients for short-term accommodations and from medical workers on shift there. Singapore Luxury Homes’ prime-district portfolio aligns closely with these investor and tenant profiles, ensuring high occupancy and minimal downtime between tenancies.

7. Factors That Influence Yields in Prime Areas

Government Cooling Measures: Measures such as the ABSD and TDSR can contribute to a transient reduction in transaction volumes, which will indirectly impact rentals. Leasehold vs. Freehold: Freehold projects tend to be able to priced at a premium, and thus may have a contracted gross yield profile; while 99-year leasehold projects may have higher initial entry yields. Vacancy Rates: Even in prime districts, overhang from new launches can lead to short-term oversupply, placing downward pressure on rents. Unit Size & Layout: Smaller one-bedroom or studio units typically achieve higher rental per square foot, whereas larger three- to four-bedroom units suit families but may yield a lower percentage return.

8. Investment Tips for Maximizing Rental Yield

Select High-Demand Projects: Prioritize developments with direct MRT access, reputable schools nearby, and integrated retail or medical components. Optimize Unit Size: Consider investing in one- or two-bedroom layouts for faster lease-up and higher per-sqft rents. Leverage Resale vs. New Launch: Unlike new launches, resale units yield rental as soon as you take ownership and since new launches are likely done by developers, they could come with additional incentives. Review Lease Lengths: You may wish to negotiate longer lease terms with corporate tenants to maintain regular cash flow and reduce turnover costs. Stay Informed on Regulations: Review URA announcements and government housing regulations regularly to stay informed about the market shifts and cooling-measure adjustments.

9. Secure your slice of Singapore’s Luxury Rental Market with Singapore Luxury Homes

Own a piece of Singapore’s prime districts with Singapore Luxury Homes, for consistent rental income and long-term capital appreciation. Returns in these prime locations might be more modest than those in fringe areas, but their stability and cachet are invaluable in a diversified real estate portfolio. With Sunita and Kaizar by your side, you’ll have trusted experts to guide you through the luxury rental property landscape in Singapore, ensuring every investment decision is strategic, informed and tailored to your goals. List Your Property with Singapore Luxury Homes or get personalized investment advice today and let our experts guide you to optimum yield and enduring value.

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