5 Best Condos For Rental In Singapore: Why New Investors May Want To Watch Out

There are certain projects in Singapore that consistently rank in the top five to ten for gross rental yield. From time to time, inquiries arise regarding these projects, asking why they are so special and why they never seem to move from the top of the list. Our short answer? They’re cutting corners (we explain how below). Our long answer? It’s a case of higher risk and higher reward, and these projects are not something new investors should get involved in. Let’s take a closer look:

1. People’s Park Complex

People’s Park Complex is a leasehold property in the heart of Chinatown, which was built way back in 1972. Its long-forgotten claim to fame is that, way back in the 1970s, this was the biggest shopping complex in Singapore (Yes, for real. It’s verified on Infopedia!) People’s Park Complex has 291 residential units, and the lease date starts from 1968.

People’s Park Complex often appears on the list for top rental yields. As of January 2025 (at the time of writing), it has slipped slightly and now sits at an implied yield of 4.5 per cent; however, this is still above the expected norm of around two to three per cent. It has also been claimed that People’s Park Complex offers a solid net rental yield for landlords: some estate agents have informed us that the monthly maintenance fee can be as low as approximately $100+ per month, although this does not include parking. (the parking lot is privately owned.)

The high rental yield is due to the very low prices of the units here. For example, a transaction on 24th October for a 1,119 sq.ft. unit was priced at just $1.2 million (around $1,072 psf). More recently, in December 2024, a one-bedroom unit (409 sq.ft.) sold for only $700,000, or approximately $1,711 psf. It’s important to note that People’s Park Complex is located directly across from Chinatown MRT station (DTL, NEL). Prices like these are almost impossible to find elsewhere in the CBD.

Despite the age and maintenance issues, People’s Park Complex continues to have a steady flow of tenants: either from those working in the shops below or from individuals on limited budgets who need to stay within the CBD. This combination leads to an unusually high gross rental yield and strong demand for rentals.

So why isn’t this People’s Park Complex good for beginners?

Lease decay is the most alarming factor here, as there are only 42 years left on the lease. We would expect financing limitations from the bank, as the property is more than halfway through its lease already. This could mean that, even if the unit is cheap, you’ll potentially face a bigger cash outlay due to the lack of a loan.

On top of that, repeated attempts have been made for an en-bloc sale. The last thing you might want is for an en-bloc to happen right after you’ve bought and renovated a unit. And even if you’re for that en-bloc, its historical value threatens to interfere with the collective sale, making for a rather short and uncertain future.

The maintenance is also an ongoing issue. This is the only condo we know of that has lift breakdowns so bad, they’re documented in a Wikipedia entry. The entry mentions lift malfunctions five times in a month, and we don’t know if the situation has improved since then.

The project is also claimed to attract vice-activity workers, which makes any resale effort challenging.

If you buy here and it ends up being a mistake, it can be very hard to find someone else to offload this property on. We’d also note that there are no facilities here (no pool, gym, etc.), so it lacks the ability to attract higher-paying tenants.

2. The Hillford

Here’s a spoiler as to why it’s on this list: The Hillford is a 60-year lease condo that was built in 2016.

It has 281 units, and was originally intended as a retirement resort. We don’t know how well that plan worked, as 20+ year-olds were seen in the show flat; and we will say we know owners who are definitely younger than 50 in this project.

Once it was launched, several buyers overlooked the word “retirement.” All they saw was a project located within 750 metres of Beauty World Plaza and MRT station (DTL), offering a super-affordable way to live in Bukit Timah (launch prices were around $1,100+ psf).

The Hillford has an implied rental yield of 5.95 per cent. However, we consider this somewhat misleading, given the low price tag. (Rental yield = annual rental income/total property cost x 100). This is further compounded by the fact that the units are smaller, resulting in a lower overall cost. For instance, some units here are as small as 398 sq. ft.

In September 2024, one of these 398 sq. ft. units was sold for just $598,000. More recently, a 657 sq. ft. unit transacted for $930,000, or approximately $1,416 psf. Prices like these are hard to match anywhere in Bukit Timah, let alone in a condominium so close to Beauty World Plaza.

So why isn’t The Hillford good for beginners?

Once again, it’s on a 60-year lease, and the lease began in 2013. Due to the decay, it’s possible that you might run into financing issues; that would mean a bigger cash outlay despite the lower prices. Subsequent buyers may also be put off by the limited lease. There’s a high chance that once you buy into this, the only route open to you is to hold on and collect rent until the very end. You need to be certain you’re okay with such a scenario.

3. Le Regal

Le Regal is a freehold project with just 88 units, built in 2015. It is a mixed-use development, featuring an assortment of shops downstairs, mostly mobile phone dealers, salons, foot reflexology parlours, and the like.

Le Regal is located in Geylang, within walking distance of Aljunied MRT station (EWL). It’s certainly a convenient location, as the surrounding lorongs are brimming with food options and minimarts. This part of Geylang is also a favourite among foodies, with popular spots such as No Signboard Seafood, JB Ah Meng, and Mongkok Dim Sum. The area also appeals to tenants who work odd hours, as many of the eateries and shops remain open 24/7 or until the early morning.

This part of Geylang attracts many foreign workers. It can also appeal to tenants who need easy access to Paya Lebar Quarter (PLQ), which is just one train stop away or a short bicycle ride. Tenants seeking a taste of the grittier, more urban side of Singapore, or something less predictable than the usual expatriate enclaves, may also find this area appealing.

In October 2024, a 420 sq. ft. unit here transacted for just $615,000, while in April of the same year, a 366 sq. ft. unit transacted for just $575,000. Note the small unit sizes, which show this project was fully intended as a rental asset. This has resulted in a rental yield of around 5.8 per cent.

So why isn’t Le Regal good for beginners?

Le Regal is within walking distance of Geylang’s Red Light district. Depending on the bank in question, you may face difficulties securing financing (although a good mortgage broker may be able to assist with this). Some banks will refuse to provide loans for properties in such vice areas, meaning you may be forced to use a bank or non-banking institution that offers a higher interest rate.

Le Regal is not suitable for family tenants, given the nature of the location. It primarily appeals to a fairly niche group of tenants. Traffic around the Geylang lorongs is notoriously bad, with road safety and noise pollution being ongoing issues. There is also a lack of green spaces in the area, and some may find the rows of old walk-ups, noisy roads, and shophouses to be oppressive.

Not to mention, most people would consider this area to be one of the least aesthetically pleasing parts of Singapore.

Similarly, resale prospects are limited, and the low unit count contributes to price volatility.

4. The Sorrento

The Sorrento is a freehold, 131-unit project that was completed in 2015. This project was at a notably competitive price point when it launched in 2014, likely due to the developer being cautious. 2013 was the previous property peak, which saw a slew of cooling measures including the Total Debt Servicing Ratio (TDSR.)

The price point at launch started from as low as $1,380 psf, whereas the low average from nearby counterparts was at about $1,600 psf. This allowed the developer to sell out three-quarters of the project at launch, despite the rocky timing.

As with the others on this list, the lower price point resulted in better gross rental yields, which is at around 5.2 per cent. The resale prices have also been quite affordable. Most recently, a 613 sq. ft. unit was transacted for just $918,000 in August of 2024, while earlier in May a 1,432 sq. ft. unit sold for $1.888 million.

The Sorrento is a good draw for students or foreign staff at NUS, as it’s one of the few condos close to the campus. Other tenants are likely to come from the One-North area (e.g., Science Park, Fusionopolis, and Biopolis).

This is one of the more versatile projects on this list, as The Sorrento can also serve as a family condo. Access to West Coast Park and its campsites/trails provide a lot of greenery and open space. Once the Pasir Panjang Terminal moves to Tuas Mega-port (sometime in 2040,) Sorrento’s waterfront will also be much more appealing.

So why isn’t The Sorrento good for beginners?

We’ll start by saying that this is the least problematic property on this list. It’s quite new, the price point means a lower capital commitment, and it can be converted into a family dwelling if necessary. That said, the main issue here is one of accessibility, along with competition from One-North itself.

The Sorrento lacks walking access to an MRT station. Tenants here would ideally need to drive, or be comfortable using taxis regularly. Nearby amenities (aside from the park space) are limited; there are some eateries, convenience stores, and one Sheng Siong in the general area. However, anything beyond that would likely require a trip out. In light of this, some tenants may prefer rentals in One-North itself, such as One-North Eden or One-North Residences.

It could work, but a new investor might find it easier with a condominium in a more accessible location. Alternatively, you’ll need to ensure you have a good agent who is familiar with the West Coast area and can secure those tenants.

5. Textile Centre

Textile Centre is a leasehold property built in 1977 (the lease commenced in 1970), with 132 units. It is a mixed-use development, although the commercial component is admittedly not much to speak of. We’re also informed that there is a place of worship within the project, which may or may not be an issue for some residents.

Textile Centre is one of the most affordable places to stay in District 7, and the price tags are likely to raise some eyebrows. Despite being within walking distance of two MRT lines (Lavender on the EWL and Nicoll Highway on the CCL), an 883 sq. ft. unit here was sold for just $1.1 million in October 2024. The low price point, combined with its proximity to Bugis and two train lines, makes it a strong contender for rental opportunities. The rental yield is at around 4.8 per cent.

The commercial component isn’t particularly useful (some scattered retail, a place of worship, and a few shuttered offices and massage parlours), but the eateries downstairs could be convenient. Additionally, we’d consider the proximity to Bugis and Arab Street as mitigating factors, as there are plenty of amenities in the area.

So why isn’t the Textile Centre good for beginners?

As with People’s Park Complex and The Hillford, the main issue here is lease decay. There could be complications with financing, and the extreme age (55 years old) leaves limited room for future resale. Once you buy this property, you may be stuck with it until the lease expires.

Another concern is the abundance of rental properties in District 7. Frankly, newer developments like The M, Midtown Bay, and Midtown Modern all appear much more impressive in comparison. These projects offer better resale value and better rentability, as they also feature full condominium facilities (Textile Centre has no pool, gym, or similar amenities).

An experienced landlord with a niche strategy, focused primarily on rental yield, could still make a great asset out of Textile Centre. However, its age and the surrounding competition make it a very tough choice for a new investor.