Is Singapore’s Rental Market Really Softening? We Break Down The 2024 Numbers By Unit Size

Most landlords and agents agree that, with housing supply stabilising after Covid, the rental market is set to soften. But there are also contradictory opinions: some property agents have also pointed to 60 per cent ABSD rates as a sign that more foreigners will rent rather than buy; whilst some landlords feel that falling interest rates will result in higher yields. It’s a good time to get some clarity and sense of direction, so we dived into present-day rental numbers based on unit sizes:

Note: For the following, we are using rental and resale transactions that occurred for the whole of 2024. Gross rental yield is the annual rental income/total cost, and does not take into account other recurring costs like maintenance fees.

Present performance of 1-bedder condo units

Island-wide, the average gross rental yield of a 1-bedder condo is 4.1 per cent. The top three performers for 1-bedders are:

The Hillford cheats its way onto the list because of its unusually low price point relative to its location. This is a mixed-use project that’s near the Beauty World MRT station (DTL), although some might consider it quite a long walk. The price is very low due to its limited lease. The Hillford was intended as a retirement villa and was launched with a 60-year lease starting from 2013.

It didn’t take long for some buyers to realise that, even if The Hillford will likely see low to no resale gains due to fast lease expiry, the low quantum and good location make it a top choice as a rental asset. This does defeat its original purpose, but it shows how quickly the market adapts to novel propositions like this. 

Le Regal is another unusual case: despite the low price tag, it’s a mixed-use leasehold condo built in 2015, and is in the RCR (District 14, in the Geylang area). A city fringe location, coupled with walking distance to Aljunied MRT (EWL) and a low quantum, makes this a solid rental asset. Unfortunately, Le Regal is very close to the vice areas of Geylang; this could cause financing problems for some buyers, and it won’t even be considered by family buyers (or even some singles for own-stay use). 

Le Regal’s commercial element is also not a curated mix and is quite haphazard. This is yet another property that’s specialised as a rental asset, and isn’t very versatile. 

Parc Somme is a leasehold RCR project (District 8), and it’s within walking distance of Bendemeer MRT (DTL). Its location along Petain Road used to be considered seedy, but it has cleaned up a lot over the years (though there are still some shady massage parlours along the nearby Jalan Besar stretch). While there is a patch of greenery behind it, City Square Residences looms over it, while commercial shophouse elements are in front of it. This makes it a densely packed area close to the road, and one-bedders can be as small as 355 sq. ft. So while it’s great for rental, it’s not versatile enough for owner-occupancy. 

Note that Le Regal and Parc Somme are squeezed into very small land parcels, with only 88 and 30 units respectively. 

The top 1-bedders owe their performance to their specialised nature. All three are very niche and focused: they compromise on views, spaciousness, greenery, etc., in exchange for good accessibility, at the lowest prices possible. This drives up rental yield, but at the cost of resale prospects, and most would consider them uncomfortable for long-term, own-stay use.

Worst performing 1-bedders

Note that, among some older condos, it’s possible for units with high square footage (1,100 to 1,200 sq. ft. even) to be designated as one-bedders.

The Centrepoint, despite being an older leasehold property (completed in 1983), is in Orchard and is just a short walk from Somerset MRT (NSL). That’s why even a 1-bedder here can still fetch a quantum of over $2.1 million: it’s in the heart of the Orchard shopping belt. 

Unfortunately, the high quantum also means a weaker rental yield, and Orchard is chock-full of newer alternatives for tenants to pick from. The Centrepoint has high rentability – it’s never going to be hard to find a tenant – but there are more efficient ways to generate the same amount of rental income.

General rental yields of 1-bedders in different parts of Singapore:

Present performance of 2-bedder condo units

The average gross rental yield of 2-bedders is 3.3 per cent. These are the top three performers:

As unique as the name Qube Suites would seem, there’s another project in Bangkok with the same name that’s a service apartment, so be careful when looking it up for details. Qube Suites locally is a very small (21-unit) boutique condo in District 14. While it’s not near any MRT station, it has the distinctive quality of being very quiet and private: this project is surrounded by landed properties, and the Bedok Reservoir enclave is a bit further down (you can find the usual heartland amenities like coffee shops, minimarts, etc.) 

The drawback is the lack of access to an MRT station, but this is common to most landed enclaves. The low price point for a two-bedder is the main reason for the solid yield, but we do think rentability is more limited. This will have niche appeal, catering to tenants who drive and value privacy over convenience.

Central Imperial has broadly similar issues to Le Regal (see above). While it’s both cheap and freehold, it’s located close to Lorong 14 in Geylang. There are vice activities in this area, which can cause financing issues as well as limited resale prospects. These are the very factors contributing to the lower quantum, but due to the sheer convenience of the Geylang area (PLQ is nearby, there are numerous minimarts and 24-hour eateries, etc.), there is good rentability. 

Textile Centre is a mixed-use project in an advanced state of lease decay. Its 99-year lease began in 1970, and this is why the units here are so cheap. From word on the ground, most of the owners here are hanging on in the hopes of an en-bloc, now that even Golden Mile nearby has been redeveloped into Aurea (Golden Mile is within walking distance of here). As a side benefit to its age, though, Textile Centre units tend to be quite big; this is typical of first-generation condos. 

Textile Centre’s location is very convenient: you can walk to Lavender MRT station (EWL) from here, and some might argue this part of District 7 is close to – if not within – the CCR. The commercial element, however, is of little real amenity, barring a few eateries; and there are maintenance issues throughout the building. We don’t think a big overhaul is going to happen, if the owners are just hoping for a collective sale. 

Worst performing 2-bedders

We don’t have much to say here, as the low rental yield is very much explained by the resale prices! When you reach a quantum of $2.85 million to $5.1 million, a gross yield of two per cent or below is mostly a foregone conclusion.

All three of the bottom performers are freehold and in the CCR. So, besides the lower yield, you’re reliant on affluent foreigners (probably with big housing allowances) to keep these investments viable. We’d be less confident of this in 2025, with the shaky economy.

General rental yields of 2-bedders:

General rental yields of 3-bedders in different parts of Singapore:

The average gross rental yield of 3-bedders, across Singapore, is three per cent. Note that this is very close to two-bedders, which is something for landlords to consider when picking size. 

These are the top three best performers:

We’ve mentioned Textile Centre above already; its low price, relative to its location, benefits its 3 and 2-bedders alike. 

The Woodgrove has an unusually low average price. It’s tough to find a 3-bedder for under $1 million in 2025. Woodgrove is a leasehold condo in Woodlands (District 25), built in 1999. Based on the age, lease decay accounts for part of the lower price. The other factor would be its distance from public transport. Nonetheless, the numbers work out: an average of $3,860 per month is affordable for many family tenants,  and yet also enough to translate to a high yield for Woodgrove: a nice win-win outcome.

Sims Green, like Le Regal and Central Imperial, is within the Geylang Lorongs (in this case, Lorong 27A). For those who know the famous No Signboard Seafood at Geylang, this project is very close to it. Whether this is far enough from the vice areas is a bit subjective; but it is within walking distance to Aljunied MRT (EWL). This is also just one stop from Paya Lebar Quarter (PLQ), so projects like this one can present a cheaper rental alternative to Paya Lebar area workers. 

Like the other Geylang properties we’ve mentioned though, this is not going to appeal to families. Also, note there’s a clan association building next to this condo, and the road nearby can get congested. 

Worst performing 3-bedders

The high price at Gallop Green more or less precludes the possibility of a much higher yield. This is a freehold project in the famous Woollerton Park, and most people who buy an $8.58 million unit use it as an own-stay indulgence, rather than a rental asset.

The same goes for Flame Tree Park, where the high quantum keeps rental yields low. 

Bentley Residences @ Kovan, however, is interesting: a quantum of $1.6 million is low for a three-bedder, by 2024/2025 standards. It’s also near Kovan MRT station (NEL), so this could be a viable prospect. However, the drawback may come from it being a boutique development with a small land area. 

Speculatively, this may show that tenants don’t much like the bare-bones facilities common to boutique projects. Rental rates for nearby bigger projects, such as Kovan Melody and Kovan Residences, have a higher rental rate for 3-bedders.

Average 3-bedder performance by region:

General observations

The north region has persistently high rental rates across all bedroom types. Some realtors opined that this is due to price issues, with areas like Woodlands having historically lower prices (although this is changing over time). For now, though, it seems like it may be a good place for new landlords to take a look. 

There’s also a clear contrast seen here between the types of properties chosen by landlords and the types chosen by owner-investors or owner-occupiers. A lot of the highest rental yields come from very old units, or units that, whilst sometimes highly accessible, have limited appeal for families. 

These qualities may be counter-intuitive: few buyers, for instance, will see age as a potential benefit to push up yields. 

We’re going to complement this with future case studies of some properties, which haven’t yet been covered here. For example, Parc Rosewood and Skies Miltonia have notably lower average resale prices, as compared to other projects in the region. But even though their rental rates are lower (because they’re further from the MRT station), they still generate an impressive rental yield because of their entry price

Among the 2-bedders, some of the projects generating higher yields are ECs; such as Bellewoods and The Criterion. There are also two other developments that saw higher rental yields, like Nine Residences and The Wisteria. Both happen to be mixed developments that are further from the MRT station, but still under a 15-minute walk.