Landlords with properties in Districts 9 and 10 are well positioned to command some of the highest residential rents in Singapore, but relatively high property prices there also means that they earn some of the lowest yields on the island.

Generally speaking, when we talk about prime District 9, this usually covers areas like Orchard Road, River Valley, and Robertson Quay. Meanwhile, prime District 10 is commonly associated with Tanglin, Bukit Timah, and Holland Road. Both districts have affluent neighbourhoods and expat enclaves.

In recent years, amid rising rents and prices in these prime residential neighbourhoods, some tenants have started to explore some city-fringe areas (such as the Rest of Central Region) for more affordable options. While this has siphoned off some rental demand in District 9 and 10, these two areas still attract most of the rental demand from expats and high net-worth tenants.

Across the 67 eligible projects in the these two districts, we found that monthly $psf rent falls steadily as the home sizes get bigger; from a median of $7.49 psf for one-bedroom units, to $6.29 psf for two-bedders, and finally $5.03 psf for three-bedroom units.

However, the purchase price does not decrease at the same rate. In this article, we look at why compact units were the only segment to gain ground over the decade, and why the priciest projects tend to sit at the bottom of the list.

We’re also applying the same eligibility rule which we have been using throughout this series: at least 10 registered rental contracts, five resale transactions, and a Temporary Occupation Permit (TOP) of at least 24 months, all within the last 12 months.