Why Geylang’s Cheaper Condos Are Producing Some Of District 14’s Best Rental Yields

This week, our analysis of the rental market in Singapore moves to District 14, where we test whether the same driver of the best yields – namely the lowest purchase price – in other top-performing districts can be applied there.

Our analysis suggests that the properties with the lowest property prices in District 14, may not be the types of properties that appeal to most investors in this case.

When we look at the locations that encompass District 14, the planning area covers Geylang, Aljunied, Eunos and Paya Lebar. Parts of this area, like Geylang and its links to the red-light entertainment, is also where some undesirable locations can be found. These locational traits still shape what buyers are willing to pay for a private residential property there.

In general, the tenant pool in District 14 is unusually diverse. Tenant profiles range from professionals working in the Central Business District (CBD) as well as those working in regional business hubs like Paya Lebar and Changi. The area is also a convenient location for the employees in the various F&B, hospitality, and nightlife businesses that operate throughout this locale.

Based on the data that we’ve been able to compile, and across the 21 eligible projects that meet our criteria, we found that the median net yield after property tax is 4.11% for one-bedders, 3.31% for two-bedroom units, and 2.92% for three-bedroom units.

The yield on one-bedroom units in District 14 is the highest that we have recorded in this rental series to date. It comes up strong against other top performing districts like 3.61% in Districts 9 and 10, and 3.43% on the East Coast.