If you are on the hunt for rental yield, you may want to find a place which gives you the highest rental as well as with little competitions from other landlords. This article will help you find some good places along East-West Line.
In our analysis, we only look at 2 bedroom condos less than 10 years old located within 500m to EW line MRT stations. No. of listings are extracted from Propertyguru, you may want to note the real rental units available are normally just about half of the listing number, after net of duplicate and fake listings.
In General, 2 bedroom units normally can get you a monthly rental around $2500 to $3500 in most places. Condos asking less than $2500 per month are usually small apartment with unit sizes below 600sqf. You can find those in Tanah Merah, Kembangan, Paya Lebar and Aljunied.
High Rental Places
Naturally, CBD area commands the highest rental. Bugis, Cityhall, Raffles Place, Tanjong Pagar asking rents are from $2900 to $9500 at the moment. Rental above $5000 are normally for luxury integrated projects like Duo Residences and Wallich Residences with MRT, Offices and Shopping malls below. Unit sizes for these projects are above 1,000sqf for 2 bedrooms.
Outside CBD area, highest rental places are
- Lavender ($5500-$6200)
- Outram Park ($3900-$5000)
- Buona Vista ($4500-$5500)
You will notice that all of them are either at the edge of CBD area (Lavender & Outram Park) or close to major employment nodes (Buona Vista - One North). Also there is very limited supply around these stations. Each of them only has one condo project available, namely Kallang Riverside @ Lavender, Dorsett Residences @ Outram Park, The Rochester@Buona Vista.
Location with Low Supply
Outside CBD, there are 2 places with listing number exceeding 100 currently, Paya Lebar and Queenstown area. That should not cause an alarm because the temporary high supply is due to recent TOP projects there, Park Place Residences and Queens Peak respectively. The fresh supply should be absorbed by the market within 3 to 6 month time.
You can pay attention to the areas below, as supplies are running low at the moment.
- Pasir Ris to Simei ($2500-$3500)
- kembangan to Eunos ($2200-$2900)
- Kallang to Lavender ( $2650-$6200)
- Outram park to Tiong Bahru ($3200-$5000)
- Commonwealth to Chinese Garden ($2800-$5500)
We have identified 2 New Launches in high rental and low supply area, check out here: One Pearl Bank & One North Residences
If you're interested to find out good rental projects along other MRT lines, feel free to contact us.