When contemplating an investment in a condo, it is crucial to also evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary greatly, depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to offer more favorable rental yields. It is beneficial to conduct extensive market research and seek guidance from real estate agents to gain valuable insight into the rental potential of a specific condo.
In February, there was a continued surge in new private home sales, with developers reporting strong figures, driven by new launches. According to data released by URA on March 17, developers sold 1,575 units (excluding executive condos) last month – a 45.4% increase from January’s 1,083 units. This figure was also over 10 times higher than the 153 units sold in February 2024. It is the highest number of new homes sold in February in the last 13 years, with the last highest figure of 2,417 units recorded in February 2012, notes Tricia Song, CBRE’s head of research for Singapore and Southeast Asia. Including ECs, there were a total of 1,604 units sold last month, with a 45.3% increase from January. So far this year, developers have sold 2,658 units (excluding ECs), surpassing last year’s figure of a similar number of units in eight months, as observed by Leonard Tay, head of Knight Frank Singapore’s research department. There were two major new launches in the Outside Central Region (OCR) that led to the strong performance in February: the 1,193-unit ParkTown Residence in Tampines North and the 501-unit Elta on Clementi Avenue 1. In February, ParkTown Residence recorded 1,041 units sold at a median price of $2,363 per square foot (psf), making it the top-selling project for the month. This translates to an 87% take-up rate in the integrated project, jointly developed by UOL Group and CapitaLand Development. Elta, with 326 units sold at a median price of $2,538 psf, was the second-best performing project by developers MCL Land and CSC Land Group. According to CBRE’s Song, both ParkTown Residence and Elta are situated in suburban neighborhoods that have not seen any new developments in the past five years. This has contributed to their strong performances. Along with these two projects, developers launched a total of 1,694 units for sale in February, which is an 89% increase from the previous month’s 896 units. Furthermore, new home sales in the OCR accounted for a significant 92% of the total units sold in February, recording the best monthly performance in the past nine years (since 1,523 units were sold in July 2015), according to Wong Siew Ying, head of research and content at PropNex Realty. The Rest of Central Region (RCR) contributed 98 units, or 6.2% of the units sold in February. The top-selling RCR project was Pinetree Hill, with 22 units sold at a median price of $2,613 psf. In the Core Central Region (CCR), 25 units were sold, accounting for 1.6% of the total units sold in February. The best-selling CCR project was 19 Nassim, with five units sold at a median price of $3,372 psf. Additionally, four units were sold at One Bernam, with a median price of $2,651 psf. The 351-unit One Bernam, which was launched for sale in May 2021, is now fully sold. Several transactions involving foreign buyers were recorded in February, with Singapore citizens making up the majority of new private home buyers (92.4%), followed by permanent residents (6.9%), and foreigners (11). These include the two most expensive transactions for the month at 32 Gilstead, each selling for $14.47 million and $14.61 million. In February, a total of 603 new private homes (including ECs) were sold in the OCR, with prices of at least $2 million, as noted by Christine Sun, chief research and strategist at OrangeTee Group. This is the highest number of new suburban homes sold at this price range in a single month since URA data became available in 1995. The previous record was set in November 2024, with 512 new homes in the OCR sold for at least $2 million. Of these 603 homes, 596 were non-landed homes, including units from ParkTown Residence (397 units), Elta (145 units), and Hillock Green (16 units). PropNex’s Wong notes that the average unit prices of new launches have “decoupled” from the sub-market where these projects are located. She further explains that while property prices generally follow a pecking order led by the CCR, followed by the RCR, and then the OCR, recent launches indicate that this may no longer always be the case. As an example, Wong points out that The Collective at One Sophia, a CCR project launched in November, has sold 73 units at an average unit price of $2,743 psf, based on URA data up until the end of February. “This is lower than the average transacted price of units sold at Union Square Residences ($3,175 psf) in the RCR, and only slightly higher than that of The Orie ($2,734 psf), also in the RCR,” she continues. Meanwhile, recent OCR launches like Chuan Park, Elta, and Bagnall Haus recorded average unit prices of $2,589 psf, $2,544 psf, and $2,489 psf, respectively, surpassing RCR project Nava Grove, with an average unit price of $2,460 psf. Wong believes that the narrowing price gaps between regions could be due to various factors, including site-specific attributes of projects, amenity-driven pricing, demand by HDB upgraders, and the location of certain projects situated on the cusp of the CCR. She predicts that prices could converge further in the coming months as new RCR projects located just off the CCR, such as One Marina Gardens in Marina South and future developments on Zion Road residential sites, come to market. The strong momentum established at the start of the year is expected to be sustained in March, supported by recent launches such as the 477-unit Lentor Central Residences, the 188-unit Aurea, and the 760-unit Aurelle of Tampines EC. “As of mid-March, these projects have collectively sold over 1,150 units, promising a strong finish to the quarter,” notes Marchus Chu, CEO of ERA Singapore. As a result of the robust first-quarter sales, ERA has revised its projected figure for new private home sales for the entire year to between 8,500 and 9,000 units, up from its previous range of 7,000 to 8,000. Huttons’ Lee estimates that developers’ sales (excluding ECs) will surpass 3,200 units in the first quarter, making it the highest first-quarter sales since 2021. Moving into the second quarter, new launches that are potentially coming up include the 358-unit Bloomsbury Residences, the 937-unit One Marina Gardens, the 638-unit W Residences Singapore – Marina View, and the 107-unit Arina East Residences. Despite the strong momentum established at the beginning of the year, not all projects launched in the upcoming months may perform equally well, cautions Knight Frank’s Tay. “Homebuyer demand will primarily hinge on the specific location and attributes of each specific new project launch, with some projects doing better than others,” he says.