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What is Rental Yield?
Rental yield is a measure of the annual rental income as a percentage of the property's value. It is calculated using this formula:
Rental Yield (%) = (Annual Rental Income / Property Purchase Price) × 100
A higher rental yield indicates better returns on your investment. In Singapore, a gross rental yield of 3–4% is considered average, while anything above 4.5% is typically seen as strong.
Why High Rental Yield Matters
For real estate investors, high rental yield means:
- Faster return on investment
- Better cash flow
- Higher passive income
- Greater flexibility in property financing
Especially in a high-cost market like Singapore, rental yield plays a crucial role in determining the profitability of a property.
Top High Rental Yield Areas in Singapore (2025)
Below are some of the most promising areas in Singapore offering high rental returns.
1. Geylang
Average Rental Yield: 4.5% – 5.5%
Geylang is one of the top-performing areas for rental yield in Singapore. Despite its reputation in the past, Geylang has undergone significant transformation. It is close to the CBD, well-connected by MRT lines (Aljunied, Paya Lebar), and offers a wide range of food and lifestyle options.
Why It Performs Well:
- Affordable property prices
- High tenant demand (especially among expats and students)
- Proximity to business hubs
2. Jurong East
Average Rental Yield: 4% – 5%
Jurong East is the heart of the Jurong Lake District, Singapore's second CBD in the making. The government's plans for major developments, including the upcoming Jurong Region Line (JRL), make it an attractive location for long-term growth and high rental yield.
Why It Performs Well:
- Ongoing urban development projects
- Near international schools and industrial hubs
- High demand from foreign professionals
3. Woodlands
Average Rental Yield: 4% – 4.5%
Woodlands may not be central, but it attracts tenants working in the North Coast Innovation Corridor or commuting to Malaysia. With the upcoming RTS Link to Johor Bahru and continuous upgrading of amenities, the rental appeal is expected to grow.
Why It Performs Well:
- Lower entry property prices
- Proximity to Malaysia via the Causeway
- Emerging tech and innovation developments
4. Paya Lebar
Average Rental Yield: 4% – 5%
Paya Lebar has transformed into a bustling commercial and lifestyle area with the development of Paya Lebar Quarter (PLQ). It offers a blend of work-live-play elements and continues to attract working professionals.
Why It Performs Well:
- Strong commercial presence
- Excellent MRT connectivity
- Modern condominiums and mixed-use developments
5. Hougang
Average Rental Yield: 4% – 4.8%
Hougang is a mature residential estate with increasing interest from renters looking for affordable housing near the city fringe. The upcoming Cross Island Line (CRL) will make this area even more accessible.
Why It Performs Well:
- Value-for-money housing
- Steady rental demand from locals and foreigners
- New transport links enhancing accessibility
6. Toa Payoh
Average Rental Yield: 3.8% – 4.5%
Toa Payoh is centrally located and boasts excellent connectivity and amenities. While property prices are higher than outer towns, rental demand remains strong due to its accessibility and mature infrastructure.
Why It Performs Well:
- Central location
- Near schools, hospitals, and offices
- Always in demand for rentals
Factors That Affect Rental Yield in Singapore
Before investing based on yield alone, consider the following factors:
- Location & Accessibility: Proximity to MRT stations, schools, and CBD areas boosts rental value.
- Property Type: Condos near business hubs or educational institutions tend to yield more.
- Tenant Demographics: Areas near industrial parks or international schools attract steady rental demand.
- Future Developments: Places with upcoming MRT stations, malls, or business districts often see rising yields.
Tips to Maximize Rental Yield
- Buy Below Market Value: Look for undervalued properties in growing areas.
- Choose Efficient Layouts: Properties with practical layouts attract more tenants.
- Furnish Smartly: Offering a fully furnished unit can justify higher rent.
- Engage Property Agents: They help set competitive rental rates and manage tenants.
Conclusion: Investing Smartly in Singapore's Rental Market
Choosing the right location is crucial for property investors aiming for high rental yields. Geylang, Jurong East, Woodlands, and Paya Lebar stand out as top performers, each offering unique advantages for different tenant profiles. With Singapore's stable economy and strong rental demand, these high-yield areas provide great opportunities for both new and seasoned investors.
Important Link
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Tampines Street 95 EC Project Details
Tampines Street 95 EC Location
Tampines Street 95 EC Site Plan
How to Spot a Profitable Condo Investment Opportunity in Singapore
Top Mistakes Homebuyers Make When Choosing a Condo
Comparing Executive Condominiums and Private Condos in Singapore
Best Singapore Condos for Work-from-Home Professionals
How to Evaluate a Condo Developer's Track Record Before Buying
Tampines Street 95 EC Urban Pulse Deep Dive
Tampines Street 95 EC Developer
Tampines Street 95 EC Location
Tampines Street 95 EC Site Plan
Tampines Street 95 EC Sim Lian
Tampines Street 95 Executive Condo
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