6 Tips to Find the Best Rental Yield Condo in Singapore
- Elvis Loo
- 3 days ago
- 6 min read
Let me be honest with you. In over a decade of helping buyers and investors navigate property investment in Singapore, the question I get asked most often isn't "where should I buy?".
It's this: "Elvis, how do I find the best rental yield condo?"
It's a brilliant question — and one that far too many buyers answer too late, after they've already signed on the dotted line.
Rental yield isn't an afterthought. It should be baked into your decision-making from the very first viewing.
So here are the six things I personally look at when helping clients find the best rental yield condo in Singapore.
1. Start With the Tenant, Not the Unit
Most investors make the mistake of falling in love with the development first and thinking about tenants second. I always flip that around.
Ask yourself: who is going to rent this flat, and why would they choose it over everything else on the market?
The strongest rental demand in Singapore consistently comes from expatriate professionals, bankers, and executives — particularly those working in or near the CBD. That pool of tenants is willing to pay premium rents, but they are also discerning. They want MRT access, a prestigious address, and proximity to the kind of lifestyle amenities that make Singapore feel like home.
This is precisely why I've been so enthusiastic about One Marina Gardens in District 1. It sits in the Marina South precinct, steps from the Marina South MRT Station on the Thomson-East Coast Line, with Gardens by the Bay and the entire Marina Bay Sands waterfront on its doorstep. The tenant profile for a project like this — expat professionals, finance sector workers, senior executives — is exactly the demographic that drives consistent occupancy and strong rents.
2. MRT Proximity Is Non-Negotiable — But the Line Matters
Not all MRT stations are created equal, and savvy investors know the difference. Being a five-minute walk from an MRT is wonderful. Being a five-minute walk from an MRT station that connects tenants directly to the CBD, Changi Airport, and Orchard Road without a single transfer? That is a different proposition altogether.
The Thomson-East Coast Line (TEL) has fundamentally changed how I look at investment properties in the east and the city fringe. It's a game-changer — a single line running from Woodlands all the way through the heart of the CBD and down to the east coast, with no interchange needed for huge swathes of the journey.
This brings me to Vela Bay at Bayshore in District 16, which I think is one of the most compelling investment stories on the east side right now. It is literally a one-minute stroll from the Bayshore MRT station — also on the TEL — giving future tenants a direct, no-fuss commute to Marina Bay, the CBD, and Orchard Road. For a tenant who works in the city and wants a more relaxed, coastal lifestyle without sacrificing connectivity, this is an incredibly compelling package.
3. First-Mover Advantage Is Real
There's a window — and it doesn't stay open for long.
When the URA designates a new residential precinct and the first developments start to launch, early buyers capture something that latecomers simply cannot: the combination of competitive pricing and outsized future appreciation as the area matures and amenities develop. It's not speculation; it's reading the urban planning map intelligently.
Both One Marina Gardens and Vela Bay represent first-mover plays in their respective precincts, and I genuinely believe both are well-timed.
One Marina Gardens launched as the first residential project in Marina South — a precinct that the URA has designated as a sustainable, car-lite, mixed-use district that will eventually comprise more than 16 development plots and approximately 10,000 new homes. As the pioneer development, it set the benchmark. Buyers who moved early locked in pricing that later entrants simply won't see.
Vela Bay, meanwhile, is the first private residential development in the newly master-planned Bayshore district — a 60-hectare township earmarked for around 10,000 new homes, green corridors, cycling paths, and significant community infrastructure. As the one who stakes a claim before the township fully develops, you stand to benefit enormously as the precinct fills in around you.
First-mover advantage is real, but it requires conviction. The area won't look its best on the day you
buy — that's the point.
4. Unit Mix and Size: Don't Ignore the Numbers
Here's something experienced investors know well: smaller units, done right, generate better percentage yields than large ones.
A well-located one- or two-bedroom unit at around 500 to 700 square feet can command rent that is disproportionately high relative to its purchase price, because the pool of potential tenants for a compact, city-adjacent flat — single professionals, young couples, corporate short-term lets — is simply enormous..
When I advise clients, I always look at the unit mix of a development carefully. A project weighted towards smaller units in a high-demand location is almost always going to outperform one dominated by large family units in the same spot, purely on a yield basis. That's not to say large units are bad investments — but you need a different thesis for them.
5. Look for Lifestyle Infrastructure, Not Just Amenities
There is a difference between a condo that has a gym and a pool, and a condo that sits within a lifestyle ecosystem.
The former is standard. The latter commands a rental premium.
By lifestyle ecosystem, I mean the combination of walkable retail, waterfront access, F&B options, green spaces, and recreational infrastructure that makes a location feel genuinely desirable to live in — not just convenient to commute from. Tenants, particularly at the premium end, are renting a lifestyle as much as a flat.
One such project is River Modern, offering exceptional waterfront living in the heart of District 9. Developed by GuocoLand, this 455-unit, 36-storey tower offers residents rare waterfront living at the heart of Singapore's Core Central Region. Directly connected to Great World MRT Station, River Modern offers panoramic views of the Singapore River and proximity to Robertson Quay’s vibrant lifestyle precinct.
I always tell my clients to look for a location where tenants will be proud to give as their address. Pride of address is underrated as a driver of occupancy rates.
6. Run the Numbers — Gross Yield Is Just the Beginning
Finally — and I cannot stress this enough — don't stop at the gross rental yield figure.
Dig deeper. Gross yield (annual rent ÷ purchase price × 100) gives you a starting point, but the net yield after accounting for property tax, maintenance fees, agent commissions, and vacancy periods is what actually goes into your pocket. For a non-owner-occupied residential property in Singapore, property tax alone can meaningfully dent your returns if you haven't modelled it properly.
A few things I always run through with clients:
Leasehold vs freehold. For yield investors, leasehold condos in Singapore often outperform freehold ones on a percentage basis, because the entry price is typically 10–20% lower whilst rental income — driven by location and quality, not tenure — remains comparable. Both One Marina Gardens and Vela Bay are 99-year leasehold, which makes them more accessible entry points relative to equivalent freehold options.
Vacancy risk. The best protection against vacancy is choosing a location with genuine, structural demand — not a hotspot that could cool. MRT-adjacent, precinct-growth plays, and strong lifestyle infrastructure are all structural demand drivers. Projects like Vela Bay and One Marina Gardens tick those boxes.
Future supply. If 3,000 new units are completing in the same area in the same year you plan to rent out your unit, expect some pricing pressure. Check URA's pipeline data. It's public, and it's invaluable. I’ll leave the link here: https://eservice.ura.gov.sg/property-market-information/pmiResidentialPipelinePrivateUnits
The Bottom Line: Best Rental Yield Condo in Singapore
There is no single "best rental yield condo in Singapore" that suits every investor — but there absolutely are principles that separate the astute purchases from the average ones. Know your tenant. Prioritise meaningful MRT connectivity. Move early in growth precincts. Choose the right unit size. Look for genuine lifestyle pull. And always, always run the full set of numbers before you commit.
Projects like One Marina Gardens and Vela Bay appeal to me professionally because they align with nearly every one of these principles — strong connectivity on the TEL, first-mover positioning in master-planned precincts, excellent lifestyle ecosystems, and a unit mix skewed towards investor-friendly configurations.
If you'd like to explore either of these developments — or have a broader conversation about where to position your property portfolio for yield in 2026 — I'd love to hear from you. Drop me a message at elvisloo@era.com.sg and let's have a proper conversation.
Investing in Singapore property is a long game. Let's make sure you're playing it well.
Elvis Loo is a licensed real estate professional based in Singapore. The above represents his personal views and professional experience and does not constitute formal financial advice. All figures cited are based on publicly available market data and analyst estimates at time of publication.
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