The top five projects with the highest rental yield are mostly located in the suburbs, according to a recent report.
Square Foot Research, an independent property research firm, revealed the top five developments with at least 30 rental contracts and four sales transactions recorded in Q2 2014 and Q3 2014).
SUITES @ EASTCOAST
The freehold development in District 15 topped the chart with a median rental yield of 7.1 percent. Completed in 2012, Suites @ Eastcoast (pictured) consists of 116 units, with more than half of them measuring smaller than 500 sq ft.
A total of six sales and 31 rental contracts were transacted in the last two quarters with a median rent and price of $6 psf pm and $1,018 psf.
Tampines Court recorded 46 rental contracts and six sales transactions with a median price of $2.07 psf pm and $532 psf in the past two quarters. Its median rental yield is 4.7 percent.
The 560-unit development in District 18, is located near industrial buildings which may explain the demand for rental units in the vicinity, said Square Foot Research. Tampines Court was privatised in 2002, and previously failed two en-bloc attempts in 2006 and 2011.
Park West rented out 48 of its 432 units in the past two quarters at a median rent of $2.90 psf pm. A total of four sales transactions were recorded during the same period at a median price of $753 psf, and median rental yield are at 4.62 percent.
It is also situated near an industrial estate in Clementi, and is currently one of the oldest and most inexpensive development available in the vicinity.
Located near Tanjong Pagar MRT station, Icon saw a total of 380 rental contracts from Q4 2013 to Q3 2014, representing 58 percent of its total units. Median rent and median price from 186 rental contracts and four sales transactions recorded in the past two quarters are $6.62 psf pm and $1,730 psf.
Rental yield for this 616-unit condo is 4.6 percent.
AQUARIUS BY THE PARK
Comprising 720 units, Aquarius by the Park in District 16 saw rental yield of 4.5 percent. 50 rental contracts and 10 sales transactions took place in the past two quarters with median rent and median price of $3.05 psf pm and $819 psf.
The project will soon benefit from the Bedok Reservoir Station (DTL), which is slated to be completed in 2017.
The report added the rental market is likely to remain competitive in the short run, due to the increased supply from completing projects launched since 2010 coupled with stricter policies for hiring foreign employees.