Singapore’s Queenstown estate is home to many private non-landed residential projects that offer high gross rental yields, revealed a report from OrangeTee Research.
In fact, there are six developments there that have gross rental yields of at least four percent. These are Vista Park, Parc Imperial, Heritage View, One-North Residences, Dover Parkview and Queens.
All of the projects are more than 10 years old except for Parc Imperial, which is consistent with the consultancy’s observation that older non-landed homes tend to generate higher rental yields.
“Queenstown is enjoying good rental demand due to its ideal location attributes. It is centrally located and a short drive away from Orchard Road and the Central Business District (CBD),” said OrangeTee Research.
It is also close to major job centres and education clusters which have kept rental demand healthy in the area, like the National University of Singapore and the city-state’s main R&D and high technology cluster One North, the report added.
The non-landed projects tracked in OrangeTee’s study have more than 100 units, while the resale prices span over Q2 2014 to Q1 2015. To mitigate the effects of outliers that may skew rental yields, projects with fewer than 20 rental transactions and five resale deals were excluded. Privatised HUDCs and Executive condominiums (ECs) were omitted as well. The gross yields do not include other costs such as maintenance fees and vacancy costs.
Below are the details of the six high-yielding developments in Queenstown. To be considered close to an MRT station, the project must be within 400 metres.
1. Vista Park
Close to MRT: No
Tenure: 99-Year
Average Rent: $3.44 psf
Sales Price: $886 psf
Estimated Gross Yield: 4.7 percent
Year Completed: 1985
2. Parc Imperial
Close to MRT: Yes (Haw Par Villa)
Tenure: Freehold
Average Rent: $6.11 psf
Sales Price: $ 1,727 psf
Estimated Gross Yield: 4.2 percent
Year Completed: 2010
3. Heritage View
Close to MRT: No
Tenure: 99-Year
Average Rent: $3.89 psf
Sales Price: $1,156 psf
Estimated Gross Yield: 4.0 percent
Year Completed: 2000
4. One-North Residences
Close to MRT: No
Tenure: 99-Year
Average Rent: $4.69 psf
Sales Price: $1,396 psf
Estimated Gross Yield: 4.0 percent
Year Completed: 2000
5. Dover Parkview
Close to MRT: No
Tenure: 99-Year
Average Rent: $3.56 psf
Sales Price: $1,065 psf
Estimated Gross Yield: 4.0 percent
Year Completed: 1997
6. Queens
Close to MRT: Yes (Queenstown)
Tenure: 99-Year
Average Rent: $4.18 psf
Sales Price: $1,255 psf
Estimated Gross Yield: 4.0 percent
Year Completed: 2002
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
