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When contemplating an investment in a condo, it is crucial to evaluate the potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, condo rental yields can greatly fluctuate based 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. To gain a better understanding of a specific condo’s rental potential, it is advisable to conduct thorough market research and seek guidance from real estate agents. Additionally, staying updated with the latest New Condo Launches can also provide valuable insights into the rental market.
By Karen K. // The Edge PropertySingapore’s property market outlook was the main topic of discussion at EdgeProp Singapore’s Property Market Outlook event held on Feb 16. The event, moderated by EdgeProp Singapore CEO Bernard Tong, featured a panel of three industry experts who discussed the potential for new cooling measures, upcoming housing supply from government land sale (GLS) sites and Build-To-Order (BTO) launches, as well as potential impacts stemming from the Budget 2025 announcements.One of the main points of discussion was the government’s indication last month that it was willing to implement additional cooling measures in the market. The panelists noted that if new measures are implemented, they are likely to apply uniformly across the residential market rather than targeting specific sectors. They also discussed the possibility that new measures could focus on the HDB resale market, which they identified as the “floor” of the housing market in Singapore.Panelists also discussed the potential impact of the upcoming housing supply from GLS sites and BTO launches, which the government has announced will be a priority in the first half of 2025. However, the panelists agreed that the impact of these developments on prices will likely be felt much later on, as newly launched Prime and Plus BTO flats will take around 14 years to enter the resale market. They also noted that prices in the resale market tend to follow project completions and HDB estates completing their minimum occupation period rather than the pipeline of GLS sites up for tender each year.The panelists also weighed in on the recent successes of new launches so far this year, such as Elta, The Orie, and Bagnall Haus, which have experienced strong selling rates. They attributed this to strong buyer confidence and a healthy job market, which has increased property owners’ confidence in upgrading.The panelists also touched on the potential impact of the Budget 2025 announcements, with one panelist noting that Singapore has seen a relatively strong economic recovery since the Covid-19 pandemic. With 2025 being an election year, the panelist believes that Singaporeans can expect more handouts funded by government surpluses stemming from healthy government revenue collections in the past three years.During the event, Tong also presented a session of EdgeProp’s Master Plan Master Class, which covered upcoming transformation plans in Clementi and Jurong East. He highlighted the completion of the second phase of the Cross Island Line, which will add a new MRT station and turn the existing Clementi station into an interchange. He also noted that MRT interchanges tend to have a positive impact on surrounding property prices.The panelists also discussed the rental market this year, which has slowed since its peak two years ago. They agreed that falling rents are likely to moderate rental price growth this year, but noted that this could be offset by layoffs among technology and finance companies.As the event came to a close, the panelists took questions from the audience, with some participants questioning whether the residential property market is in a “euphoric” phase. The panelists agreed that the sense of market exuberance is likely to subside as developers strategically time the launch of new projects, and that a surge in price growth in the HDB resale market could add upward pressure on prices in the private housing segment.