We Analysed Condos Near 5 International Schools In Singapore — One Area Had Surprisingly High Rental Yields

Rochester Residences and Dover Parkview are within 2km of both schools, with Dover Parkview being within a kilometer from UWC Dover, and Rochester Residences within a kilometer from Tanglin Trust.

We found that resale prices at Rochester Residences commanded some of the highest rates among all of the condos we surveyed in this article; with resale units fetching a median price of $2.87 million but most rental units there going at a monthly median rent of $6,500 for a two-bedroom unit, and $9,000 for a three-bedroom unit.

The combination of price and rent at both of these developments results in the higher end of yields compared to other nearby condos in the area, with most landlords at Rochester Residences reaping a net yield of 3.21% and landlords at Dover Parkview seeing a net yield of 3.29%.

A note on one-bedroom units

Overall, we usually see that one-bedroom units tend to record higher rental yields compared to two- or three-bedroom units. But this is largely attributed to the fact that the yield to quantum ratio decreases with square footage.

And we observed this trend hold throughout all but one of the condos close to international schools. While two- and three-bedroom units in condos near Tanglin Trust and UWC Dover recorded median net yields of 2.9% to 3.3%, one-bedroom units took home net yields of 3.9% to 4.4%.

When it comes to expat families who send their children to international schools in Singapore, we still expect two- and three-bedroom units to be the preferred unit type, since those units offer the best balance of liveability, space, and affordability.

There was one international school which had a strong enough demand to buck this trend. That was the Singapore American School, where the two- and three-bedroom units at condos around it posted yields between 3.5% and 4.9%, respectively – and higher than their one-bedroom counterparts.

Meaningful returns in the North

We also wanted to examine if condos at the doorstep of international schools are able to command premium rents compared to those slightly further away. And we found this to be true for the developments neighbouring the Singapore American School (SAS).

Located at Woodlands Street 41, close to the Marsiling neighbourhood, SAS was founded in 1956 and its 1.5ha campus accommodates over 4,000 students. The land is on a 90-year lease and the existing campus was developed at the cost of $150 million, and welcomed its first students in 1996.

Two- and three-bedroom condo units that are sited within a kilometer of the school recorded exceptionally strong rental returns of 4.84% and 4.86%, respectively. On the other hand, developments beyond this distance posted net rental yield of about 3.57% for both unit types.

However, we caveat this by stating that we were only able to reasonably rely on transaction data from two private residential developments close to SAS.

Two-bedroom yields near SAS

Three-bedroom yields near SAS 

Our initial suspicion is that this is an effect of the school itself, especially because it has the largest AP programme in the world outside of the US. But we believe that it might have more to do with the geography of the area, with the school being a key rental demand driver in a neighbourhood that is otherwise far from the central region.

The neighbourhood around the school does tend to give off a uniquely American feel that is not found elsewhere in Singapore, based on a handful of visits I’ve taken there.

This disparity in terms of net rental yield could even come down to the topography of the neighbourhood. The school sits at the edge of the neighborhood, bound by Seletar Expressway and Bukit Timah Expressway. The relative scarcity of available homes in this area contributes to the high competition for rental homes there.

The two-bedroom units at The Woodgrove recorded the highest rental yield of 4.84% within the two-bedroom segment, while the three-bedroom units in Woodgrove Condominium took the top spot among the three-bedders. The neighbouring developments are within 1km of SAS, which explains the razor-thin difference.

Rental yields around other international schools were much less pronounced

Over in the West is Dulwich College which is found in Bukit Batok. But the condos surrounding it barely posted any difference in yields – particularly the condos less than a kilometer away from the school, and those that are between two and three kilometers away.

Dulwich College, the British school founded in 2014, has improved its reputation in recent years, according to anecdotal reports from the expat community in Singapore. It’s unique because the British-based school has a sole IB Diploma focus and does not offer A levels, unlike others like Tanglin Trust.

Two-bedroom yields near Dulwich College

Three-bedroom yields near Dulwich College

Overall, we noted that the highest rental yields for each unit type were developments that are further than a kilometer from the school. The two-bedders at Regent Heights command a median monthly rent of $3,650 and a net rental yield of 3.84%, while the two-bedders at Westmere lease for around $4,500 per month and rake in a net rental yield of 3.86%.

In this neighborhood, there was also no significant difference between the net yield of two- and three-bedroom units, for condos close to Dulwich College.

Condos around other international schools didn’t see that much more appealing yields at all

The Stamford American International School, close to Woodleigh MRT station on the North-East Line, is one of the international schools that seem to have a marginal impact on rents among nearby condos.

Based on the data compiled by Stacked, condos close to the school posted the lowest two- and three-bedroom yields among the entire dataset. This ranged from 2.95% to 3.00% for two-bedroom units, and 2.66% to 2.88% for three-bedroom units.

This is despite apparently positive locational attributes, such as proximity to Woodleigh Mall, neighbourhood amenities, and public transport options. Two of the projects in this area are either linked to MRT stations or right beside them – namely, The Woodleigh Residences and Poiz Residences.

Among all of the three-bedroom rental yields that we consolidated here, The Poiz stood out amongst the other nearby developments, posting a net rental yield of 3.28% – against the others which were largely less than 3%. The median monthly rent for a three-bedroom unit at The Poiz was $6,100.

Three-bedroom yields near Stamford American International School 

We also took a look into whether the relocation of an international school improves the rental yields of surrounding condos.

Both the German European School Singapore and Overseas Family School relocated their campuses in the last 10 years. 

The German School relocated from Bukit Timah to Bukit Panjang in 2018. We saw rents for two- and three-bedroom units within a two kilometer radius from the school begin to climb after the school’s relocation, compared to before.

In the years leading up to the relocation, rents held steady across most of the developments. Resale prices began to rise year on year after 2018 for a period of about four years, as the market began to price in the school’s proximity.

2-bedroom units

3-bedroom units

Overall, the trajectory of yields reflected this rental growth. But we also can’t discount the impact of nearby developments too: for example, the three-bedroom rents in Glendale Park, Hillview Park, and The Dairy Farm rose between 2018 and 2021, while the available yields remained below pre-relocation levels. This could be due to purchase prices rising just as quickly as rental prices in those developments.

Furthermore, we saw the sharpest rental growth in 2022 and 2023, but this was due to islandwide increases in the rental market, and cannot be attributed directly to the opening of the new campus in the neighborhood.

2-bedroom units

3-bedroom units

Broadly speaking, we saw similar rental and yield trends taking shape in the condos around the new Overseas Family School. That international school relocated from Orchard to Pasir Ris in 2015.

Conclusion

In general, rental yields for condos close to most international schools in Singapore have benefitted from the proximity. We saw rental yields largely over 3% in most cases, which is already considered relatively high among the average rental property in Singapore.

We also deduced that rentability is strong among the condos around these schools, and for landlords – being able to fill your units with tenants, while avoiding months where your condo sits empty – is half the battle won.

But we also conclude that in most areas where a sizeable proportion of rental demand is anchored by an international school, a condo less than one kilometer away from the school was not likely to have outsized returns compared to those just over a kilometer from the school.

Proximity to an international school was not enough to overwrite the overarching rental effect we see across Singapore, where one-bedroom condos usually offer stronger yields than two- or three-bedroom units because of their smaller absolute quantum. But of course, tenants of one-bedroom condos are less likely to be school going families.

Thus, investing in a property close to an international school gives you good protection against all but the most severe up-and-down cycles in the residential market, since demand in these areas is usually stable and consistent.

But we wouldn’t look too much into just how close the condo is, as long as it’s accessible and convenient to the school. That’s unless you are planning to buy in Woodlands, to target the SAS-going family. Instead, getting a good deal for a good product that will attract these families, will attract the right tenants.