Like many property buyers, you’ve probably had a chance to squint at a tiny floor plan of a compact unit (510 sq.ft. or under). Some of them are so small, you may have stayed in motel rooms that offer more legroom.
(Fun fact: the smallest condo unit in Singapore is at Suites @ Guillemard, at about 258 sq. ft. For comparison, the average two-room flat is 387 sq.ft.)
And it even still has room for bay windows
Despite this, you’ll often be told that compact units are great for rental yields. An oft-used guideline in the Singapore private property market is that the average condo rental yield is two to three per cent, whereas compact units tend to yield three to four per cent.
In this article, we try to see if that’s accurate, and whether it changes based on the property’s location:
A quick summary of rental yield
The gross rental yield is the annual rental income generated by the property...