Forest Hills Condominium Investment Returns: Rental Yield Analysis shows that this Mandai / Upper Thomson development offers one of the more attractive risk‑adjusted returns among older District 26 condos, with gross rental yields around 3.5–3.9% based on recent 2024–2025 rents and transacted sale prices.
For buyers comparing Singapore condos for sale in the north, Forest Hills Condominium on Transit Road combines relatively affordable entry prices, steady tenant demand and a green, low‑density setting that appeals to both own‑stay buyers and investors.
This focused guide supports Homejourney’s main Forest Hills buyer pillar article Forest Hills Condominium For Sale in D26: 2026 Buyer Guide | Homejourney by zooming in on investment returns and rental yield, so you can decide if this development should be in your shortlist.
Forest Hills Condominium: Quick Investment Overview
Forest Hills Condominium is a 99‑year leasehold project along Transit Road in District 26 (Mandai / Upper Thomson), with a low‑rise, resort‑style feel backing onto greenery and the Mandai military training area.
Walking around the estate, you notice how quiet it gets in the evenings compared with Yishun or Sembawang town centres – many residents choose to jog along Sembawang Road or cycle toward Mandai and Upper Seletar Reservoir after work.
From a numbers perspective, recent data indicates:
- Average selling price around $1,080–$1,150 psf for typical 2–3 bedder units based on 2024–2025 resale caveats.[2]
- Average rent around $3.20–$3.80 psf, with 3‑bedroom units of 1,100–1,200 sq ft commonly achieving $3,800–$4,800 per month in 2024–2025.[1][2]
- Implied gross rental yield about 3.5–3.9%, above the District 26 average of roughly 2.7–3.0%.[1][3][7]
- Two‑year price growth of about 23–24%, outpacing the broader D26 average of around 16–17%.[1]
For an older city‑fringe‑adjacent condo, this combination of below‑district‑average psf prices and above‑average yield is what attracts seasoned investors to Forest Hills Condominium.
Available Unit Types & Typical Sale Prices
Forest Hills Condominium is mainly a family‑oriented development, so you see more spacious 2‑ and 3‑bedroom units than compact shoebox layouts. For exact configurations and floor plans, refer to Homejourney’s dedicated guide: Forest Hills Condominium Unit Types & Size Guide for Buyers | Homejourney .
Typical units you can buy
- 2‑Bedroom (approx. 1,000–1,100 sq ft): Popular with couples and smaller expat families who want more space than newer launches typically offer.
- 3‑Bedroom (approx. 1,100–1,300 sq ft): The workhorse unit type here; ideal for own‑stay families and investors targeting long‑term tenants.
- 4‑Bedroom / Penthouse‑type (approx. 1,700–1,800+ sq ft): Limited supply; attractive for multi‑gen families, but resale liquidity can be thinner.
Indicative 2026 price expectations (resale)
Based on recent 2024–2025 URA‑registered transactions and market data, buyers can expect approximate pricing such as:[1][2]
- 2‑bedroom (≈1,000–1,100 sq ft): $1.1M–$1.25M (~$1,050–$1,150 psf)
- 3‑bedroom (≈1,150–1,300 sq ft): $1.2M–$1.45M (~$1,050–$1,150 psf)
- 4‑bedroom / larger (≈1,700–1,800 sq ft): $1.8M–$2.0M (~$1,050–$1,150 psf)
Disclaimer: All price figures are estimates derived from publicly available URA transaction data and third‑party market sources as at 2024–2025, and may change. Always verify current listings and recent caveats on Homejourney’s project page before making decisions.
Most popular unit type for investors: 3‑bedroom stacks around 1,150–1,250 sq ft – they balance purchase price, rentability and exit liquidity well.
To see live listings and exact asking prices:
View all units for sale at Forest Hills Condominium: Property Search
Rental Yield Analysis: How Strong Are Returns?
To understand Forest Hills Condominium Investment Returns: Rental Yield Analysis properly, we look at both the headline yield and the underlying tenant demand.
Step‑by‑step yield calculation (illustrative)
Using recent transaction patterns:[1][2]
- Assume a 3‑bedroom unit of 1,200 sq ft bought at $1,100 psf → purchase price ≈ $1,320,000.
- Recent 3‑bedroom rents commonly range from $3,800–$4,800 per month depending on condition and level.[2]
- Using a conservative $4,000 / month → annual rent ≈ $48,000.
- Gross yield = $48,000 ÷ $1,320,000 ≈ 3.64%.
This falls in the same band as published average yields for Forest Hills (around 3.5–3.8%), and is generally higher than many newer OCR condos with psf pricing above $1,800.[1][3][7]
After‑cost yield considerations
From walking the development, you can tell most blocks are well‑maintained but not brand‑new – so budget a bit more for ongoing maintenance versus fresh TOP projects:
- MCST fees: Typically in the range of a few hundred dollars per month; confirm exact amount with your agent or MCST.
- Maintenance & servicing: Regular air‑con servicing, minor repairs, repainting between tenancies etc. For estimates and reliable vendors, Homejourney’s Aircon Services directory is a useful starting point.
- Property tax: Non‑owner‑occupied rates for investment units, based on annual value (AV) published by IRAS.
Many investors target a net yield of around 2.8–3.2% after these costs, which is still competitive in today’s interest rate environment.
Why Investors Buy Forest Hills Condominium
From speaking with residents and investors in the Mandai / Yishun corridor, these are the usual reasons Forest Hills Condominium stays on their radar:
- Value pricing: Average psf around $1,100 is significantly lower than the broader District 26 average of about $1,670 psf, giving you more space for the same budget.[1]
- Above‑average yield: Rental yields in the mid‑3% range compare well with district and island‑wide averages.[1][7]
- Quiet, green lifestyle: Residents like the proximity to greenery and the relative seclusion compared with more crowded Thomson areas.
- Family‑friendly sizing: Larger unit sizes make it easier to rent to families staying 2–3 years, reducing vacancy risk.
- Price momentum: 2‑year price growth outpacing District 26 suggests healthy demand and perceived under‑valuation earlier.[1]
If you want a deeper breakdown of capital values and buyer demand, see: Forest Hills Condominium Price Trends & 2026 Buyer Analysis | Homejourney .
Price Trends & Comparison with Nearby D26 Properties
According to independent D26 analyses, Forest Hills Condominium has historically offered yields at the upper end of the district range, alongside selected neighbouring developments in the northern fringe.[7] District 26, which covers Upper Thomson, Mandai and parts of Yio Chu Kang, has seen steady rental demand from families and expats working in the north and along the Thomson‑East Coast Line corridor.
How Forest Hills compares
- Price per square foot (psf): Around $1,100 psf vs District 26 average of about $1,670 psf – roughly 30–35% lower.[1]
- Rental yield: Forest Hills around 3.5–3.8% vs district yields often closer to 2.5–3.0%.[1][7]
- Distance to MRT: Approx. 800+ m to the nearest station – further than some, but still walkable or a short bus ride.[1]
In plain terms, you’re trading a slightly longer walk or bus ride to the MRT for a noticeably lower entry price and better yield metrics.
Location & Connectivity: Transit Road, Mandai / Upper Thomson
Forest Hills Condominium sits off Transit Road, just off Sembawang Road. If you’ve taken buses 167, 169, 980 or 980M along this stretch, you’ll recognise the quiet, leafy feel and the cluster of condos set back from the main road.
Nearest MRT & buses
- Nearest MRT: Khatib MRT (NS14, North‑South Line) and Yishun MRT (NS13). In practice, most residents use buses along Sembawang Road (about 5–8 minutes’ walk, depending on block) to connect to these stations.
- Estimated distance to MRT: Around 800 m, or about 10 minutes on foot at a relaxed pace for most adults.[1]
- Quick access to CTE/SLE via Lentor Avenue and Yishun Avenue 1 for drivers, with Mandai Road giving a direct route towards the Bukit Timah / PIE corridor.
Nearby schools
Within a short drive or bus ride, you’ll find a mix of neighbourhood and brand‑name schools such as (exact distances may vary; always confirm on OneMap or MOE school finder):
- Naval Base Primary and Secondary
- Northland Primary and Secondary
- Chongfu School (popular primary option in Yishun)
- Yishun Town Secondary, Orchid Park Secondary
The availability of schools within 1–3 km is important for both own‑stay buyers and families renting in the area.
Amenities, parks & daily convenience
- Groceries & food: Wisteria Mall at Yishun Ring Road, Chong Pang City, and Northpoint City near Yishun MRT offer supermarkets, food courts and clinics.
- Recreation: Lower Seletar Reservoir Park, ORTO area (undergoing redevelopment), and Mandai’s nature and wildlife cluster provide weekend options.
- Lifestyle: The Upper Thomson stretch, about a short drive away, has well‑known cafes and eateries – a common dinner destination for residents here.
District 26’s appeal lies in being close to nature while still offering access to mature estate amenities, which helps support both rental and resale demand.
Financing Your Purchase & Evaluating Returns
Before you buy a Forest Hills Condominium unit for investment or own‑stay, it is critical to align your budget, loan structure and expected returns.
1. Estimating monthly mortgage
Using an indicative example:
- Purchase price: $1,320,000 (3‑bedroom, 1,200 sq ft)
- Assumed loan: 75% (LTV) → $990,000
- Interest rate: e.g. 3.3% p.a. (varies by bank and package)
- Tenure: 25 years
Monthly repayment may sit around the high $4,000s to low $5,000s, depending on exact rate and tenure. Use Homejourney’s live tools to test your own scenario: Check your buying power with our mortgage calculator Bank Rates .
2. Down payment & CPF usage
- For Singapore Citizens buying their first private property, minimum cash down payment is typically 5%, with another 20% payable via cash and/or CPF Ordinary Account, subject to MAS LTV rules.
- CPF usage is limited by the Valuation Limit and remaining lease of the property relative to the youngest buyer’s age (CPF Board rules).
For a full breakdown of financing structures specific to this project, refer to: Forest Hills Condominium Home Loan & Financing Guide | Homejourney .
3. ABSD & buyer profile considerations
Singapore’s Additional Buyer’s Stamp Duty (ABSD) framework is a major factor for investment purchases. The applicable ABSD rate depends on your residency status and how many residential properties you already own. Always confirm the latest ABSD rates from IRAS or your conveyancing solicitor, and budget this into your upfront costs.
Buying Process & How Homejourney Keeps It Safe
Homejourney is built around user safety and verified information, which is especially important for private resale condos where pricing, titles and unit details must be checked carefully.
Typical steps to buy a Forest Hills unit
- Shortlist units on Homejourney using filters for price, size and floor level: Property Search .
- Arrange viewings with a trusted salesperson. Homejourney prioritises agents who understand the Mandai / Upper Thomson micro‑market and can explain past transactions transparently: .
- Check project data
References
