Non-landed Housing Development Investment Analysis: Understanding Rental Yield and Growth Potential
For property investors evaluating non-landed housing developments in Singapore, understanding the relationship between rental yields and capital growth is essential for making informed decisions. Non-landed private residential properties—particularly condominiums in prime locations like District 08 around Truro Road and Farrer Park—have demonstrated resilient performance throughout 2025, with rental yields averaging 3.36% across the island[1]. This cluster article examines the specific investment dynamics of non-landed housing developments, providing actionable analysis to help you assess whether such properties align with your investment strategy.
Current Rental Yield Performance in Non-landed Housing Developments
The Singapore non-landed residential market has entered a more stable phase in 2026, with rental growth moderating to sustainable levels. In 2025, non-landed properties recorded a 2.3% year-on-year rental increase, with particularly strong performance in central regions[4]. The Core Central Region and Rest of Central Region saw rental growth of 2.5% and 2.8% respectively, outpacing the overall market average[4].
Current gross rental yields for non-landed properties average 3.36% across monitored submarkets, with regional variations providing opportunities for strategic investors[1]. Notably, Hougang/Punggol/Sengkang recorded yields of 3.60%, while Alexandra/Commonwealth achieved 3.51%—both above the national average[1]. For District 08 properties like those on Truro Road, the location within the Rest of Central Region positions them to benefit from the 2.8% year-on-year rental growth observed in this segment[4].
The rental market data shows advertised rents for 1-bedroom units at USD 2,740 (approximately SGD 3,700), 2-bedroom units at USD 3,520 (approximately SGD 4,750), and 3-bedroom units at USD 4,930 (approximately SGD 6,650)[1]. These reference points help investors calculate expected rental income for different unit types when evaluating non-landed housing developments.
Rental Growth Outlook for 2026 and Beyond
Market analysts predict that rental growth for non-landed properties will remain moderate in 2026, with expectations of 2.5% to 3% annual increases[2]. This moderation reflects a market transitioning from the sharp adjustments of earlier years to a more balanced, fundamentally sound phase driven by genuine housing demand rather than speculation[3].
Several factors will influence rental growth trajectories. Rising supply of new private homes—with projections expanding from 5,249 units receiving TOP in 2025 to 7,006 units in 2026—will create additional rental inventory and potentially cap aggressive rent increases[2]. However, this increased supply also indicates sustained development activity, which typically correlates with improved infrastructure and amenities in surrounding areas, benefiting existing developments through location appreciation.
The luxury non-landed segment (condominiums in the Core Central Region valued at SGD 5 million and above, exceeding 2,000 sq ft) experienced a 4.3% rental decline in 2024 but recovered with approximately 2% growth in 2025[2]. This segment's stabilization suggests that even premium properties are finding rental equilibrium, indicating a maturing market where yields become more predictable for long-term investors.
Capital Growth Potential for Non-landed Housing Developments
Beyond rental yields, non-landed properties have demonstrated solid capital appreciation. In Q3 2025, non-landed private home prices rose 0.82% quarter-on-quarter and 5.57% year-on-year, supported by firm demand across various market segments[1]. The Core Central Region showed the strongest performance with 1.68% quarterly and 8.28% annual price increases, driven by notable new launches[1].
District 08 properties benefit from their positioning in the Rest of Central Region, which has shown consistent price resilience. The combination of moderate rental yields (3.36% average) and steady capital appreciation creates a balanced investment profile suitable for investors seeking both income and long-term wealth accumulation. Properties on Truro Road in Farrer Park offer accessibility to both the CBD and established residential amenities, supporting both rental demand and capital growth.
Looking ahead to 2026, new private home prices are expected to reach fresh highs as supply tightens amid firm demand and rising construction costs[6]. This supply-demand dynamic typically supports capital appreciation for existing developments, as new launches command premium pricing that elevates the overall market value of comparable properties.
Evaluating Investment Returns: Total Return Analysis
When assessing non-landed housing development investments, evaluate total returns by combining rental yield with capital appreciation potential. For example, a property purchased at SGD 1.2 million with a 3.36% gross rental yield generates approximately SGD 40,320 in annual rental income. If capital appreciation averages 4-5% annually (conservative estimate based on recent trends), the property value could increase by SGD 48,000-60,000 annually, resulting in total returns of 7.3% to 8.3%.
However, investors must account for expenses including property tax, maintenance fees, agent commissions, and potential vacancy periods. Typical expenses reduce gross yields by 1-1.5%, bringing net yields to approximately 1.86% to 2.36%. When combined with conservative capital appreciation of 4%, total net returns approach 5.86% to 6.36%—competitive with traditional investment vehicles while offering tangible asset backing.
Homejourney's mortgage rates calculator helps investors model different financing scenarios, allowing you to understand how loan structures affect overall investment returns. By comparing various loan terms and interest rates, you can optimize your financing strategy to maximize net returns.
Market Demand Drivers for Non-landed Housing Rentals
Several structural factors support continued rental demand for non-landed properties. Total non-landed rental transactions rose 3.8% year-on-year to 84,622 units in 2025, reflecting sustained leasing activity despite moderated growth[3]. This demonstrates genuine, consistent demand from tenants rather than speculative activity.
Foreign worker populations continue growing, with 2.7% year-on-year growth to 1.91 million in June 2025, adding 34,000 workers across all pass types[2]. This expanding workforce, combined with young professionals and expatriates seeking flexible housing solutions, ensures continued demand for non-landed rental properties. District 08's proximity to employment centers and transportation hubs makes properties on Truro Road particularly attractive to this demographic.
Additionally, 85.3% of non-landed private property households are owner-occupied, indicating that only 14.7% of the stock is available for rental[2]. This limited rental supply relative to demand supports rental rate stability and growth potential, particularly in well-located developments.
Financing Your Non-landed Housing Development Investment
Mortgage financing significantly impacts investment returns. Current fixed-rate mortgages range from 1.55% to 2.40% during the locked period, while floating-rate options range from 1.65% to 2.30%[1]. Lower financing costs directly improve net returns by reducing annual debt servicing expenses.
For investors, comparing mortgage options is crucial. A SGD 1 million property financed at 1.80% fixed rate over 25 years costs approximately SGD 4,740 monthly, while the same property at 2.30% costs SGD 4,860 monthly—a SGD 120 monthly difference that compounds to SGD 36,000 over the loan term. Homejourney's bank rates comparison tool enables you to evaluate these differences transparently, ensuring you secure the most competitive financing available.
Comparing Non-landed Housing Developments: Key Investment Criteria
When evaluating specific non-landed housing developments like those on Truro Road, assess these investment-critical factors:
- Rental Yield Potential: Calculate expected gross yield based on current market rents for comparable unit types in the same district
- Unit Mix: Developments with higher proportions of 2-3 bedroom units typically generate stronger rental demand than studio-heavy projects
- Location Premium: Proximity to MRT stations, employment centers, and amenities commands rental premiums of 10-15% over average district rates
- Developer Track Record: Established developers with strong maintenance records and responsive management support property values and rental competitiveness
- Lease Remaining: For leasehold properties, verify years remaining on the lease, as properties below 80 years face declining valuations
- Capital Appreciation History: Review 3-5 year price trends for comparable developments to assess realistic appreciation expectations
For comprehensive analysis of specific non-landed housing developments, Homejourney provides detailed project analysis and market data that helps you compare developments objectively based on verified information.
Risk Considerations for Non-landed Housing Development Investors
While non-landed housing developments offer attractive investment potential, investors should understand key risks. Market saturation in certain districts could pressure rental yields if new supply significantly exceeds demand growth. The projected increase in new homes receiving TOP—from 5,249 in 2025 to 7,006 in 2026 and 8,955 in 2027—indicates accelerating supply that may eventually moderate rental growth[2].
Economic headwinds, including cautious hiring outlooks noted by market analysts, could reduce tenant demand and rental rate growth[2]. Additionally, interest rate movements affect both property valuations and investor purchasing power, potentially impacting capital appreciation.
Vacancy risk varies by location and unit type. Well-located developments in District 08 near Farrer Park and Little India typically maintain lower vacancy rates due to strong tenant demand, but investors should budget for occasional vacancies and maintenance costs when modeling returns.
Strategic Positioning: Non-landed Housing Developments vs. Alternatives
Non-landed housing developments offer distinct advantages for certain investor profiles. Compared to landed properties (which recorded only 1.6% year-on-year rental growth in Q3 2025), non-landed properties provide superior rental yields at 2.7% year-on-year growth[1]. For income-focused investors, this 1.1 percentage point rental yield advantage is significant.
Compared to HDB properties, non-landed condominiums offer higher rental yields, greater flexibility in lease terms, and stronger capital appreciation potential, though at higher entry prices. Compared to commercial properties, residential non-landed developments provide more stable, predictable tenant demand and simpler management requirements.
For investors seeking balanced returns combining steady rental income with capital appreciation, non-landed housing developments in strategic locations like District 08 represent a compelling middle ground between ultra-conservative and speculative investment approaches.
Finding and Evaluating Specific Non-landed Housing Developments
To identify investment opportunities in non-landed housing developments, start by browsing available properties on Homejourney's property search platform, where you can filter by location, unit type, price range, and other investment criteria.
For specific developments like those on Truro Road in District 08, review related guides covering Non-landed Housing Development D08: Units, Prices, Truro Road Guide | Homejourne... ">unit types, prices, and specifications, Non-landed Housing Development D08: Floor Plans & Facilities Guide | Homejourney ">floor plans and facilities, and Non-landed Housing Development D08: Schools, Shopping, Transport Guide | Homejou... ">location advantages including schools, shopping, and transport. These resources provide the detailed context necessary for investment analysis.
Homejourney's agent network includes specialists in non-landed housing development investments who can provide market insights, comparable sales data, and rental market analysis specific to your target properties and investment timeline.
Frequently Asked Questions About Non-landed Housing Development Investment
What is a realistic rental yield for non-landed housing developments in Singapore?
Current gross rental yields for non-landed properties average 3.36% across Singapore, with variations by location[1]. Central region properties typically yield 2.5-2.8%, while outer regions may achieve 3.5-3.6%[1][4]. After accounting for expenses (maintenance, property tax, vacancy), net yields typically range from 1.8% to 2.4%. Combined with capital appreciation of 4-5%, total returns typically reach 5.8-7.4% annually for well-located developments.
How much will rental growth increase in 2026 for non-landed properties?
Market analysts expect rental growth for non-landed properties to remain moderate in 2026, with increases of approximately 2.5% to 3% year-on-year[2]. This moderation reflects rising supply of new homes and a market transitioning to more sustainable growth rates. Central region properties may outperform this average, while outer regions may see slower growth due to increased supply.
Are non-landed housing developments better investments than HDB properties?
Non-landed condominiums offer higher rental yields (2.7% vs. lower HDB yields), greater lease flexibility, and stronger capital appreciation potential, but require larger capital investment. HDB properties offer affordability and strong tenant demand from budget-conscious renters. The choice depends on your investment capital, target tenant profile, and return objectives. Non-landed developments suit investors prioritizing yield and appreciation; HDB suits those maximizing affordability and volume.
What factors most influence non-landed property rental yields?
Key factors include location (proximity to MRT, CBD, employment centers), unit type (2-3 bedroom units typically yield better than studios), amenities (swimming pool, gym, security), and lease remaining (properties below 80 years face yield compression). Market demand from foreign workers, young professionals, and expatriates also significantly impacts rental rates and vacancy levels.
