The Essentials of Choosing a Condo With Strong Rental Demand

Want consistent rental income? Learn what features—like proximity to MRTs, universities, and business hubs—make a condo irresistible to tenants and how to assess a project’s rental viability.

lakesidegrand

Jul 4, 2025 - 15:38

Jul 5, 2025 - 10:52

The Essentials of Choosing a Condo With Strong Rental Demand

For property investors in Singapore, rental demand is one of the most important factors to consider. A condo with high rental appeal means steady cash flow, lower vacancy rates, and better returns over time. But not all properties are created equal when it comes to attracting tenants.

So how do you identify a condo that will perform well in the rental market? Here are the key essentials every investor should keep in mind.

1. Location, Location, Location

It’s a classic rule in real estate for a reason. Tenants prioritise convenience, and so should you as an investor.

Look for condos that are:

Within walking distance to MRT stations or bus interchanges
Close to major employment hubs such as the CBD, One-North, or Jurong Lake District
Near lifestyle amenities like shopping malls, cafes, gyms, and parks

For example, condos near Orchard, Raffles Place, or regional hubs like Paya Lebar Quarter tend to attract a steady stream of expatriates and young professionals.

2. Target Tenant Profile

Understanding who your potential tenants are can help you choose the right property.

Expatriate families may prefer larger units in districts with international schools and parks.
Single professionals often look for smaller units with modern amenities close to MRT stations and workplaces.
Students seek affordable units near universities or polytechnics.

Aligning your condo choice with tenant demographics ensures you’re catering to real demand.

3. Modern Facilities and Amenities

Tenants today expect more than just four walls. Condos with appealing facilities have a competitive edge in the rental market.

Features that tenants value include:

Swimming pools and gyms
Co-working spaces and function rooms
24-hour security and concierge services
Proximity to convenience stores or supermarkets within the development

The more lifestyle-focused the condo, the easier it is to market to tenants.

4. Unit Size and Layout

Practical, efficient layouts matter. Tenants typically prefer units that maximise space with open-concept designs and adequate storage.

For rental demand:

One- and two-bedroom units are highly popular with singles and couples.
Avoid odd-shaped layouts or units with wasted space, as they can deter tenants even in a good location.

Compact units in prime or fringe areas often rent faster due to affordability and practicality.

5. Developer Reputation and Building Maintenance

Tenants are increasingly mindful of the overall condition and reputation of the property. Well-maintained condos by reputable developers are more attractive and command higher rents.

A clean, modern façade and reliable management also help keep vacancy rates low. Conversely, poorly maintained buildings may struggle to retain tenants despite a good location.

Final Thoughts

A condo with strong rental demand doesn’t happen by chance—it’s the result of smart location choices, thoughtful unit selection, and understanding tenant preferences.

For investors, focusing on these essentials helps secure a property that not only rents out quickly but also retains its value over time. In a competitive rental market, the right condo can make all the difference between mediocre and exceptional returns.