Analysis of condos near 5 international schools: One area with surprisingly high rental yields

Rental yields near international schools in Singapore are strongest around Singapore American School, where distance to campus matters far more than in areas served by UWC Dover, Tanglin Trust, Dulwich College and Stamford American. Most landlords who search for a property to invest in typically focus their attention on areas with a large catchment of existing renters. In Singapore, the largest proportion of renters comes from professional expatriates who live and work here for prolonged periods of time. Rental demand from these expats and their families has largely been consistent, and barring black swan events like the Covid-19 pandemic, is able to weather through most property market cycles. Purchasing a home here is often out of reach considering the steep 60per cent Additional Buyer’s Stamp Duty (ABSD) for foreigners purchasing residential property here. Moreover, expatriate families with school-going children are also more likely to send their kids to international schools. As a result, small communities of foreigners have emerged in the areas around most international schools. Broadly speaking, proximity to an international school - or any educational institution for that matter — contributes positively to average property values in that area. Last year we took a broad look at some…