Rental yields for condos in Singapore are actually one of the lowest in the world at 3-5%. You can come up with this rate easily by comparing the current market rates for rental versus their selling price.
However, that being said. Is it a bad idea to invest then? Well, here are my perspectives on this issue.
-You can rent out the units straightaway to collect income. However, you might face incredible competition from home owners who have bought their units on the cheap 10-20 years ago.
-Everyone buys the units at the developer's price. However, you have to wait for the unit to be full constructed. Hence, lost of income during that time frame.
-Rental Yield will increase over time as property price increases. It is not surprising for some home owners to get yield as high as 15%.
If you miss the initial launch and if all units are completely sold out. You can always get it from someone else who have bought earlier. This is also known as a sub sale.
#1 Team (April, May, July 2010)
#1 Real Estate Company HSR