Which Condo Is Good for Investment in Singapore? 7 Tests Before You Buy (2026)
By David Ho · CEA R027577A · · 4 min read
Which condo is good for investment in Singapore? Not the one with the busiest showflat, and not the one with the boldest brochure. A good investment condo is one that passes seven tests: location, entry price, exit, supply, rent, holding power and fit. Most condos pass some of them. The ones that disappoint investors usually fail one test that nobody checked before buying.
These are the tests we run with clients, built on our L.E.X method (Location, Entry price, eXit). Figures are as at October 2026.
Why "which condo is best" is the wrong question
No condo is a good investment at any price, for every buyer. A city-fringe two-bedroom can suit an investor who wants rent, and be a poor choice for a family that needs space and growth. The same project can be good value at launch and overpriced two years later.
So instead of a list of projects, here are the tests. Apply them to any condo you're considering, new launch or resale.
The 7 tests
| Test | The question | Red flag |
|---|---|---|
| 1. Location | Who wants to live here, and will that still be true in 10 years? | Far from an MRT station, with no major employers or schools nearby |
| 2. Entry price | Is the price per square foot below comparable projects nearby? | Priced above newer projects in the same area |
| 3. Exit | Who buys this unit from you, and why? | A unit type few people want, such as a large layout in a small-unit project |
| 4. Supply | How many new homes will compete with yours when you sell? | Several large launches nearby completing in your exit year |
| 5. Rent | What does a similar unit actually rent for today? | Relying on brochure yields instead of real rents |
| 6. Holding power | Can you pay the instalment at 4% interest, with three months empty? | Needing the rent to cover the instalment |
| 7. Fit | Does it match your goal: growth, income, or a future home? | Buying growth when you need income, or the reverse |
1. Location: who will want to live here?
Transport comes first for most Singapore buyers and tenants. In PropNex's 2026 survey of more than 1,500 HDB owners, 77% named being near an MRT station, bus interchange or transport hub as a significant factor for their next home. Add employment hubs, good schools and amenities within walking distance. Planned transformation areas can help, but only when they're funded and dated, not just drawn on a map.
2. Entry price: are you paying a fair price today?
Compare the price per square foot with similar projects within about a kilometre, both resale and recent launches. A lower entry price gives you a margin of safety if the market softens, and room to profit when it doesn't.
3. Exit: who buys from you?
Before you buy, describe the person you'll sell to. For many suburban condos, that's an HDB upgrader family who needs three bedrooms near a school and an MRT. If you can't describe your buyer, the property is a bet, not an investment. We cover this in why every buyer needs an exit strategy.
4. Supply: what will you compete against?
Look at the launches and completions around the project, especially in the years you might sell or need a tenant. Heavy nearby supply can hold back both rents and resale prices for a few years.
5. Rent: what will a tenant actually pay?
Check recent rental transactions for similar units, not the developer's estimate. As at October 2026, private condos typically yield about 3% to 3.5% a year before costs, and roughly 2% to 2.5% after property tax, maintenance, agent fees and vacancy. These are market estimates, not official figures. Rentability decides whether your unit earns at all.
6. Holding power: can you carry it through a bad year?
If this is your second property, ABSD of 20% applies for Singapore Citizens: $360,000 on a $1,800,000 condo, paid on day one. Your loan is capped at 45% while another housing loan is outstanding, and Seller's Stamp Duty applies if you sell within four years. Test the instalment at 4% interest, with three months of vacancy, and keep six to twelve months of instalments in reserve.
7. Fit: does it serve your goal?
Growth, income and a future home each call for a different condo. Our capital growth vs rental yield guide shows how the right choice changes with your stage of life, under our W.A.T.E.R concept.
New launch or resale for investment?
| New launch | Resale condo | |
|---|---|---|
| Entry price | Early units can be priced below later phases | Can be negotiated against recent transactions |
| Cash flow | Progressive payments; no rent until completion | Rent from the start |
| What you can check | Plans, location and price | Actual rents, actual condition, real transactions |
| Risk | Supply and the market at completion are unknown | Older lease; possible renovation costs |
Neither is better in every case. We review new launches through L.E.X on our new launches page, and compare them with resale options on the same tests.
Deciding with C.L.E.A.R
- Clarity. Your finances, goals, needs and choices: how much you can commit, for how long, and why.
- List options. At least three condos that fit, including resale and post-launch units.
- Evaluate. Run all seven tests on each one, with the same assumptions.
- Align. Check the winner against your family's plans and your other assets.
- Reinforce. Decide your exit and your reserve before you sign.
Frequently asked questions
What makes a condo good for investment in Singapore?
A location tenants and buyers want, a fair entry price, a clear next buyer, limited competing supply when you exit, realistic rent, a loan you can hold at 4% interest, and a fit with your goals. A condo that fails any of these carries more risk than its brochure suggests.
Is a new launch or a resale condo better for investment?
Neither is better in every case. New launches can offer lower early prices and staged payments, but no rent until completion. Resale condos earn rent from the start and let you check real transactions. Compare both on the same tests.
Is a condo still a good investment with 20% ABSD?
It can be, but the ABSD sets a high hurdle: the property must rise by that much before you break even. For a second property, the entry price, the exit and your holding power matter even more. Run the numbers on the full cost, including ABSD and Seller's Stamp Duty, before you commit.
What rental yield should I expect from a Singapore condo?
As at October 2026, private condos typically yield about 3% to 3.5% gross, and about 2% to 2.5% net after costs. Older, larger or less central units can yield more, usually with lower growth. These are indicative market estimates.
What this means for you
There's no single condo that's right for every investor, and no one can honestly promise one. Run any condo you're considering through the seven tests, and walk away from the ones that fail.
If you'd like us to run these tests on the condos you're looking at, we can help you buy with a plan. You can also work out the stamp duties with our stamp duty calculator.
