Proximity to schools is one of the many considerations home buyers and investors may have when it comes to selecting their residential property. For families looking to enrol their children into local primary schools, it is a norm to seek properties within a 1- to 2-km radius from their preferred schools to increase their chances of securing a spot (for more details on how this works, refer to: https://www.moe.gov.sg/primary/p1-registration/distance ). Expatriate families with children may consider leasing homes near international schools to avoid incurring additional buyer's stamp duty (ABSD) that comes with the purchase of a residential property (see Table 1).

Table 1: Prevailing ABSD rates for SCs, PRs and Foreigners (NPR)

Source: PropNex Research, IRAS
*Citizens and permanent residents of Iceland, Liechtenstein, Norway, Switzerland and citizens of the USA will receive the same ABSD treatment as Singapore Citizens under the respective Free Trade Agreements.

Previously, PropNex Research had evaluated the resale performance of condominium projects near international schools. For the second part of this two-part series, we will be assessing the rental performance of such projects in 2023.

Our curated study - tapping on an analysis of transactions via the PropNex Investment Suite - looked at the average rental PSF prices of condo projects that are within the same district and within a 1-km radius from a selection of popular international schools. The projects' average monthly PSF rents are then compared with the average monthly rent of the respective districts to derive the percentage gain in rental prices.

It was found that in 2023, condo projects located near Dulwich College (Singapore) in Bukit Batok, United World College of South East Asia (East Campus) in Tampines, and Nexus International School (Singapore) in Aljunied posted the highest gains in monthly PSF rental rates - ranging from 5.5% to 29.2% over their respective district average rents (see Table 2).

It is worth noting, however, that there was only one project (Le Quest) that is in the same district and within 1-km of Dulwich College. In 2023, the 119 rental transactions at Le Quest had an average rental unit price of $6.00 psf per month, which was 29.2% higher than District 23's average monthly rent at $4.25 psf.

Meanwhile, private homes near UWCSEA (East Campus) saw the second highest gain as per our study. The four condo projects recorded 468 rental transactions in 2023 which reflected a 16.2% gain in average monthly PSF rent over that of District 18.

Table 2: Top 5 Gainers - Average Monthly Rental $PSF of Condo Projects Near International Schools in 2023

Source: PropNex Reseach, PropNex Investment Suite, URA Realis

Source: Dulwich College (Singapore)

Location: Bukit Batok West Avenue 8
Established: 2014
Enrolment: 2,890
Curriculum: DUCKS Kindergarten (ages 2-7); Junior School (ages 7-11); Senior School (ages 12-18); IGCSE/GCSE and IB Diploma or IB Career Related Pathway)
Nearest MRT: Bukit Batok (1.7km), Bukit Gombak (1.8km); at the doorstep of upcoming Tengah Park MRT station

There was only one condo project - Le Quest - that fits the study parameters of being in the same district and being 1-km from the school. Le Quest is a 99-year leasehold mixed-use development by Qingjian Realty that was completed in 2020. It comprises 516 units across five residential towers and a unit mix ranging from studio apartments to 4-bedroom units. Le Quest saw 119 rental transactions in 2023, with an average monthly rental of $6.00 psf.

Of the 119 transactions, it was found that 1-bedroom units between 400 and 500 sq ft are the most popular among tenants, with 42 rental transactions done in 2023. The rentals of these 42 transactions range from $4.56 psf to $8.44 psf per month. With a wide range of facilities and the Le Quest Mall at their doorstep, residents need not venture far for their daily activities and necessities. Bukit Batok and Bukit Gombak MRT stations are not far from the project, providing easy access to the city via the North-South line.

Other factors that could have supported rentals, include Le Quest's proximity to the Pan Island Expressway (PIE) and other major roads, as well as employment hubs in Jurong East and industrial areas in Bukit Batok and Boon Lay Way . It is also near to the future Tengah Park MRT station on the Jurong Region Line, and the up-and-coming Tengah new town.

Source: PropNex Reseach, PropNex Investment Suite, URA Realis

Source: Google StreetView

Location: Tampines Street 73
Established: 2008
Enrolment: 2,843 (as at 2023)
Curriculum: UWCSEA's own curriculum (K1 to G10 ages 5-16), IB DP (G11 to 12 ages 16-17)
Nearest MRT: Tampines (1.50km), Tampines West (1.72km)

Four condo projects were placed in the same district and within 1-km from UWCSEA. They comprise The Tapestry, The Alps Residences, The Santorini, and Q Bay Residences, all of which are located along Tampines Avenue 10, and a short distance from the Tampines West MRT station on the Downtown Line (DTL), and the Tampines MRT interchange station (DTL and East-West Line). The 468 rental contracts from the four projects recorded an average PSF rental of $5.42 per month, about 16% higher than the district average.

The Tapestry had the highest number of rental transactions, with 163 tenancy contracts inked in 2023 at an average monthly rent of $6.10 psf. The Tapestry is also the largest (861 units) and newest (TOP: 2021) of the four condo developments, which may have attracted more potential tenants. Meanwhile, The Alps Residences, Q Bay Residences, and The Santorini saw 130, 102 and 73 rental transactions respectively in 2023.

All four projects feature a similar unit mix of 1- to 5-bedroom units and penthouses and are all larger developments with total number of units ranging from 597 (The Santorini) to 861 (The Tapestry). Across the four projects, the most popular unit types among tenants are 1- and 2-bedroom units that are sized between 400 and 700 sq ft.

Source: PropNex Reseach, PropNex Investment Suite, URA Realis

Source: Nexus International School (Singapore)

Location: Aljunied Walk
Established: 2011
Enrolment: estimated at 1,200
Curriculum: Nexus Early Years (ages 3-5); IB Primary Years Programme (ages 5-11); Secondary School IGCSE (ages 11-16); IB Diploma (ages 16-18)
Nearest MRT: Mattar (733m), Geylang Bahru (755m), Aljunied (782m)

Nexus International School came in third with 50 condo projects in the same district and within 1 km contributing to the rental activity in 2023. The 50 projects had a total of 913 rental transactions in 2023, with the average rent coming in at $6.11 psf per month - 11.0% higher than District 14's average at $5.44 psf per month.

Sims Urban Oasis, The Antares, and Tre Residences were the top three projects in terms of the number of rental transactions done in 2023, accounting for nearly half of the 913 transactions collectively (450). In particular, Sims Urban Oasis had a significantly higher number of rental contracts inked at 294 transactions in 2023, compared with The Antares and Tre Residences which saw 105 and 51 rental transactions, respectively.

The most popular unit types among tenants across the three projects in 2023 were 1- to 3-bedroom units. There were 129 and 17 rental transactions for such units (sizes ranging from 400 to 500 sq ft) in Sims Urban Oasis and Tre Residences, respectively. Meanwhile, 1- to 3-bedroom units spanning between 600 and 700 sq ft made up the largest proportion in terms of rental contracts (65) at The Antares.

Overall, with a total of 1,024 units in the development, Sims Urban Oasis is likely the largest of the 50 projects studied as most of these projects are boutique condos with around 100 units or less. Therefore, it is not surprising that Sims Urban Oasis had clocked a substantial number of rental deals.

Source: PropNex Reseach, PropNex Investment Suite, URA Realis

Source: Hwa Chong International School

Location: Bukit Timah Road
Established: 2005
Enrolment: More than 900
Curriculum: 6-year Integrated IB Programme leading to IB Diploma (ages 13-18)
Nearest MRT: Tan Kah Kee (473m), Sixth Avenue (824m)

There are 28 projects with rental transactions identified in the same district and within 1 km of Hwa Chong International School in 2023. These condos projects yielded 567 rental transactions for the whole of 2023 at an average monthly rent of $6.17 psf, outperforming the average rentals in District 10 by 10.5%.

The three most popular projects in 2023 were Fourth Avenue Residences, Royalgreen, and Astrid Meadows. Fourth Avenue Residences accounted for 235 rental transactions, making up 41.4% of the total count (567). In terms of development size and completion date, Fourth Avenue Residences is the largest and the newest of the three, with 476 units having attained TOP in 2022. It is also located less than 60m away from Sixth Avenue MRT station on the DTL, as compared with Royalgreen and Astrid Meadows, which are 307m from the Sixth Avenue MRT station and 810m from the Holland Village MRT station on the CCL, respectively.

Source: PropNex Reseach, PropNex Investment Suite, URA Realis

Source: EtonHouse Orchard (Singapore)

Location: Tanglin Road
Established: 2018
Enrolment: 250
Curriculum: IB Primary Years Programme (ages 5-11), EtonHouse curriculum with IGCSE (11-16) and International A-Levels (ages 16-18)
Nearest MRT: Orchard Boulevard (510m), Napier (800m)

EtonHouse Orchard had 142 condo projects with rental transactions in 2023 that fall within the distance parameters of this study. A total of 1,873 rental contracts were signed in 2023 at the average rent of $5.84 psf per month, reflecting a 5.5% gain over the average rent in the district.

Among the 142 condos, Regency Park, Spring Grove, and Ardmore Park topped the charts in terms of rental transaction volume, with the former two sharing the number one spot at 94 transactions each. All three condo projects are older developments that have obtained TOP at least 23 years ago, and feature larger unit sizes of 1,300 sq ft and above.

The proximity to MRT stations (Orchard Boulevard station, and the Orchard interchange station) as well as easy access to a wide range of commercial offerings along Orchard Road have likely propped up demand for homes in the area. The Thomson-East Coast Line which began operations in November 2022 has also given the already-bustling neighbourhood an additional boost in connectivity and convenience.

Source: PropNex Reseach, PropNex Investment Suite, URA Realis

Overall the rental performance, home prices, and capital gain potential are influenced by multiple factors. The proximity to schools (international, or otherwise) is but one variable. Other key drivers include the number of new condo completions in the area, demand and supply dynamics, prevailing market conditions, global economic outlook, and housing policies.

With Singapore pushing to transform its economy, by growing emerging sectors such as agritech, sustainable energy, digital and technology, and advanced manufacturing, there may be an increase in the pool of global talent working in the country who will require housing. These professionals may consider purchasing a private home, or lease a residential unit during their stay here, with many possibly leaning towards the latter in view of the 60% ABSD rate for foreigners when they buy a residential property here.

If you are keen to rent a home near to an international school, do connect with any of the PropNex agents to find out more about the options available.