Draycott Eight vs Ardmore Enclave Freeholds: Higher Yield, Lower Tenure—Is the Trade-Off Worth It?
Draycott Eight sits in the Ardmore–Draycott enclave (prime District 10) and, among the five projects compared in this article, it is the only 99-year leasehold development; the other four benchmarks are freehold.
That “tenure mix” matters because rents in this enclave are largely driven by location and the ability to offer genuinely large family-sized layouts, while capital values tend to reflect tenure and scarcity of freehold land. Academic and institutional commentary on Singapore housing markets generally characterises leasehold property as depreciating over time (lease decay), because rights revert to the landowner at lease end; this is a core reason freehold commands a structural premium.
Using the asking prices for Draycott Eight’s ~2,896–2,906 sq ft 4-bedders and the most recent observable rental evidence for comparable 4-bedroom sizes in the same micro-market, the key numbers come out clearly:
Draycott Eight’s representative gross rental yield is ~2.7%–3.3% at current rents, which is meaningfully higher than nearby freehold benchmarks that cluster around ~1.6%–2.0% for similarly “luxury-family” sized units.
The higher yield at Draycott Eight effectively reflects a risk premium—compensation for taking on leasehold tenure. Over longer holding periods, lease decay increasingly weighs on resale values. In addition, financing dynamics can become more restrictive: as the remaining lease shortens, loan tenures may be curtailed if the lease cannot adequately cover the buyer’s age, which, in turn, can dampen demand.
Data sources and how yield is computed
This article combines two data layers:
Current-ish sale pricing and rental evidence taken from PropNex’s Property Analysis tables (sale caveats and rental contracts extracted from URA). These are used to build a comparable “rent + price” snapshot for each project.
Yield definition used throughout:
Gross rental yield = (Monthly rent × 12) ÷ Purchase price.
This is intentionally “gross.” Real-world net yield will be lower after maintenance fees, potential vacancy, agent fees, and taxes. IRAS notes that net rental income after allowable expenses is subject to income tax, and distinguishes property tax from income tax.
Draycott Eight as the Investment Focus
What you are buying
Draycott Eight is a 99-year leasehold development in District 10 with 136 units, vacant possession in 2006, and 4-bedroom types ranging from 2,896 to 3,272 sq ft (plus a 4-bedroom penthouse) with the lease commencing from 24 October 1997.
For the currently available units on the market (tower simplex stacks of approximately 2,896–2,906 sq ft), the asking prices are as follows as of 20 March 2026:
- #03-05 (2,896 sq ft): $6,320,520 (~$2,183 psf)
- #04-05 (2,896 sq ft): $6,385,680 (~$2,205 psf)
- #12-05 (2,906 sq ft): $6,865,425 (~$2,363 psf)
- #13-05 (2,906 sq ft): $7,065,810 (~$2,431 psf)
- #15-05 (2,906 sq ft): $7,061,580 (~$2,430 psf)
These psf levels are informative because the recent 4-bedroom sale caveats show Draycott Eight 2,863–2,896 sq ft transacting around the low-$2,000s psf in 2025 (e.g., 2,896 sq ft sold at $6.0M in Sep 2025 and $6.2M in Nov 2025)
Current rental reality for Draycott Eight 4-bedroom
Rental contracts for 4-bedroom sizes in the 2,800–3,000 sq ft band show a wide but clear market, including:
- $17,300/month for a 4-bed in the 2,900–3,000 sq ft band (Feb 2026)
- $19,000–$19,500/month for 4-beds in the 2,800–3,000 sq ft band (Jan 2026)
- High-water marks in 2025, including $22,000/month for a 4-bed in the 2,900–3,000 sq ft band (Jul 2025)
What the yield looks like on the current 4-bedroom asking prices
Using a conservative anchor of $17,300/month (Feb 2026 transacted rent for a 2,900–3,000 sq ft 4-bed band at Draycott Eight), the implied gross yields for the asking units are:
| Unit | Size (sq ft) | Asking price | Asking psf | Gross yield @ $17,300/mo |
| #03-05 | 2,896 | $6,320,520 | $2,183 | 3.28% |
| #04-05 | 2,896 | $6,385,680 | $2,205 | 3.25% |
| #12-05 | 2,906 | $6,865,425 | $2,363 | 3.02% |
| #13-05 | 2,906 | $7,065,810 | $2,431 | 2.94% |
| #15-05 | 2,906 | $7,061,580 | $2,430 | 2.94% |
Interpreting this: in the Ardmore–Draycott micro-market, ~3% gross yield on a prime family-sized condo is relatively strong, and it is primarily enabled by Draycott Eight’s leasehold entry price rather than unusually high rent versus neighbours.
Nearby prime benchmarks with 4-bedroom units
To answer “Is Draycott Eight a good buy?” we need to understand what we would be paying (and earning in rent) if we insisted on freehold tenure nearby.
The Arc at Draycott
The Arc at Draycott is a freehold development comprising 58 units, completed in 2010, with 4-bedroom units sized at approximately 2,228 sq ft.
A key nuance to note is that recent sale caveats are largely for smaller units; however, there are recorded rental contracts for 4-bedroom units:
- $9,500/month for a 4-bed in the 2,200–2,300 sq ft band (Jan 2026).
On the sales side, there is no recent 4-bedroom transaction to reference directly, so an estimate is required for a like-for-like yield comparison. The latest transaction reflects a 1,432 sq ft unit at $2,794 psf (Jan 2026). Applying this psf to a 2,228 sq ft 4-bedroom implies a value of roughtly $6.2M—this serves as an indicative benchmark rather than an actual 4-bedroom transaction.
At $9,500/month rent, that implies a gross yield around ~1.7%–1.9%, depending on where the 4-bed actually clears. The strategic takeaway is robust even if the exact number shifts: The Arc gives you freehold tenure in the same neighbourhood, but yield is structurally lower than Draycott Eight.
The Draycott
The Draycott is a freehold development comprising 132 units, completed in 1980.
As there are no 4-bedroom units available, 3-bedroom units are used as the comparison benchmark. Recent transactions have been approximately $5.8 million.
Rental contracts indicate the following range:
- $8,000/month (Feb 2026)
- $11,000/month (Dec 2025)
This translates to an estimated gross yield of around 1.6% to 2.2% at the $5.8M price point. In essence, while The Draycott offers freehold tenure, the “legacy” premium is reflected in lower yields, alongside the consideration that the development is significantly older (1980 vintage).
The Claymore
The Claymore is a freehold development comprising 146 units, completed in 1985, with 4-bedroom units ranging from approximately 3,348 to 4,919 sq ft.
Transactions for 4-bedroom units are scarce, with only a 3,348 sq ft unit recorded at $11.38M (~$3,399 psf) in March 2025.
On rent, PropNex’s Property Analysis table shows 4-bedroom contracts, such as:
- $16,000/month for a 4-bed in the 3,300–3,400 sq ft band (Dec 2025)
- $19,500/month for a 4-bed in the 3,300–3,400 sq ft band (Aug 2025)
At these numbers, gross yield is about ~1.7%–2.0%—again, structurally below Draycott Eight.
Ardmore Park
Ardmore Park is a freehold development comprising 330 units, completed in 2001, with typical 4-bedroom units sized at approximately 2,885 sq ft.
Recent caveats show 4-bedroom 2,885 sq ft units transacting around:
- $12.5M (~$4,333 psf) in Oct 2025
- $12.7M (~$4,402 psf) in Oct 2024
And rents for 4-bedroom units in the same size band show strong demand:
- $18,800–$20,500/month range in Feb 2026 for 4-beds in the 2,800–2,900 sq ft band
This points to gross yields around ~1.8%–2.0% at current pricing—prestige freehold, lower yield, higher capital outlay.
Comparative analysis of rent, price, and yield
Summary table of the “family-sized” market reality
The table below uses a representative recent rent and price reference for each project, prioritising URA transaction evidence where available. Where a direct 4-bed sale caveat is not visible (e.g., The Arc at Draycott), the price is inferred from the latest transacted psf for the project and should be read as a valuation proxy, not a recorded 4-bed transacted price.
| Project | Tenure | Built / TOP | Units | Size used | Recent rent used | Price reference used | Implied gross yield |
| Draycott Eight | 99-year leasehold | 2006 | 136 | 2,896 sq ft | $17,300/mo | $6.32M (asking example) | ~3.28% |
| The Arc at Draycott | Freehold | 2010 | 58 | 2,228 sq ft | $9,500/mo | ~ $6.2M (inferred) | ~1.8% |
| The Draycott (3-bed proxy) | Freehold | 1980 | 132 | 2,637 sq ft | $8,000/mo | $5.8M (Jan 2026 caveat) | ~1.7% |
| The Claymore | Freehold | 1985 | 146 | 3,348 sq ft | $16,000/mo | $11.38M (Mar 2025 caveat) | ~1.7% |
| Ardmore Park | Freehold | 2001 | 330 | 2,885 sq ft | $20,000/mo | $12.5M (Oct 2025 caveat) | ~1.9% |
What this means for a Draycott Eight buyer
Draycott Eight’s “value proposition” is not that it has the highest rent. Ardmore Park, for example, often clears $18k–$21k/month.
The difference is the capital denominator:
- Draycott Eight 4-bed (~2,900 sq ft) is trading and being marketed around the low-$2,000s psf and $6M–$7M
- The freehold “status address” benchmark (Ardmore Park) is transacting around $4,000+ psf and $12M+ for 2,885 sq ft 4-bedders.
So, the same neighborhood lifestyle and broadly similar rent bands can cost ~2× the capital if you insist on freehold—and that is exactly why yields compress for freehold buyers.
This also provides useful context for the asking prices at Draycott Eight: compared to 2025 4-bedroom transactions in the ~$2,026–$2,200 psf range, the #03-05 and #04-05 units are broadly aligned with market levels. In contrast, units priced at ~$2,360–$2,430 psf reflect a clear premium, likely attributable to higher floors, unblocked views, and superior unit conditions.
Who Draycott Eight is suitable for, and when it is a good buy
Draycott Eight is best understood as a prime-location, large-layout play where the market’s leasehold discount can be an advantage—if your goals match it.
It tends to suit a homeowner who wants a large family home near Orchard with a “relative value” entry price (compared to freehold neighbours) and is comfortable with a medium-to-long holding period that is not generational. The fact pattern supports this: Draycott Eight offers ~2,900 sq ft in this enclave at $6M–$7M pricing, while the closest freehold alternatives often imply $11M–$13M+ commitments for 4-bedroom living.
It also fits an investor-landlord profile that prioritises cash yield over tenure prestige. In this specific micro-market, Draycott Eight’s gross yield math (~3%) is clearly superior to freehold peers (~1.6%–2.0%) because rents do not fall nearly enough to compensate for the higher freehold capital values.
However, Draycott Eight is less suited for buyers seeking a “legacy” asset to be held across generations with minimal exposure to tenure-related repricing. In Singapore’s housing market, remaining lease plays a material role in value (lease decay), with studies showing a clear relationship between lease length and pricing for leasehold properties. From a practical standpoint, financing also becomes more constrained—loan tenures typically shorten once the remaining lease falls below 60 years, which can affect buyer demand. While Draycott Eight still has a relatively long remaining lease (99 years from 1997), it will inevitably approach key psychological thresholds over time, at which point demand may become increasingly price-sensitive.
From a “good buy” perspective, the simplest, defensible way to frame it is:
A Draycott Eight 4-bed looks compelling when it prices close to the proven caveat band for similar 2,896 sq ft units (low-$2,000s psf) and when your alternative is paying double the capital for freehold prestige while accepting lower yields. It may look less compelling when the pricing approaches the mid-$2,400s psf range without a clear, monetizable differentiator (view, condition, stack) because you are effectively giving back the leasehold “value edge” that supports the whole thesis.
Risks, caveats, and what to verify before you commit
Lease decay is the most important strategic risk. Conceptually, leasehold property is a wasting asset in perpetuity terms, and empirical work on Singapore private housing finds meaningful pricing sensitivity to remaining lease for leasehold stock. You are not just betting on Orchard-area desirability; you are also betting that the market will continue to price “remaining lease” gently over your intended holding window.
Buyer financing constraints are the second key risk. Loan tenures begin to shorten once the remaining lease falls below 60 years, which can affect affordability and demand.
Gross yield is not the same as net yield. Maintenance fees on large-format premium condos, vacancy risks (because the tenant pool for $17k–$20k/month homes is naturally thinner), and taxes all reduce realised returns. IRAS specifically taxes net rental income after allowable expenses, not gross rent, and distinguishes income tax from property tax obligations.
Transaction sample sizes for very large units can be thin. Even with URA-sourced records, some projects show limited recent caveats for the exact unit type (notably The Arc’s 4-bedroom sales), so any single “snapshot yield” should be treated as an indicative range rather than a precise constant.
Disclosure: This post is for educational and analytical purposes. It is not financial advice. Projections are based on the provided ProTrend graph values, our inferred prices and comparability assumption, and indicative prices (accurate as of 20th March 2026). Actual rents, yields, and timelines may differ.
Article contributed by Jerry Wong.
Jerry Wong is a realtor at Propnex Realty, bringing a rich background in interior and lighting design to his work. He loves exploring diverse spaces and observing the transformative power of real estate. Beyond his professional role, Jerry finds his greatest fulfillment in connecting people with the right properties, gaining immense satisfaction from helping clients achieve their dreams.
