Whenever a new launch enters the Bukit Timah market, one of the first questions investors ask is simple:
Can the rental justify today’s launch prices?
With estimated launch prices ranging from approximately $2,800 psf to $3,500 psf, Dunearn House is entering one of Singapore’s most expensive residential districts. While the location beside Sixth Avenue MRT, prestigious schools and the future Turf City transformation undoubtedly support long-term value, investors ultimately need to understand whether the numbers make sense from a rental perspective.
In this article, we estimate the expected rental yields across every unit type at Dunearn House by benchmarking against two of its closest competitors — Royalgreen and Fourth Avenue Residences.
However, unlike many rental comparisons that simply compare rent per square foot, this analysis also accounts for one of the biggest changes affecting new launches today — URA’s Gross Floor Area (GFA) Harmonisation Framework.
Once this is properly considered, the investment story becomes considerably more interesting.
Why Royalgreen And Fourth Avenue Residences Make The Best Comparables
Finding comparable rental projects is just as important as calculating yields.
Royalgreen and Fourth Avenue Residences were selected because both developments sit within the same Bukit Timah micro-market as Dunearn House.
All three developments enjoy similar characteristics:
- Walking distance to Sixth Avenue MRT
- Bukit Timah landed enclave
- Strong school catchment
- Similar expatriate tenant profile
- Similar accessibility towards Orchard, one-north and the CBD
More importantly, both developments have now accumulated sufficient rental transactions to establish a relatively reliable benchmark.
Based on the latest PropNex Investment Suite data:
| Development | 2BR Avg Rental PSF | 3BR Avg Rental PSF | 4BR Avg Rental PSF |
|---|---|---|---|
| Royalgreen | $6.41 | $6.69 | $6.29 |
| Fourth Avenue Residences | $6.88 | $6.93 | $6.74 |
These figures provide a strong indication of what tenants are currently prepared to pay within this neighbourhood.
Why Comparing Rental PSF Isn’t As Straightforward As It Looks
This is where many rental analyses become inaccurate. On paper, it would seem reasonable to simply multiply Dunearn House’s floor area by the rental psf achieved by Royalgreen and Fourth Avenue Residences.
Unfortunately, that comparison isn’t entirely fair. The reason is GFA Harmonisation.
Understanding GFA Harmonisation
Beginning with newer residential projects, URA introduced the GFA Harmonisation Framework. Under this framework, developers no longer include several non-livable spaces within the official strata area.
These include spaces such as:
- Air-conditioner ledges
- Certain void spaces
- Other excluded construction areas
As a result, the published floor area of newer developments appears smaller than that of older developments. However, buyers are not actually getting significantly less usable living space. Instead, the stated floor area has become a more accurate reflection of the home’s usable internal area.
Why This Changes The Rental Analysis
This distinction becomes extremely important. Royalgreen and Fourth Avenue Residences were launched before GFA Harmonisation. Their advertised floor areas include air-con ledges and other ancillary spaces that tenants cannot actually use.
Dunearn House does not.
This means two apartments may both appear to be around 600 sqft on paper, but the Dunearn House apartment actually allocates a larger proportion of that 600 sqft to internal living space.
For example:
Fourth Avenue Residences 2 Bedroom (1 Bathroom): 624 sqft
May include approximately 25–35 sqft of air-con ledge. The actual usable living area could therefore be closer to 580 sq ft.
Dunearn House 2 Bedroom Premium (2 Bathrooms): 614 sqft
Air-conditioner ledges are excluded. The usable internal living space remains close to the full published area. In other words, tenants are renting an even larger liveable space, even though the official floor area appears smaller.
This naturally leads to newer harmonised projects achieving a higher rental psf, even if the monthly rent itself remains similar.
Rather than discounting Dunearn House’s rental psf, we adjust the comparable rental psf upwards by approximately 4–7% to account for differences in measurement methodology. This creates a much fairer comparison.
Revised Estimated Rental Performance
Using the adjusted rental psf benchmarks and the estimated launch prices, the expected gross rental yields are as follows:
| Unit Type | Estimated Monthly Rent | Launch Price | Estimated Gross Yield |
|---|---|---|---|
| 2 Bedroom (527 sqft) | $3,600–3,800 | From $1.475M | 2.93–3.09% |
| 2 Bedroom Premium (614 sqft) | $4,300–4,500 | From $1.80M | 2.87–3.00% |
| 2 Bedroom + Study (657 -678 sqft) | $4,700–4,900 | From $1.87M | 3.02–3.14% |
| 3 Bedroom (872 sqft) | $6,200–6,500 | From $2.597M | 2.87–3.00% |
| 3 Bedroom Flexi (936 sqft) | $6,600–6,900 | From $2.80M | 2.83–2.96% |
| 3 Bedroom + Study (947 -969 sqft) | $6,700–7,000 | From $2.90M | 2.77–2.90% |
| 3 Bedroom Premium (1001 sqft) | $7,100–7,400 | From $3.10M | 2.75–2.86% |
| 4 Bedroom (1184 sqft) | $8,400–8,700 | From $3.588M | 2.81–2.91% |
| 4 Bedroom Premium (1302 -1313 sqft) | $9,300–9,600 | From $4.00M | 2.79–2.88% |
| 4 Bedroom Premium + Study (1378 sqft) | $9,800–10,200 | From $4.30M | 2.73–2.85% |
Which Unit Types Offer The Strongest Investment Potential?
Interestingly, the rankings are not simply determined by size.
The highest rental yields come from the layouts where purchase quantum remains relatively affordable while rental demand remains broad.
2 Bedroom + Study — The Sweet Spot
The standout performer is arguably the 2 Bedroom + Study.
The additional study significantly broadens the potential tenant profile. Hybrid working has become commonplace, and many expatriates now actively look for an extra room that can function as a home office, nursery or guest room. Yet the price premium over the standard 2 Bedroom remains relatively modest.
Projected gross yields of just over 3% place it at the top of the development for rental efficiency.
Standard 2 Bedroom — Lowest Entry Quantum
The standard 527 sqft 2 Bedroom also performs exceptionally well. Its relatively low entry price allows investors to maximise rental yield while keeping overall capital outlay manageable. This layout is likely to appeal to singles and couples working in one-north, the CBD and Orchard Road.
3 Bedroom Layouts — The Balanced Choice
While the 3 Bedroom layouts do not achieve the highest rental yields, they arguably provide the best balance between rental demand and long-term resale liquidity.
Bukit Timah has always been a family-oriented residential district, supported by its concentration of prestigious schools, established landed housing and excellent connectivity.
Families relocating from overseas often prioritise larger living spaces over maximising rental efficiency, making these layouts attractive despite their slightly lower yields.
4 Bedroom Units — Lifestyle First
The 4 Bedroom units generate the highest monthly rents but also require the largest capital commitment. Consequently, their gross rental yields remain slightly compressed.
However, this does not necessarily make them poor investments. These layouts are more likely to attract affluent owner-occupiers than investors, meaning buyers are often purchasing for long-term family occupation rather than purely for rental returns.
Rental Yield Is Only Half The Story
While rental yield provides an important measure of investment performance, it should never be analysed in isolation.
Dunearn House also benefits from several structural demand drivers that support long-term rental resilience:
- Sixth Avenue MRT on the Downtown Line
- Easy access to one-north, Buona Vista, Orchard Road and the CBD
- Proximity to the Bukit Timah education belt, including Nanyang Primary School, Hwa Chong Institution, National Junior College and Methodist Girls’ School
- The future Turf City transformation, which will introduce new homes, parks and amenities over the coming decades
- A modern GFA-harmonised design that provides a higher proportion of usable internal living space compared with older developments
Together, these factors create a diverse tenant pool spanning professionals, expatriates, academics, researchers and families, reducing reliance on any single demand segment.
Verdict: Is Dunearn House Worth Buying?
After analysing the launch pricing, comparing current rental performance at Royalgreen and Fourth Avenue Residences, and adjusting for the impact of GFA Harmonisation, Dunearn House presents a stronger investment case than the headline launch prices may initially suggest.
The development’s GFA-harmonised layouts mean buyers are purchasing a greater proportion of usable living space than in older projects, making direct psf comparisons potentially misleading. When this is factored into the analysis, projected rental yields improve across the board and become more competitive within the Bukit Timah market.
For investors focused primarily on rental returns, the 2 Bedroom + Study stands out as the strongest option, offering the best combination of entry quantum, tenant appeal and projected yield. The standard 2 Bedroom follows closely behind for those seeking the lowest capital outlay.
Buyers looking for a more balanced investment that combines rental income with long-term owner-occupier demand may find the 3 Bedroom and 3 Bedroom Flexi layouts particularly compelling. These units are well positioned to benefit from the enduring appeal of Bukit Timah’s educational institutions and established residential environment.
The larger 4 Bedroom layouts deliver slightly lower rental efficiency but remain attractive for buyers prioritising long-term capital preservation, family living and future resale demand.
Ultimately, Dunearn House is not a project where every unit type offers the same investment proposition. Rather, it rewards careful unit selection. Investors who focus on the most efficient layouts and secure units at the lower end of the launch pricing range are likely to achieve the strongest balance between rental yield and long-term capital appreciation.
Disclaimer: This article represents an independent market analysis based on publicly available information, estimated launch prices, floor plans, and historical rental transactions from comparable developments, including Royalgreen and Fourth Avenue Residences, available at the time of writing. The rental rates, gross rental yields and investment scenarios presented are estimates prepared for illustrative purposes only and should not be interpreted as guarantees of future rental performance or investment returns.
Where relevant, this analysis considers the impact of the Urban Redevelopment Authority’s (URA) Gross Floor Area (GFA) Harmonisation Framework when comparing Dunearn House with older developments. The adjustments made to rental psf and yield projections are based on the author’s professional assessment of differences in usable floor area between harmonised and non-harmonised developments. As there is currently no official industry standard for such adjustments, these assumptions are analytical estimates, and actual market outcomes may vary.
Rental demand, achievable rents, and investment returns are influenced by numerous factors, including, but not limited to, final launch prices, unit selection, floor level, orientation, furnishings, economic conditions, interest rates, future housing supply, tenant preferences, and market conditions upon the project’s completion. Actual rental performance may therefore differ materially from the projections presented.
Readers should conduct their own independent due diligence and seek advice from qualified property professionals, financial advisers, bankers and legal advisers before making any property investment decisions. The author accepts no responsibility or liability for any loss, damage or investment decision arising from reliance on the information contained in this article.
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.
