Why Lentor Gardens Residences Deserve a Closer Rental Yield Analysis
The Lentor precinct has quickly become one of Singapore’s most closely watched new residential districts. Since the launch of Lentor Modern in 2022, multiple new developments have entered the market, transforming what was once a quieter landed neighbourhood into a new private residential enclave centred around Lentor MRT Station.
With indicative launch prices for Lentor Gardens Residences now available, investors are naturally asking whether the project can deliver attractive rental yields in the future. This question is especially relevant because Lentor Modern has recently obtained TOP, giving buyers a useful live benchmark through actual sale and rental transactions.
Instead of relying solely on projections, this analysis compares Lentor Gardens Residences with Lentor Modern while accounting for key differences between the two projects, including MRT proximity, integrated retail access, harmonised floor areas, and layout efficiency.
Why We Use Lentor Modern As The Rental Benchmark
Lentor Modern is the most relevant reference point because it is located within the same Lentor precinct and targets a similar tenant pool. Both projects benefit from the Thomson-East Coast Line, nearby nature parks, future neighbourhood growth and the wider transformation of the Lentor estate.
However, Lentor Modern has a clear locational advantage. It is an integrated development with direct access to Lentor MRT Station and a retail mall below the residences. This gives tenants immediate access to groceries, dining, childcare, and daily conveniences without leaving the development.
Lentor Gardens Residences, on the other hand, is located around 500 metres from Lentor MRT Station. While this remains a walkable distance and residents will still benefit from the amenities at Lentor Modern Mall, it does not offer the same direct station-and-mall convenience. For this reason, Lentor Modern is likely to command a rental premium over Lentor Gardens Residences.
Harmonised Versus Non-Harmonised Floor Areas
One important point investors should note is that Lentor Modern is a non-harmonised project, whereas Lentor Gardens Residences is subject to the newer harmonised floor area rules.
This means the stated unit sizes should not be compared too directly. Under the harmonised measurement framework, air-conditioner ledges and certain non-usable spaces are excluded from the strata area. As a result, a Lentor Gardens Residences unit may appear smaller on paper even if its usable internal space is more comparable to a larger non-harmonised unit at Lentor Modern.
This is important when comparing price per square foot and rental psf. A simple sqft-to-sqft comparison may understate the efficiency of Lentor Gardens Residences.
Layout Differences Between Lentor Gardens Residences and Lentor Modern
Another key difference is layout flexibility. Lentor Modern offers Flex Room configurations in all of its 2-bedroom, 3-bedroom and 4-bedroom layouts. These flex spaces can be used as a study, walk-in wardrobe, storage room, small guest area or work-from-home corner.
This flexibility is attractive to tenants, especially professionals and families who value an additional usable room. Lentor Gardens Residences also has selected study layouts, but its comparable unit types generally do not offer the same flex-room advantage across the board.
From a rental perspective, this means Lentor Modern may continue to appeal more strongly to tenants who prioritise functional flexibility. Lentor Gardens Residences may need to compete through entry price, newer supply and access to the broader Lentor ecosystem.
Current Rental Market at Lentor Modern
Because Lentor Modern has recently obtained TOP, early rental transactions provide a valuable indication of what tenants are prepared to pay in the Lentor precinct.
These rents indicate that the Lentor area can attract meaningful tenant demand despite being a relatively new private residential cluster. The presence of Lentor MRT, the Thomson-East Coast Line and the integrated amenities at Lentor Modern help support the rental market.
However, investors should be careful not to underwrite future rents based only on the highest asking prices. Actual transacted rents are usually a better guide than optimistic listings, especially when a newly completed project enters the leasing market, and multiple landlords compete for tenants at the same time.
Estimated Rental Yield for Lentor Gardens Residences
Using Lentor Modern’s early rental performance as a benchmark, Lentor Gardens Residences is likely to achieve slightly lower absolute rents because it does not have the same integrated MRT-and-mall advantage. However, its indicative launch prices may still allow selected unit types to produce competitive gross yields.
| Unit Type | Indicative Price | Estimated Monthly Rent | Estimated Gross Yield |
|---|---|---|---|
| 2 Bedroom | S$1.5xM–1.6xM | S$3,800–4,000 | ~3.0% |
| 2 Bedroom Premium | S$1.4xM–1.6xM | S$3,800–4,100 | ~3.1–3.2% |
| 2 Bedroom + Study | S$1.6xM–1.8xM | S$4,000–4,300 | ~2.9–3.0% |
| 3 Bedroom Compact | S$1.8xM–2.2xM | S$4,800–5,200 | ~3.0% |
| 3 Bedroom Premium | S$2.1xM–2.4xM | S$5,100–5,600 | ~2.8–2.9% |
| 4 Bedroom | S$2.6xM–3.3xM | S$6,300–7,000 | ~2.6–2.8% |
Based on these estimates, the likely gross yield range for Lentor Gardens Residences is around the high-2% to low-3% range. This is broadly in line with what investors may expect from newer mass-market private condominiums in Singapore.
Why the 2 Bedroom Premium Units Stand Out
The 2 Bedroom Premium units appear to offer one of the strongest investment propositions within Lentor Gardens Residences.
Their lower entry quantum makes them more accessible to investors, while the tenant pool remains broad. These units should appeal to young professionals, couples, small households, and tenants who want to live near an MRT station without paying the highest rents in an integrated development.
If purchased near the lower end of the indicative price range, the 2 Bedroom Premium units could potentially achieve gross rental yields above 3%. This makes them one of the more attractive options for buyers prioritising rental income.
Why the 3 Bedroom Compact Units Could Also Perform Well
The 3 Bedroom Compact units are another segment worth watching closely. These units offer a better balance between family functionality and a manageable quantum, which could appeal to tenants who need more space than a 2-bedroom unit but do not want to pay the higher premium of a larger 3-bedroom layout.
For investors, the key appeal lies in the wider tenant base. Families, expatriate households and dual-income professionals may all consider compact 3-bedroom units if the layout is efficient and the rent remains competitive against Lentor Modern.
If Lentor Gardens Residences launches these units at attractive prices, the 3 Bedroom Compact category may offer one of the better combinations of rental yield, tenant demand and future resale liquidity.
Why 4 Bedroom Units May Be Less Yield-Focused
The 4 Bedroom units are likely to appeal more to owner-occupiers than to pure rental-yield investors.
While larger units can command higher absolute rents, their purchase prices are also significantly higher. As a result, rental yield usually compresses as unit size increases. The tenant pool for 4-bedroom units is also narrower because fewer households are prepared to pay premium rents for larger apartments outside the central region.
This does not mean the 4 Bedroom units are unattractive. They may still appeal to families seeking long-term own-stay value and future capital appreciation. However, for buyers focused mainly on rental yield, the smaller and mid-sized units are likely to be more efficient.
Future Supply and Competition in Lentor
One of the main risks for investors is future supply. Lentor has seen several new launches within a short period, and more completed units will enter the rental market over the next few years.
In the short term, this could create competition among landlords, especially when multiple projects reach TOP around the same period. Tenants may have more choices, and landlords may need to set realistic rents to secure occupancy.
Over the longer term, however, the growth of the Lentor precinct could help absorb this supply. As more residents move into the area, retail activity improves, amenities mature, and the estate becomes more established. The Thomson-East Coast Line also strengthens Lentor’s appeal by connecting residents to key destinations such as Orchard, Stevens, Caldecott, Marina Bay and the CBD.
Investment Risks to Consider
Investors should approach Lentor Gardens Residences with realistic expectations. The project is unlikely to outperform Lentor Modern in absolute rent because Lentor Modern offers stronger convenience, direct MRT access, and integrated retail amenities.
Rental competition may also be intense during the early years after TOP as several Lentor projects compete for tenants. If many landlords list their units at the same time, rental growth could be slower than expected.
Interest rates, mortgage costs, property tax, maintenance fees and vacancy periods should also be factored into any investment calculation. The gross yield figures in this analysis do not represent net yield after expenses.
Final Verdict: Is Lentor Gardens Residences a Good Investment?
Lentor Gardens Residences can be a good investment, but only if buyers are selective with their unit choice and entry price.
It is unlikely to command the same rental premium as Lentor Modern because it is not directly integrated with the MRT station and retail mall. However, it benefits from the same growing Lentor ecosystem and may offer more attractive entry pricing for investors who want exposure to the precinct.
The strongest rental-yield opportunities are likely to come from the 2 Bedroom Premium and 3 Bedroom Compact layouts. These unit types offer a better balance of affordability, tenant demand and rental efficiency.
As such, Lentor Gardens Residences may not be the highest-rent project in Lentor, but it could become one of the more compelling entry-yield plays if buyers secure the right unit at the right price.
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.
