What this analysis is trying to answer
Narra Residences is a new launch in District 23 (Dairy Farm / Hillview / Bukit Panjang) with vacant possession expected in Q1 2029. For many homebuyers and investors considering this development, the key question is straightforward:
If you purchase the 3 Bedroom Premium Type C4P (2 bathrooms + WC) at Narra Residences today at around S$2,165,000, will the projected rental income by 2029 provide a competitive rental yield compared to nearby, established condominiums along Petir Road? More importantly, does this suggest that the current purchase price represents a sound investment?
To conduct a meaningful comparison, we benchmark Narra Residences against four nearby developments that share similar family-oriented layouts, comparable unit sizes, and full condominium facilities. These projects are Tree House, Foresque Residences, Eco Sanctuary, and Dairy Farm Residences.
We have excluded The Botany @ Dairy Farm from this analysis as it is still under construction and therefore does not yet provide reliable resale and rental data for comparison.
The unit we’re underwriting
Narra Residences Type C4P fundamentals that matter for rentability
The Type C4P layout is renter-friendly for family tenants because it includes: a living/dining area with balcony, master ensuite, two additional bedrooms, a common bathroom, and (critically for many family renters) a dry kitchen + wet kitchen, WC, household shelter, and yard.
Those “service spaces” (WC + yard + HS + enclosed wet kitchen) tend to appeal to: * families who cook more often, * multigenerational households, * tenants who want household storage, * tenants with a helper arrangement (WC + yard convenience).
This matters because, in the 3-bedroom segment, layout efficiency and family practicality often influence how quickly a unit rents out and whether it can command a small premium.
Price, size, and the harmonised-area adjustment
There are currently two remaining units of the 3 Bedroom Premium Type C4P, each listed at approximately S$2.155M–S$2.165M, with a stated unit size of 1,012 sqft.
However, Narra Residences is a harmonised project, which means certain areas, such as air-conditioning ledges, are treated differently from those in older developments. For the Type C4P, the aircon ledge is estimated at about 60 sq ft. To make a like-for-like comparison with the older nearby developments, we therefore adjust the size to an estimated non-harmonised area of about 1,072 sqft.
This adjustment aligns with Singapore’s floor area harmonisation framework, where strata areas are standardised under GFA calculations, and elements such as aircon ledges are accounted for differently from pre-harmonisation developments.
Using the adjusted comparison size of 1,072 sqft:
-
Entry price (comparison basis) ≈ S$2,165,000 ÷ 1,072 sqft ≈ S$2,020 psf
-
For reference, using the harmonised label size of 1,012 sqft, the price works out to approximately S$2,139 psf
Using the adjusted size provides a more accurate basis for benchmarking Narra Residences against the surrounding resale developments, which were launched before the harmonised standards were implemented.
The comparable set and what it implies about tenant demand
Below is the “identity” of each comparable: age, tenure, and what tenants are really paying for in this micro-market.
Tree House
Tree House, located along Chestnut Avenue, is a 99-year leasehold development completed in 2013 with 429 residential units. The project is known for its green and nature-centric environment, situated close to the Chestnut Nature Park and the Bukit Timah Nature Reserve. Its positioning appeals strongly to tenants who prefer a quieter, nature-adjacent living environment while still being within reach of Bukit Panjang’s amenities.
Foresque Residences
Foresque Residences is a 99-year leasehold development (with effect from 10 January 2011) comprising 496 units, with vacant possession around late-2014 to early-2015. Located near Petir Road, the development shares a similar environment and tenant catchment with the Dairy Farm area. Its proximity to greenery and relatively spacious family-sized units make it attractive to tenants seeking a balance between nature and accessibility.
Eco Sanctuary
Eco Sanctuary is a 99-year leasehold condominium completed in 2016, with 483 units. Positioned close to the Bukit Timah Nature Reserve and the Dairy Farm nature belt, the development caters strongly to nature-loving families who appreciate resort-style facilities while maintaining reasonable connectivity to nearby transport nodes and amenities. Because of this, its tenant profile overlaps closely with what Narra Residences is likely to attract.
Dairy Farm Residences
Dairy Farm Residences is the newest completed development among the comparables, with vacant possession obtained in February 2024. The project is a mixed-use integrated development located at the junction of Petir Road and Dairy Farm Road, offering convenient access to the Bukit Timah Expressway (BKE) and the Downtown Line. In rental benchmarking, Dairy Farm Residences serves as an important reference point, reflecting rental performance for newer residential stock in the immediate Dairy Farm area.
What current rents and yields look like in this micro-market
Because Narra has no rental history (yet), the best predictors are what real tenants are currently paying in the closest comparable developments and what current gross yields look like for those projects.
Recent, real-world 3-bedroom rent benchmarks
Based on PropNex Protrend records of recent rental transactions, which track rental performance by bedroom configuration and unit size bands, we can observe the prevailing rental trends for comparable units in the surrounding developments.
- Tree House (3BR, 1,100–1,300 sqft bands) was renting around S$4,900–S$5,400 in multiple recent instances (e.g., 3BR 1,100–1,200 sqft at ~S$5,200; 3BR 1,200–1,300 sqft at ~S$5,400).
Tree House Past 6 Months Rental Transactions. Source: PropNex Protrend - Eco Sanctuary shows 3BR deals at S$5,600 (3BR 1,100–1,200 sqft band) and S$4,400–S$4,500 (3BR 900–1,000 sqft band), reflecting a broader “family 3BR” rental spectrum based on size and stack attributes.
Eco Sanctuary Past 6 Months Rental Transactions. Source: PropNex Protrend - Dairy Farm Residences shows newer-stock 3BR rental prices of S$5,000–S$5,300 in the 900–1,100 sqft band—consistent with the fact that newer projects here can command higher rent psf.
Dairy Farm Residences. Past 6 Months Rental Transactions. Source: PropNex Protrend -
At Foresque Residences, recent rental transactions for 3-bedroom units within the 1,100–1,200 sq ft size band have ranged from S$4,000 to S$5,100 over the past six months.
The relatively wide rental range is likely influenced by factors such as unit condition, level of furnishing, renovation quality, and floor level, all of which can significantly affect the achievable rent for otherwise similar unit types.
Foresque Residences. Past 6 Months Rental Transactions. Source: PropNex Protrend
The takeaway: “Family-sized 3BR” rents in this area are already clustering around the mid-S$4k to mid-S$5k range, with the newer/stronger-positioned stock pushing higher. That is the base we compound forward to 2029.
Current project-level yield context (Protrend-based summaries)
Using the latest transaction trends from the PropNex ProTrend charts (2025–2026 data points), we can estimate the current indicative rental yields for the comparable developments.
The approach is straightforward:
Gross Yield ≈ (Monthly Rent PSF × 12) ÷ Sale PSF
| Development | Latest Sale Price (PSF) | Latest Rental (PSF / Month) | Estimated Gross Yield |
|---|---|---|---|
| Tree House | ~$1,555 psf (2025) | ~$4.24 psf (2026) | ~3.27% |
| Foresque Residences | ~$1,539 psf (2025) | ~$3.85 psf (2026) | ~3.00% |
| Eco Sanctuary | ~$1,648 psf (2025) | ~$4.63 psf (2026) | ~3.37% |
| Dairy Farm Residences | ~$1,847 psf (2025) | ~$5.01 psf (2026) | ~3.26% |
Key Takeaway
Based on the most recent pricing and rental trends, the Petir Road / Dairy Farm condo cluster currently yields gross rental yields of roughly 3.0% to 3.4%.
Older projects with lower entry prices (like Tree House and Foresque) do not necessarily produce higher yields because their rental psf is also lower, while newer developments such as Dairy Farm Residences command stronger rents but come with higher purchase prices.
This ~3%–3.4% yield range, therefore, serves as a realistic benchmark for evaluating the projected rental yield potential of Narra Residences upon completion in 2029.
How to think about rent growth between now and Q1 2029
Projecting rent isn’t about drawing a straight line. It’s about (a) understanding where the market is in the cycle and (b) understanding future supply risk.
The Singapore rent cycle has shown it can cool
URA’s market statistics (4Q 2025 release) show that private residential rentals fell -0.5% q-o-q in 4Q 2025, and for the full year 2025 rentals rose 1.9%, reversing a -1.9% decline in 2024.
This matters because it highlights a practical point for Narra buyers: even if your long-run rent outlook is positive, rent growth is not guaranteed every year—you should underwrite conservatively.
Future supply is the biggest swing factor into 2029
URA’s pipeline supply annex (as at 4Q 2025) shows substantial expected completions across Singapore: * 2026: 6,955 units total * 2027: 10,021 * 2028: 10,701 * 2029: 13,028 * >2029: 15,981
Large incoming supply is one reason rents can stay range-bound even when demand is stable. For Narra’s 2029 handover, this is a real macro headwind: your “new project” is arriving in a period where many other projects are also completing.
Why can we still project with some structure
URA’s private residential rental index methodology (published on data.gov.sg) states that the index is computed from IRAS tenancy returns and, since 2015-Q1, uses a stratified hedonic regression approach to control for attributes such as unit age and size.
We’re not using the index as a direct “forecast tool” here, but it supports a key principle: age and size matter, so a brand-new 2029 unit may command a modest premium versus older 2013–2016 stock—while still competing against newer nearby stock like Dairy Farm Residences.
Projected 2029 rent and gross yield for Narra Type C4P
Step-by-step underwriting assumptions
We anchor Narra’s 2029 rent psf using three observable facts:
First, the Protrend data show that nearby 3BR rents in 2025–2026 are often in the ~S$4.3k–S$5.3k range, depending on project and exact size band.
Second, the project’s average for the strongest competition (Eco Sanctuary + Dairy Farm) currently sits at ~S$4.9 psf/month.
Third, Narra Type C4P’s layout (wet/dry kitchen + WC + yard + HS) is meaningfully “family-functional”, supporting the case that it should rent closer to the upper half of the local 3BR range—subject to 2029 supply competition.
The math inputs we will use
Purchase price: S$2,165,000 (Type C4P shown up to ~S$2.165M).
Comparison size: 1,072 sqft (our non-harmonised estimate).
Implied price (comparison): ~S$2,020 psf.
Gross yield formula: Gross Yield = (Monthly Rent × 12) / Purchase Price
Scenario forecast table
Because both rents and supply conditions can shift, a scenario approach is more honest than a single-point guess. The table below uses a “local baseline rent psf” based on today’s better comps, then applies modest-to-strong growth, plus a small “new 2029 stock” premium.
| Scenario (for Q1 2029) | Implied Rent (S$ psf / month) | Projected Monthly Rent (1,072 sqft) | Projected Gross Yield (at S$2,165,000) |
| Conservative (slower rent growth, more competition) | ~5.09 | ~S$5,461 | ~3.03% |
| Base case (moderate growth + normal new-unit appeal) | ~5.51 | ~S$5,904 | ~3.27% |
| Upside (stronger rental market, Narra rents like “best-in-class” local) | ~6.00 | ~S$6,433 | ~3.57% |
How to interpret this against today’s comparables: * These 2029 rent psf outcomes sit “one step above” today’s Eco/Dairy Farm averages (~4.9 psf/month) and are directionally consistent with compounding modest growth over ~3 years plus Narra’s brand-new condition.
* They are also consistent with the fact that nearby newer stock is already fetching ~S$5k+ monthly rents for 3BR size bands, meaning Narra does not need an unrealistic rent level to reach ~3.2%+ gross yield.
A useful sensitivity for investors: every S$100/month swing in achieved rent changes gross yield by roughly 0.055% on a S$2.165M asset (S$1,200 annual / S$2.165M).
So, is Narra Type C4P a good buy if the goal is rental yield?
What Looks Positive
The Type C4P layout at Narra Residences has several features that tend to support stable family demand, which is the dominant tenant profile in this part of District 23. The unit includes practical elements such as a wet and dry kitchen configuration, a separate WC, yard, and household shelter, all of which align well with the needs of family tenants who typically stay longer in nature-adjacent developments.
In addition, Narra’s expected completion in 2029 means the units will enter the leasing market as brand-new housing stock. In many cases, newer projects enjoy an advantage in tenant preference, perceived maintenance reliability, and overall appeal compared to older developments completed between 2013 and 2016, such as Tree House, Foresque Residences, and Eco Sanctuary.
The Key Consideration for Yield-Focused Buyers
However, if the investment objective is purely rental yield, it is important to consider what the current market is already delivering.
Recent data indicate that nearby developments are achieving gross yields of about 3.0% to 3.4%. Against this benchmark, the projected base-case yield for Narra’s Type C4P (around the low-3% range) appears competitive but not significantly higher than the prevailing market range.
There are also broader market factors to consider. The rental market can fluctuate from quarter to quarter — for example, URA data showed a slight quarter-on-quarter decline in rents in 4Q 2025. Looking ahead, 2029 is also expected to coincide with a substantial pipeline of new residential completions across Singapore, which could moderate rental growth and limit short-term upside.
Bottom line judgment
On balance, Narra Residences Type C4P can be a “good buy” as a hybrid strategy—a family-sized unit you can hold for own-stay flexibility, with a credible path to ~3.0%–3.6% gross yield upon vacant possession depending on rental-market conditions.
But if you define “good buy” strictly as “best rental yield”, then resale alternatives in the same cluster may match or beat Narra’s likely 2029 yield, because their entry prices are lower while rents don’t fall proportionally with age. The real reason to pay the new-launch premium is typically not yield alone, but a combination of: new lease runway, unit condition, layout/efficiency, and the ability to compete strongly for quality tenants when the project first completes.
(As always: these are gross yields; net yields will be lower after maintenance fees, vacancy periods, agent fees, and property tax—so investors should underwrite with a buffer, especially given the 2026–2029 supply pipeline.
Disclosure: This post is educational and analytical. It is not financial advice. Projections are scenarios based on the provided ProTrend 3BR graph values, our 1072 sqft comparability assumption, and an indicative price of $2,156,000 (as of this article). 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.
