District 2 (Anson, Tanjong Pagar, Chinatown) delivers gross rental yields of 2.5–3.5% — modest by OCR standards but underpinned by the deepest tenant base in Singapore: CBD banking professionals, diplomats, regional expats. One Bernam ($2,587 psf, 357 transactions) leads on liquidity; Wallich Residence ($3,369 psf) anchors the luxury ceiling. Greater Southern Waterfront port relocation and Maxwell TEL station open a rare medium-term upside window in an otherwise fully-priced district.
District 2 is the address that requires no explanation to a relocation agent. Anson Road, Tanjong Pagar Road, Cecil Street, Neil Road — these names sit in the mental map of every HR professional arranging a Singapore posting for a banking or legal hire. The tenant base is structurally different from any other CCR district: it is dominated by working professionals in the financial district, not the lifestyle or lifestyle-adjacent expat cohort that fills Orchard, Tanglin, or Buona Vista. That distinction matters for investors.
A 2BR unit in D2 rents to a vice-president at a European bank, a regional director at a commodity house, a diplomat from one of the embassies clustered near Tanjong Pagar Plaza, or a Singapore Permanent Resident who commutes on foot to Raffles Place or Tanjong Pagar MRT. These are tenants with stable housing budgets, 12-to-24-month lease commitments, corporate relocation packages, and low vacancy-generating churn. The average listing-to-lease time for a well-maintained 2BR in D2 is consistently among the shortest in the private residential market.
The trade-off for investors is the entry price. D2 is deep Core Central Region. Wallich Residence transacts at S$3,369 psf; TMW Maxwell at S$3,348 psf; Newport Residences at S$3,128 psf. Even the most accessible liquidity champion — One Bernam at S$2,587 psf — requires a capital outlay that means gross yields of 2.5–3.5% produce a net carry that is rarely cash-positive at today's mortgage rates without a substantial equity contribution. Investors buying here are making a capital-preservation and rental-income-stability argument, not a yield-maximisation argument. Understanding that distinction is prerequisite to evaluating D2 as part of an investment portfolio.
Greater Southern Waterfront (GSW) is the structural medium-term catalyst for D2 and its immediate neighbours (D1, D4). Singapore announced that the Tanjong Pagar port will cease operations and vacate by 2027, unlocking approximately 2,000 hectares of waterfront land stretching from Pasir Panjang to Marina South. The rezoning of this land — for mixed residential, commercial, and public uses — is the largest urban transformation project in Singapore's planning history since Marina Bay. D2 sits at the northern anchor of this corridor. Properties along Anson Road and Tanjong Pagar Road are the existing private residential stock closest to the future GSW development zone.
The shorter-term catalyst is the Maxwell MRT station on the Thomson-East Coast Line (TEL), operational since November 2022. Maxwell station exits put TMW Maxwell and adjacent projects within a 3–5 minute covered walk — meaningful in Singapore's climate and relevant to tenants who do not own cars. TEL connects directly to Orchard, Newton, and will eventually link to Woodlands and East Coast, significantly expanding D2's transit catchment. The rail network effect compounds the existing EWL Tanjong Pagar station coverage.
Newport Residences, the redevelopment of the former Frasers Tower Hotel site by City Developments, is the most significant new residential supply event in D2 in recent years. At S$3,128 psf on 256 units, it directly resets the price ceiling for the Anson submarket and will serve as the benchmark for comparison when its units enter the secondary market. Its launch trajectory will be closely watched by existing D2 landlords looking to assess whether rental ceiling has room to move upward.
Rental yield is the rawest measure of cash-flow-to-capital efficiency in any condo purchase. In Singapore, gross yields typically range from 2.5% in the CCR to 4.5% in the OCR, with mass-market one-bedders often at the top of that band. This article ranks condos by recent rental and sales data to surface the highest-yielding options in the selected district — but remember that yield alone does not tell the whole story: liquidity, tenure, and capital appreciation matter too.
Loading chart data...
District 2 (Anson, Tanjong Pagar) is in Singapore's Core Central Region. We ranked all condos in this district by gross rental yield using the latest 24 months of sales data and 12 months of rental data to find the best income-generating properties.
Top Rental Yield Condos in District 2
| Condo | Avg PSF | Avg Price | Avg Rent | Gross Yield | Tenure |
|---|---|---|---|---|---|
| SPOTTISWOODE PARK | $1,029 psf | $1,102,318 | $4,059/mo | 4.4% | 85 yrs lease commencing from 1990 |
| EON SHENTON | $2,084 psf | $1,318,111 | $4,801/mo | 4.4% | 99 yrs lease commencing from 2011 |
| ICON | $1,819 psf | $1,339,953 | $4,661/mo | 4.2% | 99 yrs lease commencing from 2002 |
| ALTEZ | $1,966 psf | $1,814,417 | $6,276/mo | 4.2% | 99 yrs lease commencing from 2008 |
| DORSETT RESIDENCES | $2,273 psf | $1,401,333 | $4,711/mo | 4.0% | 99 yrs lease commencing from 2009 |
| LUMIERE | $1,789 psf | $1,181,650 | $3,930/mo | 4.0% | 99 yrs lease commencing from 2006 |
| CRAIG PLACE | $1,981 psf | $1,297,500 | $4,191/mo | 3.9% | 99 yrs lease commencing from 1997 |
| 76 SHENTON | $1,961 psf | $1,537,320 | $4,904/mo | 3.8% | — |
| SKYSUITES@ANSON | $2,259 psf | $1,383,591 | $4,393/mo | 3.8% | 99 yrs lease commencing from 2008 |
| INTERNATIONAL PLAZA | $1,214 psf | $1,497,867 | $4,665/mo | 3.7% | 99 yrs lease commencing from 1970 |
| SPOTTISWOODE SUITES | $2,375 psf | $1,277,926 | $3,935/mo | 3.7% | Freehold |
| SPOTTISWOODE 18 | $2,305 psf | $1,130,189 | $3,424/mo | 3.6% | Freehold |
| WALLICH RESIDENCE | $3,077 psf | $3,798,486 | $11,495/mo | 3.6% | 99 yrs lease commencing from 2011 |
| THE BEACON | $1,807 psf | $1,846,667 | $5,462/mo | 3.5% | 99 yrs lease commencing from 2004 |
| SPOTTISWOODE RESIDENCES | $2,290 psf | $1,784,631 | $4,868/mo | 3.3% | Freehold |
Investment Considerations
- Gross vs net yield: Deduct maintenance fees (~$300–$800/mo), property tax, and agent commission (1 month) for a realistic net yield.
- Tenant demand: Higher yields often come from smaller units near MRT stations or business hubs — check vacancy rates.
- Capital appreciation: High-yield condos may have lower capital growth; balance yield with appreciation potential.
- Use the ROI Calculator to model your total return including leverage.
- Compare across districts with the District Comparison Tool.
The table below summarises the key D2 projects for yield-focused investors, ranked by estimated gross yield. PSF figures reflect recent transacted data; rents are median asking for 2BR units (approximately 700–900 sqft) as of early 2026.
| Project | Tenure | Avg PSF | 2BR Rent/mo | Gross Yield | Units | Note |
|---|---|---|---|---|---|---|
| Icon | 99-yr (2007) | ~$1,950 | ~$5,200 | ~3.5% | 646 | Older LH, EWL proximity |
| Altez | 99-yr (2013) | ~$2,100 | ~$5,400 | ~3.3% | 280 | Integrated Tanjong Pagar Plaza |
| Spottiswoode 18 | Freehold | ~$2,200 | ~$5,300 | ~3.2% | 351 | Freehold; Outram Park tri-line |
| Sky Everton | Freehold | ~$2,800 | ~$6,500 | ~3.1% | 262 | Freehold; Hill address |
| One Bernam | 99-yr (2022) | $2,587 | ~$5,800 | ~2.9% | 357 | Highest liquidity in D2 |
| Blair Plain Conservation | Freehold | ~$2,600 | ~$5,500 | ~2.8% | Boutique | Conservation shophouse belt |
| Newport Residences | Freehold | $3,128 | ~$6,800 | ~2.8% | 256 | CDL; new benchmark |
| TMW Maxwell | Freehold | $3,348 | ~$7,000 | ~2.7% | 324 | Maxwell TEL integrated |
| Wallich Residence | 99-yr (2017) | $3,369 | ~$7,200 | ~2.7% | 181 | Guoco Tower integrated; super-luxury |
Key insight: yield vs liquidity trade-off. The highest-yield projects in D2 (Icon at ~3.5%, Altez at ~3.3%) are older 99-year leasehold stock with 60–80 years remaining. They deliver better gross returns because their lower PSF base relative to achievable rents is more favourable — but they carry lease-decay risk and will narrow in buyer pool as remaining years decline. One Bernam at ~2.9% gross is the liquidity premium play: 357 transactions is the highest volume in D2, meaning the exit market is more reliable. Wallich Residence and TMW Maxwell are lifestyle/prestige premium properties where the yield calculation is secondary to the tenant profile and address quality.
Yield sensitivity to unit size. Studio and 1BR units (450–600 sqft) in D2 can push gross yields to 3.5–4.0% at current rental rates — but the resale market for shoebox units in CCR is structurally thin, and ABSD policy revisions have squeezed investor appetite for sub-500 sqft units. The 2BR (700–900 sqft) segment offers the best balance of rental demand depth, tenant quality, and resale liquidity in this submarket.
- Assess your yield objective honestly. D2 CCR at 2.5–3.5% gross is not an income play in isolation — it is a capital-preservation strategy with a rental income component. If your target gross yield is above 4%, this is not your district.
- Prioritise One Bernam for liquidity. 357 transactions make exit-planning substantially easier than smaller boutique developments. For investors who may need to exit within 5–10 years, One Bernam's market depth is a meaningful risk-management advantage over Wallich (181 units) or Newport Residences (256 units, no secondary market yet).
- Stress-test carry costs. At 75% LTV on a $2.5M unit: loan $1.875M at 3.5%/25yr ≈ $9,375/month. 2BR rent $5,800–$6,500 does not cover mortgage at this LTV. Minimum 30–40% equity contribution for neutral or positive carry. Run the Cash-on-Cash Return Calculator with realistic vacancy and maintenance assumptions before committing.
- Factor ABSD into net yield. SC 2nd property: 20% ABSD on purchase price. On a $2.5M unit = $500K ABSD cost, amortised over a 10-year hold = ~$50K/yr drag on net returns. This alone reduces effective gross yield by approximately 0.6–0.8pp on a 10-year horizon. PR 2nd property: 30%. Foreigner: 60% — effectively prices most foreign investors out of meaningful net yield.
- Watch GSW rezoning announcements. The Tanjong Pagar port relocation timeline (2027) is confirmed; URA rezoning and GLS tender launches for GSW land parcels will come in stages. D2 properties along Anson Road and Tanjong Pagar corridor stand to benefit most from any premium repricing of adjacent land.
- Check lease for older 99-yr projects. Icon (2007 TOP) has approximately 80 years remaining in 2026; Altez (2013 TOP) approximately 86 years. Both are comfortably within CPF usability and full LTV thresholds today, but the 75-year cliff arrives in 6–14 years depending on your intended hold period. Model exit pricing with an appropriate lease-decay haircut.
Methodology & Sources
This analysis covers full-year 2026 data and refreshes one-time.
Transaction data sourced from URA REALIS.
- Sales data: URA REALIS (past 24 months, min 2 transactions per condo)
- Rental data: URA REALIS (past 12 months, min 2 leases per condo)
- Gross yield = (avg monthly rent × 12) / avg transaction price × 100
Median values used to minimise outlier impact. PSF = price per square foot.
Frequently Asked Questions
What is a good gross rental yield in Singapore?
Why does yield matter more than capital gain?
Should I buy freehold or leasehold for rental yield?
Which D2 condo has the best rental yield?
Icon (~3.5% gross) leads on yield due to its lower PSF base (~$1,950 psf) and consistent rental demand near EWL Tanjong Pagar. Altez (~3.3%) is close behind. However, both are 99-year leasehold with 80–86 years remaining — model lease decay impact on exit price for any hold beyond 10 years. For freehold + yield balance, Spottiswoode 18 (~3.2%) at Outram Park's tri-line interchange is the most defensible option.
What tenant profile does District 2 attract?
D2 is dominated by CBD professionals: banking, legal, professional services, commodity trading, fund management, regional corporate headquarters. Diplomatic community around Tanjong Pagar Plaza. Regional expats on corporate leases. This cohort has stable incomes, 12–24 month lease preferences, lower vacancy rates, and corporate HR departments that handle lease renewals professionally. It is the most creditworthy and lowest-maintenance tenant base in Singapore's private rental market.
How does the Greater Southern Waterfront affect D2 property values?
The Tanjong Pagar port is confirmed to cease operations by 2027, freeing ~2,000 hectares of waterfront land for redevelopment. D2 is the closest existing private residential district to this land. The uplift mechanism is indirect — GSW rezoning and new development will raise the prestige and desirability of the entire southern waterfront corridor, supporting medium-term capital appreciation. However, GSW is a 20–30 year transformation; short-horizon investors (5 years or less) should not bank on GSW capital gains as their primary return thesis.
Is One Bernam the best D2 condo for investors?
One Bernam ($2,587 psf, 357 transactions) is the standout for investors prioritising exit liquidity. It is the most traded project in D2, giving sellers the deepest buyer pool and fastest exit when needed. Gross yield at ~2.9% is slightly below older leasehold stock but materially above luxury super-prime projects. The 99-year lease from 2022 leaves 95 years remaining — no lease-decay concern for any horizon under 20 years. For investors who value reliable exit over maximising yield, it is the most defensible D2 choice.
What ABSD applies to investment purchases in District 2?
As of 2026: Singapore Citizens buying 2nd property = 20% ABSD; 3rd and beyond = 30%. PRs buying 2nd property = 30%. Foreigners = 60% (with limited FTA remissions for nationals of certain countries). At D2 prices ($2.5M–$3.5M+), ABSD is a material cost that must be factored into any yield calculation. On a $3M unit, 20% ABSD = $600K — at $6,000/month rent, that alone takes ~8.3 years of rent just to recover the ABSD cost.
How does Maxwell TEL station affect D2 rental demand?
Maxwell MRT (TEL) has been operational since November 2022 and has materially strengthened rental demand for TMW Maxwell and projects within the immediate catchment. TEL connects directly to Orchard, Newton, Bright Hill, Woodlands, and eventually the East Coast, expanding D2's transit reach beyond EWL (Tanjong Pagar station). Agents report faster lease-up and firmer asking rents for units within comfortable walking distance of Maxwell TEL. Outram Park (EWL/NEL/TEL tri-line interchange) also enhances western D2 connectivity.