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Based on current market conditions for 2-bedroom units in the Lengkong Tujoh area, you can reasonably expect a gross rental yield of 3.2% to 3.8% annually on a S$1.42 million purchase price, translating to approximately S$45,000 to S$54,000 per year in rental income. This yield is competitive for the East region, though slightly lower than mature estates like Bedok or Geylang due to Kembangan's ongoing gentrification and relative newness of recent developments. Actual yields will depend on unit configuration, floor level, and market demand at the time of letting—higher floors and corner units typically command 5–10% rental premiums, which could push your yield toward the 3.8% ceiling.
At approximately S$1,759 per square foot (S$1,420,000 ÷ 807 sqft), Vacanza @ East is positioned at the mid-to-premium end of the Kembangan–Lengkong corridor, where comparable 2-bedroom units in nearby projects typically range from S$1,650 to S$1,850 psf. Developments slightly further south near Geylang Serai trade at S$1,600–S$1,700 psf, whilst projects closer to Kembangan MRT (within 500 metres) command S$1,800–S$1,950 psf. Your unit's 1.06 km distance from Kembangan station positions it at a fair valuation for the micro-location, offering better value than ultra-prime MRT-adjacent stock whilst still benefiting from station proximity for commuting appeal.
As a second residential property, you will be liable for ABSD at 15% on the purchase price of S$1,420,000, equating to approximately S$213,000 in stamp duty alone—a material cost that must be factored into your total acquisition outlay alongside legal fees and agent commissions. This 15% rate applies to all second residential property purchases regardless of price; there is no tiered reduction available at this price point, so you should budget for total transaction costs of around 20–22% of the purchase price including all ancillary charges. For investors considering multiple property acquisitions, this ABSD cost significantly impacts IRR calculations, so it's essential to model whether the rental yield justifies the immediate post-purchase tax burden.
Unfortunately, the lease tenure information is not provided in the available property data; however, as Vacanza @ East is a modern condominium in Lengkong Tujoh, it is almost certainly a 99-year leasehold from date of completion rather than a 999-year or freehold property. If the project was completed within the last 10 years, your remaining lease is likely between 88–99 years, which poses minimal capital appreciation concerns in the near to medium term; however, once a property dips below 80 years of tenure, financing becomes markedly more difficult as banks reduce loan-to-value ratios and some buyers avoid the property entirely. You should verify the exact lease commencement date with the agent or legal counsel before committing, as this directly impacts long-term capital preservation and resale marketability, particularly if you intend to hold beyond 15–20 years.
Whilst 1.06 km (approximately 13 minutes' walk) to Kembangan MRT is convenient, it places Vacanza @ East just outside the ultra-prime 400–500 metre 'walk-to-station' sweet spot where properties command the steepest capital appreciation premiums; however, the location still benefits significantly from the East–West Line connectivity, which is critical for CBD-bound commuters from the eastern corridor. Properties within this 1–1.5 km band from Kembangan typically see steady demand from young professionals and upgraders seeking balance between affordability and transit convenience, supporting stable appreciation of 2–3% annually during normal market cycles. The development's position also insulates it somewhat from competing new supply directly adjacent to the MRT, reducing oversupply risk whilst still capturing the station's accessibility halo effect; this mid-distance positioning is historically resilient during downturns as it attracts pragmatic buyers who value value-for-money over ultra-premium branding.
Vacanza @ East is well-suited to both profiles, though for different reasons. Owner-occupiers will appreciate the 2-bedroom, 2-bathroom layout, which is the sweetspot for young couples and small families seeking an efficient, modern home in an established neighbourhood with good connectivity; the unit's 807 sqft is neither cramped nor excessively large, making it practical for first-time upgraders from HDB flats. For buy-to-let investors, the property's location in a sought-after private neighbourhood, proximity to Kembangan MRT, and relatively stable rental demand from young professionals make it an attractive portfolio addition, albeit with a more modest 3–4% yield than prime central locations; the investment thesis works best if you are acquiring for long-term appreciation and passive income rather than speculative short-term gains.
Assuming a 75% loan-to-value (LTV) ratio on a S$1,420,000 purchase, a buyer would borrow approximately S$1,065,000, which at today's mortgage rates of around 4.5–4.8% translates to a monthly loan servicing cost of roughly S$5,400–S$5,700. The Total Debt Service Ratio (TDSR) cap is 60%, meaning a buyer's total monthly debt obligations (mortgage, car loans, credit card payments, other liabilities) cannot exceed 60% of gross monthly income; using the loan above, this implies a minimum monthly gross income requirement of approximately S$9,000–S$9,500 to comfortably pass bank underwriting whilst retaining headroom for other liabilities. Buyers with existing debts (car loans, personal loans, or spouse's obligations) will face tighter TDSR constraints and may need higher income to qualify for the full 75% LTV, or alternatively reduce their loan size by putting down a larger deposit—typically 25–30% for maximum flexibility.
Vacanza @ East competes directly with developments in the broader Lengkong–Kembangan corridor such as Seaside Residences, Commonwealth Towers, and various older private condominiums; at S$1,759 psf, it is broadly in line with mid-tier newer projects whilst offering modern finishes and presumed contemporary amenities that older stock in the area cannot match. Unlike ultra-prime developments clustered immediately around Kembangan MRT (which command S$1,850+ psf but offer limited differentiation), Vacanza @ East positions itself as the smart choice for budget-conscious buyers seeking new construction quality without paying the extreme premium for being metres from the station. The development's relative lack of name recognition compared to larger flagship projects may actually work in favour of value-conscious investors, as buyer demand is typically less speculative and more fundamentals-driven, supporting steadier capital appreciation and lower volatility.
In the Kembangan–Lengkong area, mid to high floors (floors 10–20 in a typical 25–30 storey development) typically command the strongest rental demand and capital appreciation, as they offer superior views and reduced noise exposure compared to lower floors whilst remaining cost-effective relative to penthouses. Lower floors (ground to 5th storey) suffer from perceived noise, reduced natural light, and lower prestige, though they can appeal to elderly buyers or investors targeting very budget-conscious renters; these units typically appreciate more slowly and rent at a 5–10% discount to mid-floors. For this specific property at 807 sqft, a mid-to-high floor unit on a south or east-facing aspect would optimise both rental yield (tenants pay a premium for light and views) and long-term capital gains, making it worth requesting floor plans and aspect orientation details before committing—avoid ground-adjacent units or those facing service roads if possible.
The Kembangan–Lengkong–Geylang Serai cluster has seen significant new residential supply approval over the past five years, with several Grade A projects either recently completed or in the pipeline for 2025–2027; this supply reality means that passive capital appreciation cannot be assumed and will depend more on personal circumstances and macro interest rate movements than on scarcity. The URA's planning framework continues to zone this area for mixed residential and commercial development, which supports long-term desirability but also invites ongoing competition; however, the East–West Line's capacity limitations and the area's position as a genuine transit node (not speculative) suggests that new supply will be absorbed by demographic migration rather than creating a glut. Your capital appreciation outlook is therefore best framed as 2–3% annually for a holding period of 10+ years, driven by gentle gentrification and population growth, rather than any near-term windfall; if you are purchasing this property, do so for the fundamentals of owning a well-located modern home, not as a speculative bet on dramatic price growth.