Answer
How to Calculate Rental Yield in Singapore — Step by Step
Rental yield is the most important number for property investors. Here is how to calculate it properly — and why gross yield alone can be misleading.
Answer: Gross rental yield = Annual Rent / Purchase Price x 100. For a $1.5M condo renting at $3,800/mo: $45,600 / $1,500,000 = 3.04% gross yield. After deducting MCST, property tax, income tax, vacancy, and repairs, the net yield drops to approximately 1.52%. Always calculate net yield before investing — it is the number that matters.
The Two Formulas You Need
Gross Rental Yield
(Monthly Rent x 12) / Purchase Price x 100
Quick and easy. Good for initial screening. Does NOT account for costs.
Net Rental Yield
(Annual Rent - All Expenses) / Total Purchase Cost x 100
The real return. Includes MCST, tax, vacancy, repairs, agent fees. Use total cost (price + stamp duty + legal + reno).
Gross Yield Quick Reference
Based on typical 2026 market rents for 2-bed condos
| Purchase Price | Monthly Rent | Annual Rent | Gross Yield |
|---|---|---|---|
| $800,000 | $2,200 | $26,400 | 3.30% |
| $1,000,000 | $2,800 | $33,600 | 3.36% |
| $1,200,000 | $3,200 | $38,400 | 3.20% |
| $1,500,000 | $3,800 | $45,600 | 3.04% |
| $2,000,000 | $4,500 | $54,000 | 2.70% |
| $3,000,000 | $6,000 | $72,000 | 2.40% |
Pattern: higher-priced properties generally yield less (yield compression).
Worked Example: Net Yield on a $1.5M Condo
2-bed condo, OCR, renting at $3,800/mo
| Item | Amount/Year |
|---|---|
| Gross rental income | $45,600 |
| MCST + sinking fund ($500/mo) | $-6,000 |
| Property tax (investor rate, AV $36K) | $-4,560 |
| Income tax (est. 15% marginal rate on net) | $-4,559 |
| Vacancy (1 month per 2 years) | $-3,800 |
| Agent fee (0.5 month per 2-year lease) | $-1,900 |
| Repairs and maintenance | $-2,000 |
| Net rental income | $22,781 |
| Net yield ($1.5M purchase price) | 1.52% |
Gross yield was 3.04%. Net yield is 1.52% — half the gross number. This is typical for Singapore.
Typical Yields by Region (2026)
| Region | Gross Yield | Net Yield | Examples |
|---|---|---|---|
| CCR (Core Central) | 2.0–3.0% | 1.0–1.8% | Orchard, Marina Bay, Sentosa |
| RCR (Rest of Central) | 2.8–3.5% | 1.5–2.2% | Queenstown, Tiong Bahru, Tanjong Pagar |
| OCR (Outside Central) | 3.5–4.5% | 2.0–2.8% | Jurong, Punggol, Tampines, Woodlands |
| HDB (whole unit) | 4.0–6.0% | 3.0–4.5% | After MOP, SC only, HDB approval |
Model your investment numbers
See the full cost of buying an investment property — stamp duty, ABSD, down payment, and monthly mortgage vs rental income.
Mortgage CalculatorFAQ
What is a good rental yield in Singapore?
A gross yield of 3–4% is considered decent for Singapore. Net yield (after expenses) is typically 1.5–2.5%. Anything above 3% net is excellent. OCR condos tend to yield higher (3.5–4.5% gross) but appreciate slower, while CCR condos yield less (2–3% gross) but may gain more in capital value.
Should I use purchase price or current market value for yield?
It depends on what you are measuring. Use purchase price + all acquisition costs (stamp duty, legal, reno) to calculate yield on money invested — this tells you your actual return. Use current market value to compare with other investments or to decide whether to hold or sell.
Why is net yield so much lower than gross yield?
The gap is typically 1–1.5 percentage points. The main drains: MCST + sinking fund ($400–$700/mo), property tax at investor rates (12–36% of AV), income tax on rental income (0–22%), vacancy (assume 1 month every 2 years), agent fee for finding tenants (0.5 month rent), and repairs/maintenance ($1,000–$3,000/yr).
Does rental yield include mortgage payments?
No. Rental yield measures the return on the property asset, not your cash flow after mortgage. To understand cash flow, subtract your monthly mortgage from net rental income. If your mortgage is $3,500/mo and net rent is $2,800/mo, you are negative $700/mo — which is normal for SG properties. Investors rely on capital appreciation to make up the difference.
How do I find out the market rent for a property?
Check URA rental transaction data (free, 3-month lag), 99.co and PropertyGuru rental listings for asking rents in the same development, or ask a property agent for recent signed leases. Signed rents are typically 5–10% below asking prices on listing platforms.
Related
Last updated Feb 2026. Rents from URA rental transaction data. Yields are estimates — actual results depend on specific property, tenant, and market conditions.