Answer
Rental Yield for Singapore Condos in 2026
Before you buy a condo “for investment,” run the yield numbers. Most people overestimate their return because they only look at gross yield.
Answer: Typical gross rental yield for Singapore condos is 3-4% for mass market (OCR/RCR) and 2-3% for prime district (CCR). After deducting maintenance fees, property tax, income tax, vacancy, and agent commissions, net yield drops to 1.5-2.5%. Formula: (Monthly Rent x 12 / Purchase Price) x 100. A $1.5M condo renting at $3,500/month = 2.8% gross yield.
Rental Yield Formula
| Metric | Formula |
|---|---|
| Gross Yield | (Annual Rent / Purchase Price) x 100 |
| Net Yield | (Annual Rent − Annual Costs) / Purchase Price x 100 |
Gross yield is useful for quick comparison. Net yield is what actually lands in your pocket.
Gross Yield at Different Price/Rent Combos
Monthly rent across the top. Purchase price down the side.
| Purchase Price | $2,500/mo | $3,000/mo | $3,500/mo | $4,000/mo | $4,500/mo | $5,500/mo |
|---|---|---|---|---|---|---|
| $1,000,000 | 3.0% | 3.6% | 4.2% | 4.8% | 5.4% | 6.6% |
| $1,500,000 | 2.0% | 2.4% | 2.8% | 3.2% | 3.6% | 4.4% |
| $2,000,000 | 1.5% | 1.8% | 2.1% | 2.4% | 2.7% | 3.3% |
| $2,500,000 | 1.2% | 1.4% | 1.7% | 1.9% | 2.2% | 2.6% |
| $3,000,000 | 1.0% | 1.2% | 1.4% | 1.6% | 1.8% | 2.2% |
Green = 3%+ gross yield. This is gross — net will be 1-1.5% lower.
Typical Yields by Market Segment
| Segment | Typical Price | Typical Rent | Gross Yield |
|---|---|---|---|
| OCR (Outside Central) | $1,000,000 – $1,500,000 | $2,800 – $3,800/mo | 3.0 – 4.0% |
| RCR (Rest of Central) | $1,200,000 – $2,000,000 | $3,200 – $4,500/mo | 2.5 – 3.5% |
| CCR (Core Central) | $2,000,000 – $4,000,000 | $4,000 – $7,000/mo | 2.0 – 3.0% |
OCR = Punggol, Tampines, Jurong. RCR = Queenstown, Toa Payoh. CCR = Orchard, Marina Bay, Bukit Timah.
Gross vs Net Yield — The Real Numbers
Here's what a $1.5M condo renting at $3,500/month actually nets you after all costs:
| Item | Annual | Monthly |
|---|---|---|
| Gross rental income | $42,000 | $3,500 |
| Maintenance fee | −$6,000 | −$500 |
| Property tax (estimated) | −$3,400 | −$283 |
| Income tax on rent (est. 15% marginal) | −$4,890 | −$408 |
| Agent commission (1 month / 2yr lease) | −$1,750 | −$146 |
| Vacancy (2 weeks/year avg) | −$1,615 | −$135 |
| Repairs & upkeep | −$1,000 | −$83 |
| Net rental income | $23,345 | $1,945 |
| Gross yield | 2.8% | |
| Net yield | 1.6% | |
Example only. Property tax based on estimated annual value. Income tax at 15% marginal rate after deductible expenses. Actual numbers vary.
Does Rental Yield Cover the Mortgage?
The key question for investment buyers: does the rent cover your monthly mortgage? At current rates, usually not entirely.
| Price | Monthly Mortgage (75% LTV, 3.5%) | Typical Rent | Gap |
|---|---|---|---|
| $1,000,000 | $3,753 | $2,800 | −$953 |
| $1,500,000 | $5,630 | $3,500 | −$2,130 |
| $2,000,000 | $7,507 | $4,500 | −$3,007 |
| $3,000,000 | $11,260 | $5,500 | −$5,760 |
Mortgage: 75% LTV, 3.5% interest, 25-year tenure. Rent is before costs. The gap is your monthly cash outflow.
Run the numbers for your property
Calculate your stamp duty, affordability, and monthly mortgage to see the full investment picture.
FAQ
What is a good rental yield for a Singapore condo?
A gross yield of 3-4% is considered decent for a mass market condo in Singapore. Anything above 4% is good. CCR (prime district) condos typically yield 2-3% because purchase prices are higher relative to rents. Net yield after all costs is usually 1.5-2.5%.
How do you calculate rental yield?
Gross rental yield = (Annual Rent / Purchase Price) x 100. For example, a $1.5M condo renting at $3,500/month: ($3,500 x 12) / $1,500,000 x 100 = 2.8% gross yield. Net yield subtracts maintenance, tax, vacancy, and agent fees.
What costs reduce rental yield?
Key costs: maintenance fee ($300-$800/month), property tax (10-23% on annual value above $8,000), income tax on rental income (marginal rate), agent commission (1 month rent per year if using agent), vacancy (typically 2-4 weeks between tenants), and minor repairs/upkeep.
Is rental yield in Singapore good compared to other countries?
Singapore rental yields (3-4% gross) are moderate. Higher than Hong Kong (1.5-2.5%) and Tokyo (2.5-3.5%), but lower than Bangkok (4-6%) or KL (4-5%). However, Singapore offers capital appreciation, political stability, and a strong rental market with expat demand.
Should I buy a condo for rental yield or capital gain?
In Singapore, capital appreciation has historically been the bigger wealth builder. Rental yield mostly covers your mortgage and holding costs. The math works best when you buy at the right cycle — not when you chase yield. A 3% yield condo that appreciates 30% in 5 years beats a 5% yield property that stays flat.
Related
- Stamp Duty Calculator — factor stamp duty into your yield calculation
- Affordability Calculator — max condo from your income and CPF
- Condo Maintenance Fee Singapore
- Stamp Duty on a $2M Condo
- Stamp Duty on a $3M Condo
- Salary Needed for a $2M Condo
Last updated Feb 2026. Yields based on market estimates and publicly available transaction data. Actual yields depend on specific property, tenant, and market conditions. This is not financial advice.