Singapore's property market is one of Asia's most stable — but also one of its most expensive. For landlords evaluating rental yield or prospective investors considering buy-to-let, understanding current yields across property types is essential.
What Is Rental Yield?
Gross rental yield = (Annual rental income ÷ Purchase price) × 100
Net rental yield = ((Annual rental income − Annual expenses) ÷ Purchase price) × 100
Annual expenses include: property tax, maintenance/MCST fees, insurance, vacancy periods, repair costs, and agent commissions.
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Current Rental Yields by Property Type (2026)
HDB Resale Flats
| Flat Type | Typical Purchase Price | Typical Monthly Rent | Gross Yield |
|---|---|---|---|
| 3-room, mature estate | $450K – $550K | $2,200 – $2,800 | 4.8% – 6.0% |
| 4-room, mature estate | $550K – $750K | $2,800 – $3,500 | 4.5% – 5.5% |
| 4-room, non-mature | $400K – $550K | $2,400 – $3,000 | 5.2% – 6.2% |
| 5-room, central | $650K – $900K | $3,200 – $4,200 | 4.8% – 5.6% |
Net yield (after expenses): Typically 3.5% – 5.0%
HDB flats consistently deliver Singapore's best rental yields because purchase prices are relatively moderate compared to private property. However, HDB ownership has significant restrictions (MOP, subletting rules, CPF usage limits for older flats).
Key consideration: HDB flats have a 99-year leasehold. Flats older than 40 years start to experience value decay and bank financing becomes more difficult.
Private Condominiums
| Property | Typical Purchase Price | Typical Monthly Rent | Gross Yield |
|---|---|---|---|
| 1BR, OCR | $900K – $1.1M | $2,800 – $3,500 | 3.0% – 3.8% |
| 1BR, CCR | $1.3M – $1.8M | $3,800 – $5,500 | 3.0% – 3.7% |
| 2BR, OCR | $1.2M – $1.6M | $3,500 – $4,800 | 3.0% – 3.6% |
| 2BR, CCR | $2.0M – $3.0M | $5,000 – $7,500 | 2.8% – 3.4% |
| 3BR, OCR | $1.8M – $2.5M | $4,500 – $6,000 | 2.7% – 3.2% |
Net yield (after expenses): Typically 2.0% – 2.8%
Private condo yields are lower than HDB due to higher purchase prices. Expenses include MCST fees ($300–$600/month), higher property tax, and greater maintenance expectations from tenants.
However, condos offer greater capital appreciation potential, no MOP restrictions, and are eligible for ABSD remission schemes (for certain buyer profiles).
Landed Properties
| Type | Typical Purchase Price | Typical Monthly Rent | Gross Yield |
|---|---|---|---|
| Terrace (1,500 sqft) | $3.5M – $6M | $5,500 – $8,000 | 1.6% – 2.3% |
| Semi-detached | $5M – $10M | $7,000 – $14,000 | 1.4% – 2.0% |
| Bungalow | $8M – $20M+ | $10,000 – $25,000 | 1.2% – 1.8% |
Net yield: Typically 1.0% – 1.5%
Landed property yields are the lowest in Singapore — investors buy landed for capital appreciation, not yield. The land component is the primary value driver, and Singapore land is finite and cannot be built upon beyond what's already there.
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Key Expenses That Eat Into Net Yield
Property Tax
Singapore property tax is significant and rises steeply with annual value:
For non-owner-occupied residential properties (i.e., rented out):
- Annual value up to $30,000: 12%
- $30,001 – $45,000: 20%
- Above $45,000: up to 36% (progressive)
Annual value is determined by IRAS based on estimated annual rent.
Example: A condo with $4,500/month rent has annual value of approximately $54,000. Property tax is significant — typically $8,000–$15,000/year for mid-to-high-end condos. This is a major yield drag often overlooked by new investors.
MCST Fees (Condos)
Monthly maintenance contributions for condo common areas: $300–$600/month for a typical 2BR unit. This is paid by the owner regardless of whether the unit is tenanted.
Agent Commissions
- First year: Usually 0–1 month's rent (paid by landlord if full service agency)
- Renewal: 0.5 month's rent per year
- Via self-listing platforms like SGLinkUp: $0
Over a 5-year holding period, agent commissions typically add up to 2–4% of total rental income.
Vacancy
Assume 1–2 months of vacancy per year when calculating net yield. This is realistic even in a hot rental market when tenants change, especially in mid-market condos.
Repairs and Maintenance
Budget 0.5–1.5% of property value per year for ongoing maintenance, depending on age and type.
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The 2026 Investment Case
For HDB resale (SC buyers only): Strong yields (4–6% gross), low management costs, stable tenant demand. The negative: HDB leasehold decay for older flats, and HDB ownership rules restrict exit options (cannot sell within MOP, limited ability to upgrade).
For private condos (all buyers): Lower gross yields (3–3.5%) but more liquid, no MOP restrictions, eligible for foreigners to buy. Capital appreciation has historically averaged 3–5% per year in prime areas. Net-net, total return (yield + appreciation) of 5–7% per year has been achievable in good locations.
For foreigners: ABSD of 60% on purchase effectively eliminates investment rationale for most foreigners. A $2M condo purchase triggers $1.2M in ABSD alone — impossible to recover through rental yield. Foreigners in Singapore almost universally rent rather than buy for investment.
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Alternative: Real Estate Investment Trusts (S-REITs)
For those who want exposure to Singapore real estate without the leverage, illiquidity, and management burden of direct ownership, Singapore REITs (S-REITs) offer:
- Dividend yields of 5–8% (gross)
- Daily liquidity (traded on SGX)
- Diversification across commercial, industrial, retail, and residential sectors
- No ABSD, stamp duty, or property management
Major S-REITs: CapitaLand Ascendas REIT, Mapletree Logistics Trust, Keppel REIT, CapitaLand Integrated Commercial Trust.
This is increasingly where Singapore-based investors allocate property capital, particularly as direct residential yields have compressed.