Singapore Condo Rental Yield & Arbitrage Radar
Benchmarking 1,915 condominiums across 175,661 verified transacted URA leases. Filter by gross yields, deduct statutory IRAS property tax and MCST sinks, and uncover true net landlord cashflows.
Singapore Key Commercial & Tech Tenant Hubs
Top employment clusters powering high rental occupancy and steady corporate tenancy.
One-North / Science Park Innovation Cluster
High-density tech, biomedical & academic tenant demand (Grab, Shopee, A*STAR, NUS).
CBD Financial & Marina Bay Core
Ultra-prime executive rental corridor within walking distance to tier-1 investment banks.
Changi Business Park & Aviation Corridor
Steady banking back-office, aviation logistics & semiconductor tenant pool.
Jurong Lake District (JLD) & Innovation Hub
Singapore's 2nd CBD with Tuas Mega Port & High-Speed Rail revival catalysts.
1. URA Data Source: Rental yields and transaction volumes are derived from official Urban Redevelopment Authority (URA) caveats and rental contracts filed within the preceding 12 calendar months. Transacted rental rates represent contract gross figures and do not include agent leasing commissions or repair indemnities.
2. IRAS Property Tax: Net yield calculations incorporate the Inland Revenue Authority of Singapore (IRAS) non-owner-occupied progressive residential tax schedule (12% to 36% based on estimated Annual Value). Owner-occupier concessionary tax schedules do not apply to tenanted investment properties.
3. CEA Practice Guidelines: In accordance with CEA Practice Guidelines PG 2/2011, yield rankings and cashflow projections are published for market research and financial simulation purposes. Past rental performance does not guarantee future tenancies. Consult licensed CEA professionals for customized tenancy due diligence.
Frequently Asked Questions on Singapore Condo Rental Yields
Q1.What is the difference between Gross Rental Yield and True Net Rental Yield?
Gross Rental Yield is simply the total annual rent divided by the purchase price (Annual Rent / Purchase Price × 100%). However, landlords do not keep 100% of the rent. True Net Rental Yield deducts essential operating expenses: (1) IRAS Non-Owner-Occupied Property Tax (12% to 36% progressive rates based on Annual Value); (2) Monthly MCST maintenance and sinking fund fees ($300 to $650/month); and (3) A conservative 1-month vacancy and maintenance buffer per year. Net Rental Yield measures the actual Net Operating Income (NOI / Purchase Price × 100%) generated by the real estate asset.
Q2.How does IRAS calculate property tax on tenanted investment properties?
Under the Property Tax Act, properties not occupied by their owner are taxed at progressive non-owner-occupier rates based on the property's Annual Value (AV). As of 2024–2026, the statutory schedule is: First $30,000 of AV at 12%; Next $15,000 ($30,001 to $45,000) at 20%; Next $15,000 ($45,001 to $60,000) at 28%; and AV above $60,000 at 36%. Concessionary owner-occupier tax rates (0%–32% with a large $12,000 0% tax tier) do NOT apply to rented-out properties.
Q3.Which districts in Singapore typically deliver the highest condominium rental yields?
Historically, Outside Central Region (OCR) and high-density employment fringe districts offer the highest gross rental yields (3.8% to 4.5%+), particularly District 21 (Upper Bukit Timah / Beauty World compact units), District 05 (One-North / Clementi tech and university belt), District 16/17 (Changi Business Park corridor), and District 22 (Jurong Lake District / Boon Lay). In contrast, Core Central Region (CCR) prime luxury condos (D09, D10) typically record lower gross yields (2.8% to 3.4%) because high capital values outpace nominal rents, functioning primarily as prestige capital preservation vehicles.
Q4.Why do smaller units (1-bedroom and 2-bedroom) often yield higher percentages than 4-bedroom units?
Compact units command higher rental rates per square foot ($PSF/month) because single expatriates, tech professionals, and young couples prioritize prime location and MRT accessibility over total square footage. A 450 sqft 1-bedder renting for $3,000/mo achieves $6.67 PSF, whereas a 1,500 sqft 4-bedder in the same development renting for $6,500/mo achieves $4.33 PSF. Because the capital entry price of compact units is significantly lower, the resulting gross and net yields are systematically higher.
Q5.How do mortgage interest rates impact a landlord's leveraged net monthly cashflow?
When a landlord finances 75% of the purchase price via a bank mortgage under MAS Notice 645, monthly debt service consists of principal amortisation and interest. In Singapore's current interest rate environment (3.0% to 3.8%), monthly mortgage repayments frequently exceed the net operating income (NOI), creating a negative monthly cashflow out-of-pocket. However, a significant portion of each mortgage payment pays down the loan principal (equity accumulation). A negative monthly cashflow does not mean an unprofitable investment, provided capital appreciation and equity growth outpace holding costs.
Q6.Are rental yields published by PropAce based on asking rents or actual transactions?
All rental statistics and yield metrics on PropAce are derived strictly from official Urban Redevelopment Authority (URA) caveats and stamped rental contracts registered over the trailing 12 months. Unlike portal asking prices that include speculative landlord markups, URA rental contracts represent authentic legally executed tenancy agreements.
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