How to Calculate Rental Yield in Singapore: Gross vs Net

Rental yield measures the annual rent a property earns as a percentage of its price. There are two figures, and they answer different questions:

• Gross yield = annual rent ÷ purchase price. Simple, but it ignores every cost.
• Net yield = (annual rent − running costs) ÷ purchase price. This is the honest number.

Take a $1,800,000 condo renting at $4,500 a month:

That one-percentage-point gap is tax, maintenance, agent fees and vacancy. Work out gross and net yield for a specific unit — with your own rent and costs — on the Property Financial Planner.

Rates as of 2026 — verify with IRAS. Figures are illustrative, not personalised advice.

Gross yield is the quick comparison figure:

Gross yield = (monthly rent × 12) ÷ purchase price

For a $1,800,000 condo renting at $4,500 a month:

• Annual rent = $4,500 × 12 = $54,000
• Gross yield = $54,000 ÷ $1,800,000 = 3.0%

It is useful for a first pass — comparing two units at a glance — but it overstates what you keep, because it assumes the property costs nothing to hold and the rent is never interrupted. Neither is true. Use gross to shortlist; use net to decide.

Net yield is the figure that reflects reality:

Net yield = (annual rent − annual running costs) ÷ purchase price

The running costs on a tenanted Singapore condo typically include:

• Maintenance (MCST) fees — often $300–$500 a month;
• Property tax — charged at higher non-owner-occupier rates once the home is let;
• Agent commission — commonly around half a month's rent per year of lease;
• Insurance and minor repairs;
• Vacancy — the weeks between tenants when no rent comes in.

Together these commonly cut a 3% gross yield to around 2% net. The exact gap depends on the maintenance fee and the property-tax band, which is why net yield must be worked out per property, not assumed.

Here is where the yield goes, for the $1,800,000 condo renting at $4,500 a month:

Net income = $54,000 − $18,750 = $35,250, so net yield = $35,250 ÷ $1,800,000 = ~2.0%.

The two biggest lines are usually property tax and maintenance — and property tax is the one buyers most often underestimate, because it jumps once the home is tenanted (see the next section).

Tax hits rental returns twice, and both are easy to miss.

Property tax rises. An owner-occupied home is taxed at concessionary rates (0% to 32% of Annual Value). Once you rent it out, it is taxed at non-owner-occupier rates — 12% to 36% of Annual Value. On an Annual Value of $54,000, that is about $9,120 a year, versus far less if you lived there. See owner-occupier vs non-owner property tax.

Rental income is taxable. The net rent (after allowable expenses) is added to your income and taxed at your personal rate. You may deduct actual expenses — mortgage interest, property tax, maintenance, repairs — or instead claim a flat 15% of gross rent as deemed expenses, plus mortgage interest. See how rental income is taxed.

Because both depend on Annual Value and your tax bracket, net yield is always lower than the running-cost figure alone suggests. Factor income tax in before treating the net yield as money in hand.

By international standards, Singapore rental yields are low, because property prices are high relative to rents. As a rough guide:

• Private condos commonly sit around 3% gross / 2% net.
• HDB flats usually yield more — often 4–5% gross — because they are cheaper relative to rent (though owners must clear the Minimum Occupation Period before subletting the whole flat).

"Good" depends on your goal. If you want the property to pay for itself each month, you need the net yield to beat your mortgage rate — which, at around 3–4%, a 2% net yield does not. Many condo investors accept a shortfall, betting on price appreciation instead. PropKaki publishes actual gross rental yields by HDB town, so you can compare a specific area rather than rely on rules of thumb.

Regulatory figures. Non-owner-occupier property-tax rates (12% to 36% of Annual Value), owner-occupier rates (0% to 32%), the taxation of net rental income, and the 15% deemed-expense option are from IRAS. All are current as of 2026 — verify the live figure on IRAS before you rely on it.

Worked examples. Gross and net yield are computed as annual rent ÷ price and (annual rent − running costs) ÷ price — the same method as the PropKaki Property Financial Planner. Maintenance, agent commission, insurance and the 2-week vacancy allowance are indicative and vary by property; property tax is computed on an illustrative Annual Value equal to the annual rent.

What we have not claimed: a specific market yield for any area (PropKaki publishes actual gross yields by HDB town separately); your personal income-tax outcome; or that this is personalised advice. This is general information, not financial advice. For your own numbers, run the Property Financial Planner.