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Singapore's rental market offers moderate but stable yields for property investors as of September 2025. The average gross rental yield in Singapore currently sits between 3.29% and 3.36%, with net yields typically ranging from 1.3% to 1.8% after accounting for ownership costs.
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Singapore rental yields vary significantly by property type and location, with condominiums and HDB flats offering the best returns around 3.0-4.0%, while prime central areas yield lower at 2.7-3.2% compared to suburban areas at 3.4-4.0%.
The Singapore rental market remains stable with strong tenant demand from expatriates and young professionals, though vacancy rates are higher in prime central areas at 10.7% versus 5.6% in suburban locations.
| Property Type | Average Gross Yield (%) | Monthly Rent Range (SGD) | Key Features |
|---|---|---|---|
| Condominiums (CCR) | 2.7-3.2 | $3,900-$7,500 | High expat demand, premium locations |
| Condominiums (Suburban) | 3.4-4.0 | $3,100-$5,300 | Higher yields, family-friendly areas |
| HDB Flats | 3.0-3.5 | $2,300-$3,500 | Steady demand, regulatory restrictions |
| Landed Houses | 2.0-2.8 | $6,000-$25,000 | Lower yields, long-term tenants |
| Studio/1BR Units | 3.5-4.2 | $3,100-$3,900 | Highest yields, young professional demand |
What's the current average rental yield in Singapore right now?
The average gross rental yield in Singapore stands at 3.29% to 3.36% as of September 2025.
Net rental yields, which account for ownership costs like maintenance fees, property taxes, and vacancy periods, typically range from 1.3% to 1.8%. This represents a decrease from previous years when yields averaged 3.5% to 4.0%, primarily due to property prices rising faster than rental rates.
The Singapore rental market remains stable despite these moderate yields, with consistent tenant demand from expatriates, young professionals, and families. Investors should expect yields to hover between 3% and 4% in the near term, unless significant changes occur in property prices or rental demand patterns.
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How do rental yields differ across property types like condos, HDB flats, and landed houses?
Condominiums offer the most attractive rental yields in Singapore, ranging from 3.0% to 4.0% gross yield.
HDB flats provide steady yields between 3.0% and 3.5%, despite resale and rental restrictions that limit investor options. These properties remain popular due to their affordability and consistent demand from local tenants and permanent residents.
Landed houses generate the lowest gross yields at 2.0% to 2.8%, but they typically attract long-term tenants and experience lower vacancy rates. The higher purchase prices of landed properties significantly impact yield calculations, though they often provide better capital appreciation potential over time.
Prime district condominiums in areas like Orchard and Marina Bay yield between 2.7% and 3.0%, while suburban condominiums can achieve yields of 3.4% to 4.0% due to lower entry costs and competitive rental markets.
What are the typical yields in the prime central areas compared to suburban neighborhoods?
| Location Category | Yield Range (%) | Key Districts | Investment Characteristics |
|---|---|---|---|
| Prime Central (CCR) | 2.7-3.2 | Orchard, Marina Bay, River Valley | High prices, stable expat demand |
| City Fringe (RCR) | 3.2-3.5 | Alexandra, Commonwealth, East Coast | Balanced pricing and rental potential |
| Suburban Areas (OCR) | 3.4-4.0 | Hougang, Punggol, Sengkang, Jurong | Higher yields, family-oriented tenants |
| Districts 1-3 | 2.5-3.0 | Boat Quay, Raffles Place, Tanjong Pagar | Premium pricing, corporate tenants |
| Districts 9-11 | 2.8-3.2 | Orchard, Newton, Novena | Expat professionals, shopping access |
| Emerging Suburbs | 3.5-4.2 | Punggol, Sengkang, Woodlands | Best yields, growing infrastructure |
How does the size or surface area of a unit affect rental yield in practice?
Smaller units consistently deliver higher rental yields in Singapore's property market.
Studio and one-bedroom condominiums command the highest yields, often reaching 3.5% to 4.2% gross yield due to their lower purchase prices and strong demand from young professionals and expatriate singles. These units typically rent for SGD 3,100 to SGD 3,900 monthly in suburban areas and SGD 3,900 to SGD 4,500 in prime locations.
Two-bedroom units offer moderate yields between 3.2% and 3.8%, while three-bedroom properties generally yield 2.8% to 3.5%. The larger units require significantly higher purchase prices but don't proportionally increase rental income, resulting in compressed yields.
The yield difference between one-bedroom and two-bedroom condominiums is often negligible, but the lower entry cost of smaller units makes them more accessible to investors seeking higher percentage returns on their investment capital.
What's the breakdown of total costs for owners, including purchase price, taxes, maintenance fees, and other charges?
| Cost Category | Amount/Rate | Description |
|---|---|---|
| Purchase Price (Condos) | SGD 1,972 per sqft average | Varies significantly by location and project |
| Purchase Price (HDB) | SGD 596 per sqft average | Resale market pricing for permanent residents |
| Property Tax (Owner-Occupied) | 0-16% progressive rates | Based on annual value of property |
| Property Tax (Investment) | 10-20% progressive rates | Higher rates for non-owner occupied properties |
| MCST Maintenance Fees | SGD 300-800 monthly | Condominium facilities and common area upkeep |
| Income Tax on Rental | Personal tax rates + 8% Medisave | Net rental income after allowable deductions |
| ABSD (Additional Buyer's Stamp Duty) | Variable by citizenship/residency | Higher for foreigners and multiple properties |
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How do mortgage payments and financing terms influence the actual net rental yield for investors?
Mortgage financing significantly impacts net rental yields, especially in Singapore's moderate yield environment.
Current mortgage rates in Singapore range from 3.5% to 5.0% depending on the loan package and borrower profile. With gross yields averaging 3.3%, leveraged investors often find their net cash-on-cash returns compressed or negative if rental income doesn't cover loan servicing costs.
Foreign investors face additional challenges with maximum loan-to-value ratios of 75% for the first property and 45% for subsequent properties. This higher equity requirement reduces leverage benefits but also limits financial risk exposure.
Investors using mortgage financing should calculate their debt service coverage ratio carefully, ensuring rental income exceeds monthly mortgage payments by at least 20% to account for vacancy periods, maintenance costs, and other unexpected expenses.
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What are the typical rental prices today for different property types and sizes?
Rental prices in Singapore vary significantly by property type, size, and location as of September 2025.
| Property Type/Size | Monthly Rent (SGD) | Location Premium |
|---|---|---|
| Studio/1BR Condo (Prime) | $3,900-$4,500 | Central Business District, Orchard area |
| Studio/1BR Condo (Suburban) | $3,100-$3,600 | Jurong, Hougang, Punggol areas |
| 2BR Condo | $4,600-$5,200 | Island-wide average pricing |
| 3BR Condo (Prime) | $7,500-$9,000 | Districts 9-11, Marina Bay |
| 3BR Condo (Suburban) | $5,300-$6,500 | Outer central regions |
| HDB 3-Room | $2,300-$3,500 | Varies by town and age |
| Landed Houses | $6,000-$25,000 | Highly variable by size and location |
What are the vacancy rates like in different areas and property categories?
Vacancy rates in Singapore show clear geographical patterns that directly impact investor returns.
Core Central Region (CCR) properties experience the highest vacancy rate at 10.7% as of September 2025, primarily due to higher rental costs and selective tenant preferences. Rest of Central Region (RCR) areas maintain a moderate 7.2% vacancy rate, while Outside Central Region (OCR) suburban areas achieve the lowest vacancy rate at 5.6%.
Private condominium developments maintain strong occupancy rates between 89% and 94% overall, indicating healthy demand across the sector. HDB flats typically experience lower vacancy rates due to their affordability and appeal to local residents and permanent residents.
Newer developments often face higher initial vacancy rates during the lease-up period, while established properties in well-connected locations maintain more consistent occupancy levels throughout market cycles.
Who are the main renter profiles in Singapore right now, and what are they looking for?
Singapore's rental market is dominated by three key tenant categories with distinct preferences.
1. **Expatriate professionals and executives** seeking prime central region condominiums with proximity to the Central Business District, premium amenities, and flexible lease terms. They typically prefer one-bedroom to two-bedroom units and prioritize location over space.2. **Young professionals and singles**, including both locals and foreigners, who focus on smaller units with good connectivity to business districts and entertainment areas. They often choose city fringe locations for better value while maintaining reasonable commute times.3. **Expatriate families** looking for larger units in suburban areas near international schools, parks, and family-friendly amenities. They typically require three-bedroom units or landed houses with longer lease commitments.4. **Students and early-career professionals** seeking affordable options in well-connected areas, often considering HDB flats or older condominium developments with basic amenities.5. **Corporate housing tenants** requiring furnished units with flexible terms, typically in prime locations for short to medium-term assignments.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Singapore versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's the difference in yield potential between renting short term versus long term?
Short-term rental yields can potentially exceed long-term yields on a daily rate basis, but face significant operational challenges in Singapore.
Short-term rentals, where permitted under Singapore's regulations, may generate 20% to 40% higher gross income per day compared to long-term rates. However, higher vacancy rates, turnover costs, and management requirements often result in similar or lower net yields compared to traditional leasing.
Long-term leases provide stability and predictable cash flow with typical lease terms of one to two years. These arrangements reduce vacancy risk, minimize turnover costs, and create stronger tenant relationships that often lead to lease renewals.
Singapore's regulatory environment favors long-term rentals, with strict limitations on short-term accommodations in most residential developments. Investors should verify condominium management corporation (MCST) rules and Urban Redevelopment Authority (URA) regulations before considering short-term rental strategies.
How have rents and yields changed compared to five years ago, one year ago, and what's the forecast for the next 1, 5, and 10 years?
Singapore rental yields have experienced a gradual decline over the past five years due to property price appreciation outpacing rental growth.
Five years ago in 2020, average gross rental yields ranged from 3.5% to 4.0%, with lower property prices and rents beginning to recover from pandemic impacts. Rental rates surged approximately 18% to 22% between 2020 and 2024 as demand recovered and new supply remained limited.
One year ago in 2024, yields averaged around 3.40%, representing a moderate decline from 2020 levels despite strong rental growth. Property prices increased faster than rental rates during this period, compressing yield calculations.
Current yields in September 2025 average 3.29% to 3.36%, showing continued gradual compression. Analysts forecast yields to remain stable between 3% and 4% over the next one to five years, assuming balanced supply and demand conditions without significant price spikes.
Long-term forecasts for the next 10 years suggest Singapore property will maintain its reputation for stability and capital appreciation, though dramatic yield increases are unlikely unless property prices moderate significantly or rental demand experiences unexpected surges.
It's something we develop in our Singapore property pack.
How does Singapore's rental yield compare with other major global cities that attract similar investors?
| City | Gross Yield (%) | Investment Characteristics |
|---|---|---|
| Singapore | 3.29-3.36 | Low volatility, high entry cost, stable market |
| Hong Kong | 2.4-2.7 | Policy-sensitive, premium pricing, limited supply |
| London | 2.8-3.5 | High prices, Brexit impacts, diverse markets |
| Sydney, Australia | 3.8-4.5 | Strong capital appreciation, regulatory changes |
| Bangkok, Thailand | 6.1 | Higher yields, less regulated, emerging market |
| United States (Average) | 6.68 | Market-dependent, diverse opportunities |
| Tokyo, Japan | 4.2-5.5 | Stable yields, aging population demographics |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Singapore's rental yield environment offers stability and consistent returns for investors seeking long-term capital preservation with moderate income generation.
The market's maturity, regulatory framework, and diverse tenant base create a reliable investment environment, though investors should expect yields to remain in the 3% to 4% range rather than seeking high-yield opportunities available in emerging markets.
Sources
- Global Property Guide - Singapore Rental Yields
- Wise - Rental Yield Singapore Guide
- Global Property Guide - Singapore Rent Yields
- SHE Real Estate - Rental Yield Calculator
- HomeJourney - HDB vs Private Property
- Capstone72 - Best Condos Singapore 2025
- SG Luxury Homes - Prime District Yields
- PropsBit - Singapore Rental Market Q1 2025
- URA - Media Release Property Statistics
- BuyCondo - Cost of Being a Landlord Singapore 2025