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Singapore's condo rental market offers some of the most stable returns in Southeast Asia, with average gross yields around 3.29% as of mid-2025. Mass-market condos in outer districts consistently deliver the highest rental yields, ranging from 3.5% to 4.1%, while luxury properties in prime locations typically yield between 2.7% and 3.2%. The rental market remains robust despite cooling measures, driven by strong expat demand and limited supply in key investment zones.
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Singapore condo rental yields average 3.29% gross as of June 2025, with mass-market properties in outer districts like Geylang and Woodlands delivering the highest returns at 3.5-4.1%.
After accounting for maintenance fees, property taxes, and other costs, net yields typically range from 1.5-2.2%, making Singapore a stable but moderate-yield investment destination compared to regional alternatives.
| Property Segment | Gross Yield Range | Typical Monthly Rent (2BR) | Purchase Price PSF |
|---|---|---|---|
| Mass-market (OCR) | 3.5% - 4.1% | S$2,000 - S$4,000 | S$1,150 - S$1,700 |
| Mid-tier (RCR) | 3.2% - 3.7% | S$3,000 - S$5,000 | S$1,700 - S$2,300 |
| Luxury (CCR) | 2.7% - 3.2% | S$4,500 - S$8,000 | S$2,300 - S$3,200+ |
| High-yield districts (D14, D25) | 3.8% - 4.0% | S$2,800 - S$4,200 | S$1,150 - S$1,600 |
| Near MRT stations | +0.3% - 0.7% | +S$200 - S$500 | +10% - 15% |
| Leasehold properties | +0.3% - 0.5% | Similar to freehold | -15% - 20% |
| Resale condos | 3.2% - 4.0% | Market rate | Lower than new launch |
What's the average gross rental yield for Singapore condos right now across different market segments?
The average gross rental yield for condos in Singapore stands at approximately 3.29% as of June 2025, representing a slight decline from 3.40% at the end of 2024.
Mass-market condos located in the Outside Central Region (OCR) deliver the strongest rental yields, typically ranging from 3.5% to 4.1%. These properties attract a broad tenant base including young professionals, expats on tighter budgets, and families seeking affordable housing near amenities.
Mid-tier properties in the Rest of Central Region (RCR) generate yields between 3.2% and 3.7%. These condos balance location convenience with reasonable pricing, making them popular among middle-income tenants and expatriate families. Properties in areas like Tiong Bahru, Novena, and Toa Payoh fall into this category.
Luxury condos in the Core Central Region (CCR) offer the lowest yields at 2.7% to 3.2%. Despite commanding premium rents, the high purchase prices in districts like Orchard, Marina Bay, and Sentosa significantly compress yield percentages. However, these properties often provide better capital appreciation potential over time.
Yields above 3.5% are considered attractive in the current Singapore market environment, making mass-market properties particularly appealing for yield-focused investors.
Which districts consistently deliver the highest rental yields and what are the typical percentage ranges?
Several districts consistently outperform the market average for rental yields, with specific neighborhoods emerging as clear winners for yield-focused investors.
Geylang (District 14) stands out as one of the top-performing areas, delivering yields between 3.8% and 4.0%. The district benefits from excellent connectivity to the CBD, affordable entry prices, and strong rental demand from both locals and expatriates seeking budget-friendly accommodations near the city center.
Woodlands and Admiralty (District 25) offer yields ranging from 3.8% to 4.0%. These northern districts attract tenants with competitive rental rates, good amenities, and proximity to Malaysia via the Causeway. The area is particularly popular among families and workers commuting to nearby industrial estates.
Hougang, Punggol, and Sengkang areas consistently generate yields between 3.5% and 4.0%. These mature estates offer excellent value propositions with well-developed infrastructure, shopping centers, and strong transport links to the city center.
Alexandra and Commonwealth areas (District 3) provide yields from 3.5% to 4.0%. These city-fringe locations are especially popular with expatriates due to their proximity to international schools and easy access to both the CBD and recreational facilities.
The key factor driving high yields in these districts is the combination of affordable purchase prices (typically S$1,150 to S$1,700 per square foot) and strong rental demand from diverse tenant groups.
How significantly does proximity to MRT stations, CBD, or universities impact rental yields?
Proximity to key infrastructure and amenities creates measurable impacts on rental yields, though the effects vary depending on the specific location factor.
Properties within walking distance of MRT stations typically command rental yield premiums of 0.3% to 0.7% compared to similar units located further away. This premium reflects the strong tenant preference for convenient public transport access, particularly among working professionals and expatriates who rely on the MRT system for daily commuting.
Condos near the Central Business District or major employment hubs like Jurong East or Tampines can achieve yield boosts of 0.2% to 0.5%. While these properties command higher rents, the purchase price premiums often offset much of the rental advantage, limiting the overall yield improvement.
University proximity provides some of the strongest yield impacts, with properties near National University of Singapore (NUS), Nanyang Technological University (NTU), or Singapore Management University (SMU) earning 0.5% to 1.0% higher yields. Student housing demand remains consistently strong, and parents are often willing to pay premium rents for convenient, safe accommodations for their children.
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The cumulative effect of multiple proximity factors can be significant, but yield differences solely due to location rarely exceed 1% unless multiple premium factors align in a single property.
What monthly rental income can you expect for different bedroom configurations in high-yield areas?
| Area/District | 1-Bedroom (S$) | 2-Bedroom (S$) | 3-Bedroom (S$) |
|---|---|---|---|
| Geylang (District 14) | 2,000 – 3,200 | 2,800 – 4,200 | 4,000 – 6,500 |
| Woodlands (District 25) | 1,400 – 3,200 | 2,000 – 4,000 | 4,000 – 6,500 |
| Alexandra/Commonwealth (District 3) | 2,900 – 3,200 | 3,800 – 4,000 | 5,000 – 7,000 |
| Hougang/Punggol/Sengkang | 1,800 – 2,800 | 2,500 – 3,800 | 3,800 – 5,500 |
| Jurong East/West | 1,600 – 2,600 | 2,200 – 3,500 | 3,500 – 5,200 |
How much do purchase prices vary between high-yield and low-yield neighborhoods?
Purchase price variations between high-yield and low-yield neighborhoods are substantial, directly impacting investment entry costs and potential returns.
High-yield districts like Geylang (District 14) and Woodlands (District 25) typically feature purchase prices ranging from S$1,150 to S$1,700 per square foot. These affordable entry points make it possible for investors to acquire decent-sized units with relatively modest capital commitments while achieving attractive rental yields.
Prime districts with lower yields, such as Orchard (District 9) and Marina Bay (District 1), command significantly higher prices from S$2,300 to S$3,200+ per square foot. Some ultra-prime developments in these areas can exceed S$4,000 per square foot, making them accessible primarily to high-net-worth investors.
The entry cost difference represents 30% to 50% lower investment requirements in high-yield areas compared to prime districts. For example, a 1,000 square foot 2-bedroom condo in Geylang might cost S$1.5 million, while a similar unit in Orchard could cost S$2.8 million or more.
This price differential means investors can often acquire larger units or multiple smaller properties in high-yield areas for the same capital outlay required for a single prime district property. The strategy of focusing on high-yield areas allows for better diversification and potentially higher overall portfolio returns.
Mid-tier areas in the Rest of Central Region typically price between S$1,700 and S$2,300 per square foot, offering a middle ground for investors seeking balance between yield and location prestige.
What are the key costs that reduce gross rental yield to net yield?
Several significant costs substantially reduce gross rental yields to net yields, often cutting returns by 1.5% to 2.0% annually.
Maintenance fees represent one of the largest ongoing expenses, ranging from S$300 to S$1,500 per month depending on the property type and facilities. Mass-market condos typically charge S$300 to S$600 monthly, while luxury developments with extensive amenities can charge S$800 to S$1,500 or more per month.
Property tax on non-owner-occupied residential properties ranges from 12% to 36% of the annual value, which is typically 5% to 8% of the property's market value. For a S$1.5 million condo with S$48,000 annual rental income, property tax could amount to S$5,760 to S$17,280 annually.
Income tax on rental income applies at marginal personal tax rates, reaching up to 22% for Singapore residents and higher rates for non-residents. Foreign investors face additional tax obligations that can significantly impact net returns.
Agent fees for property management and tenant placement typically cost half to one month's rent annually, or approximately S$2,000 to S$4,000 for most properties. Some investors choose to self-manage to reduce these costs, but this requires significant time investment.
Additional costs include insurance (S$500 to S$2,000 annually), minor repairs and maintenance (S$1,000 to S$3,000 annually), and occasional vacancy periods between tenants.
A typical gross yield of 3.5% often translates to a net yield of 1.5% to 2.0% after accounting for all expenses and taxes.
What yield differences exist between new launch condos and resale units?
New launch condos typically deliver lower initial rental yields compared to resale units, with the gap ranging from 0.5% to 1.0% in favor of resale properties.
New launch developments often achieve gross yields of 2.5% to 3.0% due to their premium pricing during pre-launch and launch phases. Developers price new projects to capture future appreciation potential, resulting in higher per-square-foot costs that compress immediate rental returns.
Resale condos generally provide higher immediate yields of 3.2% to 4.0% because their market prices have already absorbed initial depreciation and reflect current market conditions more accurately. Buyers can often negotiate better pricing on resale units, particularly if the seller is motivated or the property has been on the market for an extended period.
New launches face additional yield challenges due to construction delays and inability to generate rental income until TOP (Temporary Occupation Permit) is obtained. Investors must carry financing costs and maintenance fees during this period without offsetting rental income.
However, new launch condos may justify their premium pricing through superior capital appreciation potential over the medium to long term. Modern amenities, energy-efficient systems, and contemporary designs often attract higher-quality tenants and support rent escalation over time.
The decision between new launch and resale should consider individual investment timeframes, risk tolerance, and capital availability beyond simple yield calculations.
Are freehold or leasehold condos better for rental yield in Singapore?
Leasehold condos consistently deliver higher rental yields than freehold properties, typically outperforming by 0.3% to 0.5% annually.
The yield advantage stems primarily from purchase price differences rather than rental income variations. Leasehold properties typically cost 15% to 20% less than comparable freehold units in similar locations, while commanding essentially identical rental rates from tenants.
For example, a freehold condo might achieve a 2.8% gross yield while a similar leasehold property in the same area delivers 3.3% gross yield. Tenants generally do not pay rental premiums for freehold tenure, as the leasehold duration (usually 99 years) far exceeds typical rental agreement lengths.
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Leasehold properties make particular sense for yield-focused investors with investment horizons under 20-30 years. The lower entry cost allows for better diversification or higher leverage, potentially amplifying overall portfolio returns.
Freehold properties offer advantages in terms of financing options, resale liquidity, and long-term value preservation, but these benefits come at the cost of reduced immediate rental yields. The choice depends on individual investment objectives and timeframes.
How do Singapore rental yields compare to other regional investment hubs?
Singapore offers moderate rental yields compared to other Southeast Asian investment destinations, but provides superior market stability and liquidity.
Singapore condo yields of 3.2% to 3.4% gross (1.5% to 2.0% net) position the market as a stable, lower-yield option compared to regional alternatives. The controlled supply environment and strong regulatory framework support consistent returns but limit yield potential.
Kuala Lumpur delivers gross yields of 4.0% to 5.0%, but net returns are often lower due to higher property taxes, maintenance costs, and currency risks for foreign investors. The Malaysian market offers higher nominal yields but greater volatility and liquidity challenges.
Bangkok provides gross yields ranging from 4.0% to 6.0%, with net yields of 2.5% to 4.0% after local taxes and expenses. The Thai market offers attractive yields but carries additional risks related to foreign ownership restrictions and regulatory changes.
Jakarta presents gross yields of 6% to 8%, but these vary widely based on location and property quality. Higher yields reflect greater market risks, including political instability, currency volatility, and infrastructure challenges.
Singapore's key advantages include political stability, transparent legal systems, strong tenant protection laws, and excellent liquidity for both rental and resale markets. These factors justify lower yields for risk-averse investors seeking steady, predictable returns.
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 trends could affect rental yields in the next 12-24 months?
Several key trends will likely influence Singapore condo rental yields through 2026 and early 2027, with implications varying by location and property type.
Supply increases in the Outside Central Region may temporarily increase vacancy rates and moderate rent growth in suburban areas. Approximately 9,000 new units are expected to complete in H2 2025, with most located in OCR districts. This additional supply could pressure yields in oversupplied areas while supporting yields in undersupplied prime locations.
Rental demand remains supported by multiple factors including continued expatriate arrivals, international student enrollment, and HDB upgraders seeking private housing. Singapore's position as a regional business hub continues attracting multinational corporations and their employees, maintaining steady tenant demand.
Expat-heavy areas like Districts 9, 10, and 11 may see stable or rising demand as companies restore pre-pandemic expatriate packages and Singapore remains a preferred regional headquarters location. These areas could outperform the broader market for rental growth.
Government cooling measures continue influencing investment patterns, with higher Additional Buyer's Stamp Duty rates potentially reducing speculative demand and supporting rental yields as fewer units remain vacant for capital appreciation strategies.
Interest rate environments will significantly impact investor calculations, with potential rate stabilization or reduction improving property financing costs and supporting yield attractiveness relative to fixed-income alternatives.
As we reach mid-2025, rental yield sustainability appears strongest in well-located mass-market properties with strong tenant fundamentals and limited new competing supply.
How does ownership structure affect rental strategy and potential returns?
Ownership structure significantly impacts rental yields and investment strategies through tax implications and regulatory constraints.
Foreign ownership faces the highest barriers with 60% Additional Buyer's Stamp Duty (ABSD) on all residential property purchases. This substantial upfront cost dramatically reduces effective yields and overall returns, making Singapore property investment economically challenging for most foreign buyers unless they plan extended ownership periods.
Singapore citizens and permanent residents face no ABSD on their first residential property purchase, allowing maximum capital efficiency and yield optimization. However, subsequent property purchases incur ABSD rates of 20% for the second property and 30% for the third and beyond.
Multiple property ownership by locals creates additional tax burdens that reduce net yields. Property tax rates are higher for non-owner-occupied properties, and rental income taxation can become significant for investors with multiple units generating substantial rental income streams.
Single-unit owners benefit from greater flexibility in rental strategy, including options for short-term corporate housing or furnished rentals that can command premium rates. Multiple-unit owners often focus on longer-term tenancies to reduce management complexity and costs.
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Corporate ownership structures may offer some tax advantages for high-income individuals, but these require careful professional advice to ensure compliance and optimize after-tax returns.
What realistic annual rental income can you expect from a S$1 million condo investment?
| Performance Segment | Annual Rental Income (S$) | Gross Yield (%) | Typical Location |
|---|---|---|---|
| Low-performing | 24,000 – 28,000 | 2.4 – 2.8 | Prime districts, luxury properties |
| Average | 30,000 – 34,000 | 3.0 – 3.4 | Mid-tier RCR areas |
| High-performing | 36,000 – 42,000 | 3.6 – 4.2 | Mass-market OCR districts |
| Exceptional | 40,000 – 45,000 | 4.0 – 4.5 | Optimal location + property type |
| Net yield (after costs) | 15,000 – 22,000 | 1.5 – 2.2 | Realistic expectations |
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 condo rental market offers stable, moderate yields for investors seeking predictable returns in a highly regulated environment.
Success in Singapore property investment requires careful selection of high-yield districts, realistic expectations about net returns after costs, and thorough understanding of ownership implications for different investor categories.
It's something we develop in our Singapore property pack.
Sources
- Global Property Guide - Singapore Rental Yields
- BambooRoutes - Singapore Condo Investment Analysis
- PropertySpace SG - High Rental Yield Condos 2025
- Singapore Property Data - District Analysis
- SG Luxury Homes - Prime District Rental Yields
- MoneySmart - Singapore Rental Cost Guide
- The Continuum - Singapore Condo Investment 2025
- LinkedIn - New Launch vs Resale Condos Analysis
- SG Luxury Condo - Freehold vs Leasehold Properties
- Darren Ong - Freehold vs Leasehold Property Guide