Gross yield is the brochure number. Net yield is what actually pays you.
The headline “gross yield” ignores property tax, maintenance, agent fees and vacancy — usually about 1–1.3 points. The income sweet spot is the 3.5–4% gross band, where yield and appreciation coexist.
Figure 1
Gross vs net yield, after property tax, maintenance, fees & vacancy
Illustrative · gross from URA rental vs resale; net = gross less ~1–1.3pp for tax, maintenance, fees & vacancy
Buy on net yield, not the gross headline.
Gross yield ignores the non-owner-occupier property tax (12–36% of Annual Value), maintenance/sinking fund, agent fees and vacancy — together roughly 1–1.3 percentage points. The income sweet spot is the 3.5–4% gross band, where rent and capital appreciation coexist; ultra-high gross yields usually signal a reason (short lease, weak location), and prime yields are too thin for income. Always model net.
POV Guy take: never commit to a buy-to-let on gross yield. The net number — after tax, fees and vacancy — is the one that lands in your account.
Full breakdown — the data behind it
The CCR yield penalty is structural. D09 and D10 are capital appreciation bets, not income plays.
- D09 (Orchard, River Valley): 2.5% gross. D10 (Bukit Timah, Holland): 2.6% gross. Lowest yielding districts in Singapore.
- D01 (Raffles Place, Marina): 2.8%. D04 (Sentosa, Harbourfront): 2.7%. The CCR belt is uniformly compressed.
- At 2.5% gross, a $3M Orchard condo generates $75K/year rent — before tax, management, and maintenance. Net yield: sub-1.5%.
Buying CCR for yield is a category error. The CCR premium is priced into the purchase value — you pay for location, prestige, and future capital upside. Investors who buy D09 expecting rental income to carry the mortgage are in for a structural shortfall every single month.
D14 leads at 4.3% — but high yield always comes with a reason. Know the reason before you buy.
- D14 (Geylang, Paya Lebar): 4.3% gross. D08 (Farrer Park, Little India): 4.2% gross.
- High yield in these districts isn't magic — it's a function of lower purchase prices relative to rental demand, not elevated rents.
- The yield premium comes paired with lower capital appreciation, slower liquidity, and a narrower resale buyer pool.
Yield-chasing in D14 without understanding the exit is a one-way trade. The income is real. But if you need to sell in 8 years, the buyer pool for a D14 resale condo is structurally smaller than D15 or D19. Yield and liquidity are rarely maximised simultaneously in the same district.
The 3.5–4% band is where income AND capital appreciation actually coexist.
- D05 (3.5%), D07 (3.8%), D12 (3.8%), D18 (3.8%), D19 (3.9%), D25 (3.8%), D27 (4.0%).
- These districts generate meaningful rental income while sitting in corridors with MRT expansion, population growth, and new launch pipeline.
- Crucially, resale liquidity in D18, D19, and D25 is strong — HDB upgrader demand underpins the buyer pool on exit.
D19 (Serangoon, Sengkang) and D18 (Tampines, Pasir Ris) represent the most balanced private rental investment case in Singapore right now. Income sufficient to cover mortgage at 3.5% fixed rate, capital upside from infrastructure, and an exit market supported by the largest upgrader demographic in Singapore.
Gross yield is the starting number. Net yield is the one that determines whether you're actually profitable.
- Gross yield = annual rent ÷ purchase price. Net yield subtracts: property tax (10–20% of annual rental value), agent fees (half-month), management (8–10% of rent), maintenance, and insurance.
- In practice: a 4.0% gross yield project nets 2.5–3.0% after all costs. A 2.8% gross yield nets below 1.5%.
- Mortgage at 3.5% fixed: you need at least 3.8% gross yield to be cash-flow neutral before tax. Most CCR projects don't clear this bar.
Agents who quote gross yield without netting it down are presenting an incomplete picture. The question that actually matters is: does the net rental income cover the monthly mortgage instalment? For most CCR purchases today — it doesn't. For well-chosen OCR purchases in D18/D19 — it does, by a margin.
2BR units are the maximum total-return bedroom type. Not 1BR yield, not 3BR comfort.
- 1BR: highest yield psf (4.5–5.5% in strong districts) but narrowest tenant pool and lowest exit liquidity.
- 2BR: 3.5–4.5% yield in OCR/RCR, widest tenant pool (couples, young professionals, expats on company packages), most liquid on resale.
- 3BR: 3.0–3.8% yield, stronger family demand but longer void periods and higher maintenance costs at turnover.
For a first investment property, 2BR in an OCR district yielding 3.5%+ is the most defensible position in the Singapore private rental market. The yield is real, the tenant pool is broad, and the exit is liquid. 1BR yields more on paper; the vacancy risk and exit pool narrow the advantage quickly.
The rental correction is here. Q3 2026 renewals are where investors find out what their yield actually is.
- Singapore private rents surged 35–40% from 2021 to 2023 driven by construction delays, expat re-entry, and BTO deferrals.
- Projects completed in 2023–2024 that entered the market at peak rents are now seeing 8–15% rent reductions at renewal.
- Investors who underwrote yields based on 2022–2023 peak rents are holding assets that cash flow below their model — and may not know it yet.
The rental income story that was sold at launch for many 2021–2022 new launches is not the rental income story playing out in 2026. Before buying any resale condo on an "income" thesis, verify the trailing 12-month rental data from URA directly — not the developer's projected rental figures. The gap between the two is where disappointment lives.
Common questions
What is a good rental yield for a condo in Singapore?
Gross rental yields for private condos typically run about 3–4.5%, with the income “sweet spot” around 3.5–4% gross, where rental return and capital appreciation tend to coexist. Prime (CCR) units usually yield less (often under 3% gross), while unusually high gross yields often signal a shorter lease or weaker location. What matters is net yield after costs.
What is the difference between gross and net rental yield?
Gross yield is annual rent divided by purchase price — the brochure number. Net yield subtracts the real holding costs: non-owner-occupier property tax (12–36% of Annual Value), maintenance/sinking fund, agent commission, insurance and vacancy. In Singapore that gap is commonly around 1–1.3 percentage points, so a 4% gross yield can be roughly 2.7–3% net.