PropertySmart SG

Singapore Rental Yield Calculator

Estimate the potential gross and net rental yield of your investment property in Singapore.

Typically 10-20% of Annual Value for non-owner occupied.

Understanding Your Rental Yield

Rental yield is a key metric used by property investors to determine the potential return on investment from a rental property. It's expressed as a percentage of the property's value.

Gross Rental Yield

Gross Rental Yield is the annual rental income generated by the property, expressed as a percentage of the property's purchase price or market value. It's a quick way to compare potential returns before considering expenses.

Formula: (Annual Gross Rent / Property Price) * 100%

Net Rental Yield

Net Rental Yield provides a more realistic picture of your return as it accounts for various operating expenses associated with owning and renting out the property. These expenses typically include property taxes, maintenance fees, insurance, agent commissions (if any), and periods of vacancy (though vacancy is not directly factored into this calculator's expense inputs).

Formula: ((Annual Gross Rent - Total Annual Expenses) / Property Price) * 100%

Factors Affecting Rental Yield in Singapore:

  • Property Location: Proximity to amenities, transport links (MRT), schools, and business districts can command higher rents.
  • Property Type & Size: Condominiums, HDB flats, and landed properties have different yield potentials. Smaller units often have higher yields than larger ones in the same development.
  • Market Conditions: Overall rental demand and supply in Singapore significantly impact rental rates and yields.
  • Property Condition & Age: Well-maintained and newer properties may attract higher rents and fewer repair costs.
  • Operating Expenses: Higher property taxes, maintenance fees, and repair costs will lower your net yield.

While this calculator provides a good estimate, actual yields can vary. It's important to do thorough research and consider all potential costs and market factors. For a broader view of property purchase costs, try our Full Property Buying Calculator.

Note on Average Yields: Average rental yields in Singapore fluctuate. Historically, gross residential yields have ranged between 2-4%. However, specific yields depend heavily on the factors mentioned above. For current market sentiments and district-specific yield information, it's best to consult recent property market reports, experienced real estate agents, or property portals that provide such data.

Rental Yield FAQs

What expenses should I include for Net Rental Yield calculation?

Common expenses include annual property tax, monthly maintenance fees (for condos/apartments), landlord's property insurance, costs of minor repairs and upkeep, and agent fees for finding tenants (if applicable). This calculator allows you to input these as annual figures.

Does rental yield account for capital appreciation?

No, rental yield specifically measures the return from rental income relative to the property's value. Capital appreciation (or depreciation) is a separate component of the total return on a property investment and is realized when the property is sold.

How can I improve my rental yield?

Strategies include ensuring competitive rental rates, minimizing vacancy periods, managing operating expenses efficiently, and making cost-effective improvements to the property to attract good tenants and potentially higher rent.