Singapore Rental Yield by District: 2026 Data for Condo Investors

The most common error in Singapore rental yield analysis is comparing gross yield numbers without accounting for the price you paid to get them. A 4% yield in a district where you paid S$2,500 per square foot is a very different investment from a 4% yield at S$1,250 psf — because the capital at risk is twice as large.

Understanding yield by district means understanding both the numerator (rent) and the denominator (capital value) — and which direction each is moving.

2026 Rental Yield Data by District

Source: Singapore Property Data Index (2025/2026)

The CCR Yield Inversion: Why Prime Costs More but Yields Less

Districts 9 and 10 attract the highest absolute rents in Singapore — S$7,925 and S$8,438 per month respectively. But their gross yields (3.0%-3.98% and 2.7%-3.85%) are lower than Districts 2 and 25.

This is the yield inversion, and it is a structural feature of Singapore's property market rather than an anomaly:

• In prime CCR districts, the capital value per square foot (S$2,300-S$2,500 psf) has been driven up by a premium for prestige, freehold tenure, and location scarcity
• Rents have not risen proportionally to prices in the luxury segment
• The net result: prime assets deliver capital preservation and moderate rental yield, not yield maximisation

For District 10 specifically, a significant portion of the stock is freehold landed and luxury condominium. Buyers of these assets typically prioritise capital stability and generational wealth transfer over yield optimisation.

District 2: The Outlier with Yield and Location

District 2 (Tanjong Pagar, Anson, CBD fringe) is notable for achieving yields of 3.82%-4.07% at capital values of S$2,450 psf — delivering both central location and competitive yield. This district benefits from:

• Strong corporate tenant demand from CBD-adjacent professionals who prefer the CBD fringe for the walkability to Grade A offices
• A mix of newer integrated developments (office, retail, residential) generating consistent rental demand
• No significant new residential land releases in the core CBD, constraining supply

OCR Districts: Highest Yield on Capital, Lowest Absolute Rent

District 25 (Woodlands, Admiralty) shows gross yields of 3.40%-4.00%+ at S$1,250 psf — the highest yield-to-cost ratio in the dataset. But the absolute monthly rent (S$3,600) is less than half the S$7,800 achieved in District 2.

For investors focused on yield, OCR makes mathematical sense. But there are specific risks to note:

• The tenant pool is more price-sensitive and less corporate, meaning vacancy risk is higher if the rental market softens
• Capital growth has historically lagged prime districts on a per-annum basis
• The OCR surge in Q1 2026 (+2.2% in a quarter) reflects HDB upgrader demand, not rental-driven yield expansion — PSF has risen, which will compress future yields from these districts if it continues

Gross Yield vs. Net Yield: The Gap Is Larger Than Most Investors Model

The yield numbers above are gross — they do not account for running costs. Net yield typically runs 0.5%-1.5% below gross yield depending on the property and tenancy structure.

Costs to deduct from gross yield:

• Property tax: Owner-occupied annual value versus non-owner-occupied. Investment properties are assessed at non-owner-occupied rates — typically higher. The property tax bill depends on the annual value assigned by IRAS, not your actual rent.
• MCST maintenance fees: Varies significantly by development. A luxury CCR condo may charge S$500-S$1,000/month in maintenance fees. An OCR mass-market development might be S$250-S$400.
• Property management fees: If using a professional agency, typically 6%-10% of gross monthly rent.
• Vacancy periods: A realistic assumption of one month per year vacancy reduces effective gross yield by approximately one-twelfth (around 8.3% of annual rental income).
• Repairs and maintenance: Budget S$1,000-S$3,000 per year for routine maintenance in a well-maintained condominium.

A property showing 4% gross yield in District 2 might deliver 2.8%-3.2% net after all costs — which, against the capital employed (purchase price plus BSD and ABSD), represents the actual return on invested capital.

Post-Rental-Surge Normalization: What to Model for 2026 and Beyond

The exceptional rental yields of 2022-2023 — when the post-COVID return of foreign workers combined with delayed condo completions to produce acute supply shortage — have normalized. The backlog of condominiums completing in 2024-2025 added supply, tenant choice increased, and asking rents softened from their peaks.

For investment modelling in 2026, the prudent approach is:

• Model current prevailing rents (available from actual transacted rental listings on 99.co or PropertyGuru), not 2022-2023 peak rents
• Apply a 5%-10% vacancy/renewal gap assumption annually
• Do not assume rental yield expansion — if rates remain elevated, yields are more likely to compress as prices continue rising in the OCR

The Singapore Investment Property Guide includes a rental yield worksheet covering gross yield, net yield, after-tax yield, and yield-on-equity — distinguishing between return on the property value and return on the cash actually invested (which is a much smaller number after financing).

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