Over the last several years, the rental market in Singapore has offered modest but stable gross returns, a feature that continues to hold in 2025, according to the latest data from Global Property Guide. As of Q3 2025, the combined gross rental yield for private apartments across the city-state averages 3.36 percent annually.
That number, however, conceals a meaningful variation depending on location, unit size, and the trade-off between capital cost and rental income. When you strip out consumer costs like maintenance fees, taxes, and vacancy periods, net yields tend to drop by about 1.5 to 2 percentage points.
Think of these numbers as a simple story of price versus rent, and how that ratio shapes returns in the Singapore housing market.
For a 1-bedroom apartment, the typical purchase price of about US$900,000 and a monthly rent near US$2,740 translate into an annual rent of roughly US$32,880. When you compare that yearly rent to the purchase price, you get a gross rental yield of about 3.65 percent. This is the highest among the three categories because smaller homes usually cost less to buy but still attract steady rental demand from singles, young professionals, and expatriates.
For a 2-bedroom home, the median price rises sharply to around US$1.29 million, while the typical monthly rent moves up more modestly to about US$3,520 or roughly US$42,240 annually. Since the purchase price grows faster than the rent, the yield softens to about 3.27 percent. These homes are often preferred by couples or small families, offering stability but slightly lower rental efficiency relative to capital invested.
In the case of 3-bedroom apartments, the gap widens further. Prices climb to about US$1.88 million, while monthly rents average near US$4,930, or around US$59,160 per year. Even though the rent in absolute terms is high, the large upfront cost pushes the gross yield down to about 3.15 percent, the lowest among the three categories. These units cater mainly to families and senior expatriates who value space over rental efficiency.
What this pattern shows is a classic real-estate rule at work:
as home sizes increase, capital values rise faster than rents, which leads to lower percentage yields. Smaller units give better rental returns relative to their price, while larger homes often deliver better lifestyle value and long-term capital appreciation rather than high rental income.
It is also important to remember these are gross yields, meaning they do not account for expenses such as maintenance charges, property taxes, agent fees, repairs, or occasional vacancies. Once these costs are deducted, net yields typically fall by 1.5 to 2 percentage points, pushing real investor returns closer to the 1.5–2 percent range, especially for larger units.
Looking across districts provides a clearer sense of where yield tends to be higher:
- In suburban and heartland areas like Hougang, Punggol and Sengkang, rental yields are the strongest at around 60 percent. Property prices are relatively lower here, while rental demand from young professionals and families remains steady.
- Prime central locations such as Tanglin, Holland and Bukit Timah record lower yields of about 06 percent. High property prices reduce returns even though these areas attract wealthy tenants.
- Mid-tier residential zones like Alexandra and Commonwealth offer balanced yields of roughly 51 percent, supported by good connectivity and stable demand.
- Lifestyle-driven districts such as Orchard, River Valley and East Coast typically deliver yields between 1 and 3.4 percent, reflecting a trade-off between premium locations and high capital values.
This shows how lower-cost suburban homes tend to give better rental efficiency, while central luxury areas prioritise prestige and long-term value over yield.
What emerges clearly: the properties delivering the best gross yields tend to be smaller units in more modest-priced, outer residential districts rather than luxury condos in high-cost, central areas. This pattern mirrors conventional real-estate wisdom: lower price means better yield-to-cost ratio, especially when demand from working professionals or expatriates remains robust.
Still, putting these numbers in context is important. Singapore’s rental yields, even at their highest, tend to look modest when compared with many regional and international real-estate markets. But the city makes up for that with relative stability, consistent demand (especially from expatriates and professionals), and minimal market volatility, qualities many investors value as much as yield percentage.
And it’s not just yield: Singapore’s property value trajectory, vacancy rates, and tenant demand dynamics matter for long-term investors. High-end central districts may yield less in terms of percentage, but they often offer greater chances of capital appreciation, prestige, and premium tenant demand, especially from international companies, expatriates and affluent renters.
Meanwhile, outer and suburban districts, where gross yields are strongest, attract a different demographic: younger professionals, small families and middle-income renters who prefer lower monthly rents and appreciate proximity to transit, schools, and amenities more than central prestige.
For someone evaluating Singapore real estate today, these patterns suggest a trade-off between yield, capital cost, location, and target renter profile. Smaller, suburban condos may offer better cash-flow yields. Central luxury units may demand more upfront capital but could deliver more in capital appreciation and stable tenancy among expatriates or corporate tenants.
Singapore’s rental market remains a steady, mature ecosystem. Yields are modest but predictable. Investors seeking stable, low-risk returns might find heartland or suburban condos attractive. Buyers looking for prestige, long-term value growth, or high-end tenants may still gravitate toward central districts, even if their immediate yield is lower.
