Rental yield tells you how much a property earns each year as a percentage of its price. In Singapore, a typical HDB flat earns a NET yield of about 4-6% after real costs. That headline number hides a long list of deductions that the average listing sites leave out. Here is a plain-English breakdown of gross vs net yield, the costs to subtract, and a worked example so you can do the maths yourself.
Gross rental yield = annual rent divided by property price, with nothing taken out. It looks impressive, which is why agents and listing sites love it. But gross yield overstates what you actually keep.
Net rental yield = annual rent minus every real cost of owning and renting the flat, divided by price. This is the number that matters for an investor, because it is what hits your bank account after vacancy, fees, tax and upkeep.
A common mistake: comparing your net yield to a listing site's gross figure. Always compare like for like. If a flat shows '7% yield', check whether that is gross or net before you trust it.
To get net yield, subtract these recurring costs from the annual rent:
- Vacancy: roughly 1 month per year with no tenant (about 8% of annual rent lost).
- Agent fee: about 1 month's rent per lease, typically paid by the landlord.
- Maintenance and repairs: budget around 5% of annual rent for wear and tear, aircon servicing, minor fixes.
- Property tax: levied each year on the rental value of the property.
- Insurance: home content and building cover.
After these, a flat that looks like 7% gross often lands near 4-6% net. That gap is normal, not a sign of a bad deal - it is just honest maths.
Take a S$600,000 HDB flat renting for S$2,400 a month in a mid-range town.
Step 1 - Gross rent: S$2,400 x 12 = S$28,800 per year.
Step 2 - Gross yield: S$28,800 / S$600,000 = 4.8%.
Step 3 - Subtract costs: 1 month vacancy (S$2,400) + 1 month agent fee (S$2,400) + 5% maintenance (~S$1,440) + property tax and insurance (say ~S$1,500). Total deductions ~S$7,740.
Step 4 - Net rent: S$28,800 - S$7,740 = S$21,060.
Step 5 - Net yield: S$21,060 / S$600,000 = 3.5%.
So the same flat is 4.8% gross but about 3.5% net. Run the same five steps on any flat you are comparing - price, monthly rent, deductions, divide.
A typical NET HDB rental yield sits around 4-6% per year. Anything well above that range is a yellow flag, not a free lunch.
High-yield units are usually older flats with shorter remaining lease, in less central towns, or in blocks that are harder to tenant. The higher rent-to-price ratio comes from a lower price, and that lower price often reflects lease decay or weaker resale demand later.
Cheaper rental towns such as Yishun, Bukit Batok and Sembawang tend to show stronger yields because prices are lower while rents hold up. Pricier central towns show lower yields because the price denominator is large.
Net yield is only one factor. Also weigh lease length, resale liquidity, and how long you intend to hold.
HDB flats generally produce higher net yields than private condos, because the entry price is far lower for a similar monthly rent. A whole HDB unit rents for roughly S$2,900-S$3,600 per month depending on town, while a condo of similar size can cost two to four times the price to buy.
Condos appeal for capital appreciation, facilities and foreign-tenant demand, but their net rental yield is usually lower than HDB. If pure rental income is your goal, HDB is typically the stronger yield play.
Stamp duty, ABSD, and mortgage rules all affect your real return and change over time - check current figures before deciding.
Net yield does not include your loan interest, so it is not the same as cash-on-cash return. If you are mortgaged, your actual return on cash invested can be higher or lower than the net yield depending on rates and leverage.
Property tax, rental income tax rules and agent fees shift year to year. Treat any yield figure as an estimate, not financial advice.
What is a good net rental yield for an HDB flat in Singapore?
A typical NET HDB rental yield is around 4-6% per year after vacancy, agent fee, maintenance, property tax and insurance. Anything well above that usually reflects an older or shorter-lease unit.
How do you calculate rental yield?
Gross yield = annual rent divided by price. Net yield = (annual rent minus vacancy, agent fee, maintenance, property tax and insurance) divided by price. For example, a S$600k flat at S$2,400/mo is 4.8% gross but about 3.5% net.
What deductions turn gross yield into net yield?
Subtract about 1 month of vacancy per year, 1 month agent fee per lease, around 5% of rent for maintenance, plus property tax and insurance. After these, a 7% gross figure often lands near 4-6% net.
Is HDB or condo rental yield higher in Singapore?
HDB flats usually produce higher net yields than condos, because the purchase price is much lower for comparable monthly rent. Condos offer facilities and appreciation potential but a lower yield on price.
Why are high-yield HDB flats risky?
An unusually high yield often comes from a lower price, which can reflect an older flat, shorter remaining lease, or weaker resale demand in that town. Weigh lease length and resale liquidity alongside yield.
Skip the spreadsheet and ask FindHomeLah in plain English - try "best yield in Bedok" or "cash on cash for 800k at 3000" at https://findhomelah.com.
Open FindHomeLah →Educational estimates from public HDB data — not financial advice. SG rules verified July 2026. All guides · Terms · Privacy