By Winfred Quek · CEA R073319H · Published 26 October 2026
Facts verified: 26 October 2026 · Sources listed below
Many private condo landlords judge their rental by the price they paid. "I bought at $1.6 million and the rent is $5,500, so I earn about four percent." That feels reassuring, but once you are weighing whether to keep renting or sell, the useful question is what your money is earning today, where it sits today. This page shows how to work that out with public reference rates. It makes no price or rent forecast. For HDB owners, see the HDB rent out versus sell analysis. For the wider question of exit timing, see when to sell an investment property.
Why your purchase price is the wrong base
Divide rent by what you paid and you learn how the original purchase has performed. Divide it by what the unit could sell for now and you learn what the equity locked inside the unit is earning. Only the second figure can be compared with other places that equity could go.
Selling would free cash, after the loan, selling costs and any CPF refund. Holding leaves that value inside the property, and the rent is what you are paid for that. If the unit has risen since you bought it, the same rent sits on a bigger base, so the yield on today's value is lower than on cost. If it has fallen, the reverse is true. This is a framing tool, not a verdict: the number shows what you are paid for holding, so you can weigh it against your own plans. Gross and net yield mechanics are in how rental yield is actually computed, and the loan side in break even rental yield explained. This page only changes the denominator.
Step 1: work out net rent, not the rent on the tenancy
Gross rent flatters. Start with the rent you actually collect in a year and take off what holding the unit costs you. Four items matter.
- Vacancy and gaps. Count the months the unit sits empty between tenants. URA reports a market wide vacancy rate for completed private homes, excluding ECs, of 7.2% at the end of 3Q 2026, up from 6.4% in the previous quarter. That is a market figure, so use your own history if you have one.
- Property tax. A rented condo is taxed at the non owner occupier rates, not the lower owner occupier ones. IRAS lists 12% on the first $30,000 of annual value, 20% on the next $15,000, 28% on the next $15,000 and 36% above $60,000, effective 1 January 2024. Check your own notice for annual value.
- Running costs. Maintenance fees, sinking fund, agent fees on each new tenancy, repairs and furnishing top ups. These are owner specific, so the example uses assumed amounts.
- Income tax on the rent. IRAS says landlords can claim 15% of gross rent as deemed expenses, and can still claim mortgage interest on the loan taken for the tenanted property, or choose to claim actual expenses instead. Your tax then depends on your total income, so the example stops before income tax.
Source: URA, Release of 3rd Quarter 2026 real estate statistics, 23 October 2026, ura.gov.sg/news/media/pr26-73, checked 26 October 2026. Source: IRAS, Property tax rates, iras.gov.sg property tax rates, checked 26 October 2026. Source: IRAS, I have rented out my property, iras.gov.sg rented out my property, checked 26 October 2026.
Step 2: divide by what the unit could sell for today
Use a figure you would genuinely expect to be paid: recent caveat prices for similar units in your project, a bank valuation or an agent's comparison give a starting range. The rental yield tool can be run twice, once with your cost and once with today's value. If you owe a loan, also look at net rent after interest divided by your equity, meaning today's value less the loan. Both versions appear below.
Illustrative worked example (assumed figures, not a forecast)
These numbers are round and invented to show the method. They are not a market claim about any project, and your own figures will differ.
| Assumption | Amount |
|---|---|
| Purchase price (cost) | $1,600,000 |
| What it could sell for today (assumed) | $2,000,000 |
| Monthly rent | $5,500 |
| Vacancy per year (assumed) | 1 month |
| Annual value for property tax (assumed) | $66,000 |
| Maintenance fees and upkeep (assumed) | $5,000 a year |
| Agent fees and small repairs (assumed) | $3,000 a year |
| Outstanding loan, if any (assumed) | $800,000 at 2.0% a year |
| Line | Per year |
|---|---|
| Rent for 12 months | $66,000 |
| Less one month vacancy | minus $5,500, leaving $60,500 |
| Less property tax at non owner occupier rates on $66,000 | minus $12,960 |
| Less maintenance fees and upkeep | minus $5,000 |
| Less agent fees and small repairs | minus $3,000 |
| Net rent, before income tax | $39,540 |
| Net yield on cost ($1,600,000) | 2.47% |
| Net yield on today's value ($2,000,000) | 1.98% |
| Net rent after $16,000 loan interest, on equity of $1,200,000 | $23,540, which is 1.96% |
The property tax line follows the IRAS bands: $3,600 on the first $30,000, $3,000 on the next $15,000, $4,200 on the next $15,000 and $2,160 on the last $6,000, which is $12,960. It is the largest single cost here, and many landlords underestimate it.
Same unit, same tenant, same rent. The gross figure on cost would be 4.1% and the net figure on cost is 2.47%, yet on today's value the net figure is 1.98%. Only the question changed. The assumed 2.0% loan rate is about the same as the net yield on the whole unit, so the rent roughly covers the interest and not much more. Your numbers may look different, which is why you run them.
What could the freed equity do instead?
To compare, you need reference points. Below are public, official rates as at 26 October 2026. They are context for the method, not suggestions, and each comes with its own limits.
| Reference | Rate |
|---|---|
| CPF Ordinary Account interest, 1 Oct to 31 Dec 2026 | 2.5% a year |
| CPF Special, MediSave and Retirement Account interest, same period | 4% a year |
| Singapore Savings Bond, October 2026 issue (GX26100Z): first year interest | 1.65% |
| Same bond, average return per year if held 10 years | 2.32% |
| 3 month compounded SORA, published 23 October 2026 | 1.2568% |
Source: CPF Board, Earning attractive interest, cpf.gov.sg earning attractive interest, checked 26 October 2026. Source: MAS, SSB Interest Rates, eservices.mas.gov.sg SSB interest rates, checked 26 October 2026. Source: MAS, Domestic Interest Rates, eservices.mas.gov.sg domestic interest rates, checked 26 October 2026.
Read the table with care.
- CPF rates apply only to money inside CPF. You cannot simply move sale proceeds into the Special Account. The part of a sale that goes back to your CPF accounts, with the accrued interest you must refund, depends on how you paid. Confirm the amounts with CPF Board.
- The savings bond is a capital protected, government backed product with step up interest. Its average return depends on how long you hold it. A rented property carries tenant, vacancy and price risk that a savings bond does not. The two are not like for like.
- SORA is a benchmark, not a loan rate. Banks add their own spread, and some packages are fixed. Use your own loan letter for your actual cost.
- A rental yield leaves out price change. It does not include any rise or fall in the unit's value, because no one can predict that. The comparison is about income only.
In the example, 1.98% is below the CPF rates and under the 10 year savings bond average. That does not mean selling is right. It means that, on income alone, the unit pays less than those routes, so you would want a reason of your own to accept that. If your own net yield on today's value comes out clearly above those rates, the logic runs the other way.
For background only: URA's 23 October 2026 release shows private rentals up 1.3% in 3Q 2026 (2Q: up 0.7%) and the vacancy rate up to 7.2%. These are market wide, quarter on quarter figures, not a forecast for your unit. For the sale side, see the condo supply wave and resale sellers.
When holding can make sense
A low yield on today's value is not a reason to sell on its own. Several honest situations favour keeping the unit.
- Little or no loan. The rent is not carrying heavy interest.
- A long, stable tenant. Vacancy and agent fees fall when a good tenant stays.
- No better use for the cash. If sale proceeds would sit idle, holding has a point.
- The cost of switching is real. Selling and buying again means agent fees, legal fees and stamp duties each time. If you are an owner of other properties, buying again can bring ABSD. IRAS lists rates from 20% for a Singapore citizen buying a second residential property, 30% for a Singapore PR buying a second, and higher for others, on or after 27 April 2023, charged on the higher of the price or market value. A sale followed by a purchase is not a free swap.
- A plan to use the property yourself. Moving back in changes the question entirely.
Source: IRAS, Additional Buyer's Stamp Duty (ABSD), iras.gov.sg ABSD, checked 26 October 2026.
Selling might suit someone who wants less complexity, needs the equity for a specific purpose, or has a loan costing more than the property's net yield. Only you can set those weights. If your Seller's Stamp Duty period has ended, this page on what to do once SSD has ended covers that part. For the trade off between income and price growth, see rental yield versus appreciation.
Questions to settle before you act
What could the unit sell for, what is your real net rent, and what would you clear after loan, CPF refund and selling costs? Use the net proceeds tool for the last one and the should I sell tool to organise the rest. If you sold, where would the cash go?
Frequently asked questions
Why use today's value instead of my purchase price?
Because a hold or sell decision is about the money you could free up now. Net rent divided by today's sale value shows what that equity earns inside the property, which is the only version you can compare with other uses of the money. The cost based figure shows how the original purchase performed.
Which yield should I compare with savings rates?
Use net yield, after vacancy, property tax at the non owner occupier rates, maintenance fees, agent fees and repairs, divided by what the unit could sell for today. Gross yield ignores costs and will overstate what you earn. Rental income tax depends on your other income, so check IRAS.
Does a yield below the CPF or savings bond rates mean I should sell?
No. A rental yield leaves out any change in the unit's price, selling and buying costs, ABSD if you buy again, and personal plans. It is one input. For reference, CPF Ordinary Account pays 2.5% and Special, MediSave and Retirement Accounts 4% from 1 Oct to 31 Dec 2026, and the Oct 2026 Singapore Savings Bond averages 2.32% a year over 10 years.
Is rental income taxed, and what can I deduct?
Yes, rental income is taxable. IRAS says landlords can claim 15% of gross rent as deemed expenses plus mortgage interest on the loan for the tenanted property, or claim actual expenses instead. Your tax rate depends on your total income. Property tax on a rented condo is charged at the non owner occupier rates.
Want your own net yield on today's value worked out?
Share your project, rent and loan, and Winfred will go through your net rent and what you would clear if you sold, so you can weigh your options with real numbers. General information only.
Ask Winfred on WhatsApp Book a free 30 minute callWinfred Quek, CEA R073319H, Crestbrick Pte Ltd (L3010886H). General information as at 26 October 2026, not legal, financial, tax or property advice. Figures are from URA, IRAS, CPF Board and MAS, and may change. The worked example uses assumed figures. This page makes no price or rent forecast.