What is rental yield and how do I calculate it?

Rental yield is the annual rental income expressed as a percentage of the property value. Formula: Gross rental yield = (Annual rent / Property value) × 100. For example, a property worth S$1,200,000 that rents for S$3,500 per month has an annual rent of S$42,000 and a gross rental yield of 3.5%. Singapore private property yields typically range from 2.5% to 4%, and HDB yields can range from 3% to 5%.

What is the typical rental yield for HDB flats and condominiums in Singapore?

As of 2025–2026, gross rental yields in Singapore typically range from 2.5% to 3.5% for private condominiums and 3% to 5% for HDB flats on the open market (for those past the 5-year Minimum Occupation Period). Actual yield depends heavily on location, unit size, and current market conditions. Use URA rental data and HDB resale portal for the most current figures.

What happens to my CPF if I sell my property in Singapore?

When you sell a property bought using CPF funds, you must refund to your CPF Ordinary Account the principal amount withdrawn plus accrued interest (at 2.5% per annum) from the date of withdrawal. This accrued interest obligation grows over time and must be accounted for when calculating your actual cash proceeds from a sale. It is a critical factor that can significantly reduce your net sale proceeds.

Can HDB owners rent out their flat in Singapore?

HDB flat owners who have fulfilled the 5-year Minimum Occupation Period (MOP) can rent out the whole flat or individual bedrooms, subject to HDB's approval and occupancy rules. Rentals must comply with HDB regulations including occupancy caps, and owners must apply for approval before renting. Renting your whole flat while buying a private property may trigger ABSD on the new purchase.

What is the break-even point for renting vs selling?

The break-even point is the year at which the total value from renting (property value appreciation + cumulative rental income) equals the total value from selling and investing the proceeds. If your rental yield plus property appreciation exceeds your investment return, renting breaks even from Year 1. If your investment rate is significantly higher, the break-even can extend many years — or may not occur within a typical 5–10 year horizon.

What costs should I account for when renting out my property?

Key costs for landlords in Singapore include: property tax (owner-occupier rate is lower; investor rate is higher at 12–36% from 2024), property agent commission (typically 1 month's rent for the first lease), maintenance and repair costs, insurance, possible furnishing costs, and rental vacancy periods. These costs can reduce your effective yield by 0.5% to 1.5% annually. Our calculator uses gross yield — consult a consultant for a net yield estimate.

Does renting out my property affect my ABSD or other stamp duties?

Renting out your property itself does not trigger Additional Buyer's Stamp Duty. However, if you rent out your HDB flat and simultaneously purchase a private property, the private property purchase would be subject to ABSD as it would be your second property. Singapore citizens pay 20% ABSD on the second property, and permanent residents pay 30%. SSD may also apply if you sell within the holding period.

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Rent vs. Sell
Property Calculator Singapore

Q: Should I rent out or sell my property in Singapore?

The decision depends on three key numbers: your property's rental yield, the return you can earn by investing the sale proceeds, and your expectation for property value growth. If your rental yield plus expected capital appreciation exceeds your investment alternative rate, renting out is generally more financially favourable. However, liquidity needs, CPF accrued interest, SSD obligations, and management effort should also factor into the decision.

Compare the 5-year financial outcome of renting out your property versus selling and reinvesting the proceeds. See your break-even year instantly — for HDB flats, condos, ECs, and landed homes.

Quick Answer: What drives the rent vs. sell decision?

Rent wins when…

· Rental yield + appreciation > investment rate
· You expect strong property value growth
· You want to retain a hard asset

Sell wins when…

· Investment rate > rental yield + appreciation
· CPF accrued interest is large
· You prefer liquidity & passive income

Always consider…

· SSD if within holding period
· Property tax (investor rate is higher)
· Vacancy & management effort

Rent vs. Sell Calculator

Compare your 5-year financial outcome either way

Property Type

Estimated Property Value

Expected Annual Rental Yield(% of property value)

If You Sold — Investment Return(% pa)

Property value assumed to appreciate at 2.5% per year (Singapore long-run residential average). Rental income shown as non-reinvested for clarity.

Key Factors Beyond the Numbers

The calculator gives you a financial baseline. These factors can shift the outcome significantly.

CPF Accrued Interest

Seller — critical

When you sell a property bought with CPF, you must refund the principal withdrawn plus accrued interest at 2.5% pa. On a 10-year-old property, this can be hundreds of thousands of dollars — reducing your actual cash proceeds significantly.

Property Tax (Investor Rate)

Landlord — ongoing cost

Once rented out, your property moves from the owner-occupier tax rate to the higher taxable annual value rate (12–36% from 2024 for private property, progressive). This increases your holding cost by potentially several thousand dollars per year.

Seller's Stamp Duty (SSD)

Seller — if within hold period

If purchased on or after 4 July 2025, selling within 4 years means SSD of 4–16% of the selling price. For a S$1M property sold in Year 1, that's S$160,000 in SSD alone. Use our SSD Calculator to model this before deciding.

Rental Vacancy & Management

Landlord — variable cost

Most rental units experience 1–2 months of vacancy between tenancies. Agent commission (typically 1 month's rent), maintenance, and occasional repairs reduce your effective yield. Budget for these when entering your rental yield.

Next Property Plans

Both paths — ABSD impact

If you rent out your HDB flat and buy a private property (or already own one), the next purchase triggers ABSD: 20% for Singapore citizens (2nd property), 30% for PRs. Renting out may lock up your ability to upgrade without major stamp duty costs.

Mortgage Outstanding

Both paths — affects equity

If you have an outstanding loan, rental income must service the mortgage before becoming profit. On the sell side, the outstanding loan is deducted from your proceeds. Use your net equity — not the property value — for the most accurate comparison.

Thinking of selling?

Check if Seller's Stamp Duty applies before you commit — it could cost up to 16% of your selling price.

SSD Calculator →

Frequently Asked Questions

Common questions about the rent vs. sell decision for Singapore homeowners.

Should I rent out or sell my property in Singapore?

The core financial question is whether your rental yield + property appreciation exceeds your investment alternative rate. If yes, renting out typically generates more total wealth over time. But the full decision also involves CPF accrued interest refunds on sale, SSD obligations, property tax differences (investor vs. owner-occupier rates), vacancy risk, and the effort of being a landlord. Our calculator gives you the financial baseline — a consultant can help with the rest.

What investment rate should I use?

Use the expected annual return of where you'd realistically deploy your sale proceeds. CPF OA earns 2.5% guaranteed. Singapore Savings Bonds (SSB) and T-bills currently yield around 3–4%. A globally diversified balanced fund might target 5–6% pa. The S&P 500 has returned about 7% annually (inflation-adjusted) over the long run, though with higher volatility. Be conservative if you have a shorter time horizon or low risk tolerance.

How is the rental yield calculated in this tool?

Enter your expected gross annual rental yield as a percentage of your property value. For example, if your property is worth S$1.2M and you expect S$3,500/month in rent, your gross yield is (S$3,500 × 12) / S$1,200,000 = 3.5%. The tool then converts this to annual rental income for comparison. Note: actual net yield after costs (agent fees, maintenance, property tax uplift) is typically 0.5–1.5% lower.

Why does the calculator assume 2.5% property appreciation?

Singapore residential property (blended HDB and private) has appreciated at approximately 2–3% per annum over long multi-decade periods based on URA/HDB indices. We use 2.5% as a conservative mid-range figure. The actual rate will vary by location, property type, and market cycle. This assumption is clearly disclosed — a higher appreciation rate would favour renting, and a lower rate would favour selling.

What happens to my CPF when I sell?

Upon sale, you must refund the CPF principal withdrawn plus accrued interest at 2.5% pa to your CPF OA. This refund does not cost you money outright — it goes back into your own CPF — but it reduces the cash portion of your sale proceeds. If you've held the property for many years, the accrued interest refund can be substantial. This is a key factor our calculator cannot fully capture — a consultant can model it precisely.

Can I rent out my HDB flat?

Yes, after fulfilling the 5-year Minimum Occupation Period (MOP). You can rent out either individual rooms or the entire flat (whole-flat rental). HDB approval is required. Note: renting out your whole HDB flat and simultaneously purchasing a private property would classify the private property as a second property, attracting ABSD. Think carefully about your next housing step before committing.

Does the calculator account for rental vacancy?

No — for simplicity the calculator assumes 100% occupancy. In practice, you should factor in expected vacancy periods (1–2 months between tenancies is common) and reduce your effective yield accordingly. A 2-month vacancy per year on a 12-month yield would reduce your effective yield by about 1/6th (e.g., 3.5% effective yield becomes approximately 2.9%. This can meaningfully change the outcome for close calls.

What if I still have a mortgage on the property?

This calculator uses your estimated property value rather than your equity stake. If you have an outstanding loan, your net proceeds from selling are lower (value minus outstanding loan minus transaction costs). Similarly, rental income must service the mortgage before becoming profit. For the most accurate comparison, use your net equity as the 'property value' input — or speak to a consultant for a full leveraged analysis.

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Rent vs. SellProperty Calculator Singapore