How do I calculate rentability for a property in Singapore

To calculate rentability, which in Singapore real estate commonly refers to the rental yield of a property, you need to follow this method:

1. Determine the annual rental income: Take the monthly rental you expect to receive and multiply by 12.
2. Calculate the property purchase price: Use the actual price you paid or the market value.
3. Calculate gross rental yield: Divide the annual rental income by the property purchase price, then multiply by 100 to get a percentage.

For example, if a property is rented out at 3,000 per month and the purchase price was 1,000,000:

- Annual rental income = 3,000 x 12 = 36,000
- Gross rental yield = (36,000 ÷ 1,000,000) x 100 = 3.6%

Rental yields for Singapore properties vary. For landed homes, yields typically range from 2% to 4%, and condominiums can offer slightly higher yields depending on the location and unit size. HDB flats can sometimes have even higher yields, especially in certain mature estates.

For a more accurate assessment, you can also take into account additional costs such as property taxes, maintenance fees, and agent commissions for a net rental yield calculation, but the basic gross rental yield as outlined remains the common industry standard in Singapore. EdgeProp Singapore provides advanced filters and analytical tools to compare rental yields across different property types and locations for your property research.