Properties in Singapore can appreciate about 10% per annum with a rental yield of 4%

In the current Singapore property market, the expectation for capital appreciation and rental yields is more subdued compared to a 10% annual appreciation and a 4% rental yield.

For the first quarter of 2025, the overall private residential property price index rose by only 0.8%, which is a significant easing from the 2.3% increase in the fourth quarter of 2024. This indicates a slower pace of capital appreciation.

As for rental yields, the market is not currently supporting high yields. The general sentiment and market conditions suggest that rental yields are likely to be lower than 4%, given the mixed signals and the slowing property price growth expected for 2025.

DBS has revised its property price growth estimates for 2025 to between 0% and 1%, further indicating a more cautious outlook for capital appreciation and potentially lower rental yields.