Should I sell St Michael's Place or keep it for rental income?

The decision to sell or keep your property for rental income in Singapore hinges on several key factors: the current rental yield of your unit, potential for capital appreciation, ongoing expenses, and your investment objectives.

- Rental Yield: In Singapore, a good gross rental yield typically ranges from 3% to 5%, with yields in prime districts often being lower. Net rental yield (after expenses like mortgage, tax, and maintenance) is usually 1.5% to 2% lower than the gross figure. Properties with higher yields may be more attractive to keep for rental, especially if the yield comfortably covers your loan repayments and generates positive cash flow.

- Capital Appreciation vs. Rental Income: If property prices in your area have appreciated significantly or are expected to peak, selling could lock in gains. If the market is relatively stable and you secure reliable tenants, holding for rental income can provide steady returns.

- Costs and Liquidity: Calculate all ownership costs (maintenance, tax, loan interest, vacancy periods). If these costs eat substantially into income or if you prefer liquidity, selling may be more attractive.

- Personal Financial Goals: If you require lump sum capital for other investments or life needs, selling makes sense. If you want long-term passive income and believe in future capital gains, holding may be preferable.

To make an informed decision:
- Use a Singapore-specific rental yield calculator to compare your property’s gross and net yields.
- Assess recent transaction prices for similar units and current rental demand in your project on EdgeProp Singapore.
- Consider market trends: as of Q2 2025, average gross yields have edged down, but rental demand remains strong for well-located units and smaller sizes.

In summary:
- Consider keeping if your net rental yield is attractive, the property is consistently tenanted, and you expect future capital appreciation or value stability.
- Consider selling if rental returns are low, maintenance or vacancy costs are high, or you need to realise gains for higher-return opportunities elsewhere.

For a personalised analysis, review your specific property’s numbers using the rental yield tools and transaction data available on EdgeProp Singapore.