What is a good rental yield in Singapore? Can it cover interest cost, agent fee, and MCST?

A good rental yield for residential properties in Singapore is generally considered to be between 3% and 4%. The average gross rental yield in Singapore currently sits at about 3.3%. Districts like Tanjong Pagar, Woodlands, and Paya Lebar can sometimes see yields above 4%, while yields below 3% are relatively low for the local market.

Rental yield measures the annual rental income as a percentage of the property's purchase price, and it helps investors compare returns across different properties. While Singapore yields are lower than some global markets, it's important to note Singapore’s property market is known for stability and long-term capital appreciation, factors many investors prioritize alongside immediate rental income.

Factors that influence rental yield include:
- Location (prime and city-center properties vs. suburban or fringe districts)
- Property type (executive condominiums, private condominiums, HDB flats)
- Size and condition
- Market demand and supply
- Operating costs and taxes

For context:
- A yield much above 4% in Singapore is considered strong.
- Yields around 3% to 4% are typical and regarded as “good”.
- Yields below 3% are relatively modest, especially in prime districts.

In summary, a yield in the 3%–4% range is considered good for Singapore residential properties, balancing income with capital growth and market stability.