For property investors in Singapore, rental yield is one of the most important numbers to consider before buying a condominium. A property may be located in a prestigious neighbourhood and command a high monthly rent, but that does not necessarily mean it delivers the best return on investment.
In 2026, Singapore’s private residential market presents an interesting picture. Rental growth has continued to support landlords, while property prices have also remained elevated. Based on an analysis of more than 1,200 private condominium and apartment projects, gross rental yields can vary significantly depending on the property’s location, purchase price and unit size.
So, where can investors potentially find the best condo rental yields in Singapore?
How Is Rental Yield Calculated?
Gross rental yield is a simple calculation:
Annual Rental Income ÷ Property Purchase Price × 100
For example, if a condominium costs $1 million and generates $40,000 in annual rental income, its gross rental yield would be 4%.
However, investors should remember that gross rental yield does not include expenses such as property taxes, maintenance fees, insurance, renovation costs or periods when the property remains vacant.
This means your actual net return could be significantly lower.
Singapore’s Median Condo Rental Yield in 2026
Across the private residential projects analysed, the median monthly rent was approximately $4,300, while the median property price was around $1.79 million.
This resulted in an islandwide median gross rental yield of approximately 2.88%.
The difference between Singapore’s highest- and lowest-yielding districts exceeded 1.6 percentage points. This shows why investors should look beyond general market trends and analyse individual districts and projects carefully.
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District 14 Offers the Highest Median Rental Yield
District 14, which includes Geylang, Eunos and Kembangan, emerged as the highest-yielding condo district in the analysis.
The district recorded a median gross rental yield of approximately 3.98%.
Median monthly rent was around $3,400, while the median property price stood at approximately $1.025 million.
One reason for the stronger yield is the relatively affordable entry price for private property. District 14 contains numerous smaller freehold apartment developments, which can be significantly cheaper than condominiums in Singapore’s more prestigious districts.
By comparison, District 10, which includes Bukit Timah, Holland and Tanglin, recorded one of the lowest median rental yields at approximately 2.34%.
Although rents in District 10 are considerably higher, property prices are also substantially more expensive. This demonstrates an important point for investors: higher rent does not automatically translate into a higher rental yield.
Smaller Condos Generally Produce Better Yields
One of the clearest trends in the 2026 data is the relationship between unit size and rental yield.
One-bedroom condominium units produced the strongest median yield at approximately 4.24%.
This was followed by:
- Two-bedroom units: 3.36%
- Three-bedroom units: 2.93%
- Four-bedroom units: 2.92%
In other words, a one-bedroom unit generated a significantly higher median yield than a four-bedroom property.
Why does this happen?
Property prices often increase substantially as the size of a condominium unit increases. However, rental income does not always rise at the same rate.
A three-bedroom apartment may generate more monthly rent than a one-bedroom unit, but its purchase price could be dramatically higher. As a result, the larger property may produce a lower percentage return.
For investors focused primarily on rental income, smaller units may therefore offer a more attractive entry point.
Location Still Matters, But Project Selection Is Crucial
Singapore’s central districts are often associated with premium property prices and high rental demand.
However, the data shows that prestigious locations do not always offer the best yields.
Overall, properties in the Outside Central Region recorded stronger median yields than those in the Core Central Region. The Rest of Central Region fell somewhere in between.
However, there are important exceptions.
For one-bedroom units, District 1, covering areas such as Raffles Place and Marina, was among the top-performing locations. Its strong rental demand from professionals working in the Central Business District can support higher rents for smaller units.
This highlights why investors should avoid making decisions based purely on district-level averages.
Two condominium projects located close to each other can produce very different rental yields depending on their purchase price, proximity to MRT stations, unit sizes and tenant demand.
High-Yield Projects Are Not Always the Best Investments
Some individual projects achieved gross rental yields above 5%.
However, a high rental yield does not automatically mean a property is a good investment.
For example, a property with a shorter remaining lease may have a relatively low purchase price, making its rental yield appear extremely attractive. However, lease depreciation and potential difficulties with financing could create long-term risks.
Similarly, smaller boutique developments may offer strong yields because their entry prices are lower, but they may have fewer facilities or weaker resale demand.
Investors should therefore consider the complete investment picture rather than chasing the highest rental yield.
Final Thoughts
Singapore’s condo rental market in 2026 shows that investors can no longer simply assume that expensive properties in prime locations will provide the best returns.
District 14 has emerged as one of the strongest locations for rental yields, while smaller one-bedroom units generally outperform larger units on a percentage basis.
However, rental yield should only be one part of a property investment decision.
Before buying an investment property, investors should also consider vacancy risks, maintenance expenses, property taxes, financing costs, lease tenure and potential capital appreciation.
A property with a slightly lower rental yield but stronger long-term fundamentals could ultimately be a better investment.
The key is to look beyond the headline numbers and carefully analyse each individual property before making one of the biggest financial decisions of your life.
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