A S$1 million condo in Singapore earns roughly S$2,800–S$3,600 per month in rent (as of 2026-06), equating to a gross yield of 3.4–4.3%. After MCST fees, property tax, vacancy, and agent costs, the net yield often falls to 2.0–2.8%. Most S$1M units financed at 75% LTV are cash-flow negative in the early years — the mortgage repayment alone can exceed rental income by S$300–700 per month. Location, MRT proximity, and furnishing quality are the three variables that move the needle most.
Every landlord has a number in their head: "I paid S$1 million, so I need X in rent." The problem is that Singapore's rental market does not care what you paid. It cares about location, unit size, condition, and competing supply. This guide anchors the rental math in URA rental transaction data (the same figures your tenant's agent will use to negotiate), walks through the full cost stack from gross rent to net cash flow, and closes with a worked example so you can stress-test any target property before you sign on the dotted line.
What the URA data actually says about S$1M condos (as of 2026-06)
URA rental records for non-landed private residential show the following median monthly rents for transactions lodged from January 2025 through mid-2026. These are contract rents — what tenants actually paid, not asking prices:
| Unit type | OCR typical rent | RCR typical rent | CCR typical rent |
|---|---|---|---|
| 1-bedroom (35–50 sqm) | S$2,700–S$3,100 | S$3,000–S$3,500 | S$3,700–S$4,300 |
| 2-bedroom (55–75 sqm) | S$3,400–S$3,700 | S$3,800–S$4,500 | S$5,000–S$5,800 |
A S$1 million budget in the Outer Central Region (Districts 18, 19, 22, 23) typically buys a 2-bedroom unit of 60–75 sqm — the most liquid rental segment. In the Rest of Central Region (Districts 14, 15) the same budget may reach an older 2-bedroom. In Core Central Region districts (9, 10), S$1 million is firmly studio-or-small-1BR territory, where the per-sqm rent premium is real but the absolute monthly figure is lower. See the rental yield map to visualise how yields cluster across the island.
The gross yield formula — and why it flatters
Gross yield is the number quoted in property portals, marketing decks, and agent pitches. It is calculated as:
Gross Yield (%) = (Annual Rent ÷ Purchase Price) × 100
For a S$1,000,000 unit renting at S$3,500 per month: (S$3,500 × 12) ÷ S$1,000,000 × 100 = 4.2% gross. That looks respectable against a Singapore Overnight Rate Average (SORA) of approximately 3.1% and a typical mortgage rate of 3.5–4.0%. But gross yield hides all the costs that sit between the tenant's cheque and your bank account.
A S$1 million condo in Singapore typically commands S$2,800–S$4,200 per month in rent as of 2026, depending on location, age, and unit size. CCR units pull S$3,200–S$4,200, RCR S$3,000–S$3,800, OCR S$2,800–S$3,200. Studios at this price point are smaller (35-45 sqm) and rent for S$2,500–S$3,000.
Monthly rent for S$1M condo by region
| Region | Typical unit | Monthly rent | Gross yield |
|---|---|---|---|
| CCR (D9, D10) | 2BR, 50-65 sqm | S$3,400-4,200 | 4.1-5.0% |
| RCR (D8, D14, D15) | 2BR, 55-70 sqm | S$3,000-3,800 | 3.6-4.6% |
| OCR (D18, D19, D22) | 2BR, 60-75 sqm | S$2,800-3,400 | 3.4-4.1% |
Rents vary 20-30% within each region based on condo age, MRT proximity, and amenities.
Factors affecting rent
- Condo age: New launches command 10-15% premium over 5-year-old comparable units
- Floor + view: High floor (above 20) adds 5-10%
- Walking distance to MRT: 400m or closer adds 10-20% rental premium
- School proximity: Top-school enrolment areas (Bukit Timah, Holland Road) command family-rental premium
- Furnishing: Fully-furnished adds S$300-500/mo
FAQ
What if the unit is bare?
Unfurnished rents at 10-15% discount. Some tenants prefer bare for own furniture.
How fast can a S$1M condo rent out?
Average days-on-market: 4-8 weeks in stable market. New launches at TOP may need 8-12 weeks during absorption.
Does corporate / expat lease pay more?
Yes, typically 5-10% premium for 2+ year corporate leases with relocation packages.
From gross to net: the cost stack every landlord faces
The table below models a S$1,000,000 OCR 2-bedroom (District 19, 63 sqm) rented at S$3,500 per month (as of 2026-06). All figures are estimates; your property may differ.
| Item | Annual cost | Notes |
|---|---|---|
| Gross rent | S$42,000 | S$3,500 × 12 |
| MCST / maintenance fees | -S$2,160 | ~S$180/mo for a mid-tier OCR condo |
| Property tax (non-owner-occupier) | -S$1,880 | IRAS 2024 non-owner-occupier rates; AV ~S$27,600 at 6.8% effective rate |
| Agent commission (annual equivalent) | -S$1,750 | 0.5 month per year assuming 2-year lease, repeat-tenant scenario |
| Fire insurance + landlord cover | -S$300 | Basic coverage; commercial landlord riders add cost |
| Vacancy allowance (1 month/2 years) | -S$1,750 | Conservative 4.2% vacancy rate assumption |
| Minor repairs / touch-up | -S$600 | Paint, fixtures, appliances over cycle |
| Net annual rent | S$33,560 | Net yield: 3.4% |
That 3.4% net figure assumes no major renovation between tenants, no AC compressor failure, no prolonged vacancy. A 2-month vacancy between tenants — common during a supply glut — cuts net yield to approximately 2.7%. Use the ROI calculator to stress-test your own numbers.
The mortgage reality: cash-flow negative from day one
Most investors finance at 75% LTV — a S$750,000 loan. At a 30-year tenure and a 3.8% blended mortgage rate (fixed + SORA-pegged packages as of 2026-06), the monthly instalment is approximately S$3,490. The rental income of S$3,500 per month barely covers the mortgage, and that is before all the costs itemised above.
The actual monthly cash flow looks like this: Rent S$3,500 minus mortgage S$3,490 minus MCST S$180 minus property tax S$157 minus pro-rated agent and insurance costs of ~S$213 = negative S$540 per month in year one. Capital repayment is building equity in the property, but from a cash-flow perspective, you are paying S$540 per month to own a tenant's home. This is not necessarily a bad investment decision — Singapore residential property has historically appreciated — but it is a liquidity commitment that must be planned for. Consider the cash-flow calculator to model multiple rate and vacancy scenarios before committing.
What kinds of S$1M units maximise rent?
Not all S$1M condos rent equally. The variables that move rental income most are: (1) MRT walking distance — units within 400 metres of an MRT station command 10–18% rental premium over comparable units 800+ metres away; (2) furnishing — a full package (TV, sofa, dining set, beds, washing machine, refrigerator, air-conditioning) adds S$300–S$500 per month and shortens vacancy; (3) efficient layout — a 63-sqm 2-bedder with a proper enclosed second bedroom rents more easily than a 70-sqm open-plan 1-bedder; (4) tenant pool — Districts 18 and 22 near Changi Business Park and one-north draw PME and tech-sector tenants who value MRT access; District 19 near Seletar Aerospace and the international school belt draws families on corporate leases. Explore district-level yield data at District 18 and District 19.
Worked example: OCR 2-bedder, S$1,000,000
Property: 2BR, 63 sqm, District 19 (Hougang/Serangoon), completed 2018, walking distance to Serangoon MRT. Purchase price: S$1,000,000. Loan: S$750,000 at 3.8% over 30 years.
| Metric | Figure |
|---|---|
| Monthly gross rent | S$3,550 |
| Annual gross rent | S$42,600 |
| Gross yield | 4.26% |
| Total annual costs | S$8,400 |
| Net annual rent | S$34,200 |
| Net yield | 3.42% |
| Monthly mortgage instalment | S$3,490 |
| Monthly cash flow (after mortgage + costs) | -S$550 |
| Annual equity repaid (year 1) | ~S$15,300 |
The investor is paying approximately S$6,600 per year out of pocket in cash flow terms, but building ~S$15,300 in equity annually. The investment thesis only works if capital appreciation makes up the shortfall — a reasonable assumption for well-located private residential in Singapore, but not a guarantee.
Step by step
- Pull comparable URA transactions first. Before making assumptions, check URA REALIS rental records (or the free URA rental search at ura.gov.sg) for the specific development or street. Filter to the past 12 months and the matching bedroom count. Use the median, not the maximum, as your base case rent.
- Calculate your actual gross yield. Divide annual rent (median monthly rent × 12) by the purchase price. A gross yield below 3.5% on a S$1M property in the current interest rate environment means the mortgage repayment will likely exceed rent from day one.
- Build the full cost stack. Add MCST fees (ask the managing agent for the latest rate), property tax at non-owner-occupier rates (use the IRAS Annual Value guide to estimate the AV), agent commission (typically half a month per year on a 2-year lease), fire insurance (~S$20–30/mo), and a 1–2 month vacancy reserve per 2-year cycle.
- Run the cash-flow model. Monthly net cash flow = monthly rent minus mortgage instalment minus (total annual costs ÷ 12). If this is deeply negative (> -S$800/mo), stress-test what happens if rates rise another 50bps or vacancy stretches to 3 months.
- Evaluate the tenant pool for your target district. Districts near employment clusters (one-north, Changi Business Park, Jurong Lake District) or international schools attract corporate tenants who pay on time and maintain properties well. Residential-only districts with limited transport options have narrower tenant pools and may command lower rents.
- Furnishing decision. Full furnishing costs S$15,000–S$30,000 for a 2-bedder but can add S$300–500/month in rent and reduce vacancy. On a 5-year hold with 2-year leases, the additional rent typically recoups the furnishing cost within 3–4 years.
- Compare net yield to alternatives. Singapore 10-year government bonds yield approximately 3.1–3.3% (as of 2026-06) with zero vacancy risk or maintenance cost. Your net yield target on a S$1M condo should meaningfully exceed this to compensate for illiquidity and effort.
Frequently asked questions
Is a 3% gross yield on a S$1M condo worth it?
At 3% gross yield, annual rent is S$30,000 — just S$2,500 per month. After MCST fees, property tax (non-owner-occupier), agent commission, insurance, and vacancy, net yield drops to roughly 2.0–2.2%. With a 75% LTV mortgage at 3.8%, monthly payments total around S$3,490 against a S$2,500 rent, creating negative cash flow of roughly S$1,100 per month before costs. This requires strong conviction in capital appreciation to justify — compare with the prevailing Singapore government bond yield of approximately 3.1–3.3% before deciding (as of 2026-06). The math only works if you believe the property will appreciate at 3–4% per year on average over your hold period.
Which districts give the best rental yield on a S$1M condo?
Based on URA rental data (as of 2026-06), the highest gross yields for S$1M condos cluster in the OCR districts — particularly Districts 18 (Pasir Ris, Tampines), 19 (Hougang, Punggol), and 22 (Jurong, Lakeside), where a 2-bedroom unit in the S$900k–S$1.1M range commands S$3,400–S$4,000 per month. That translates to gross yields of 4.0–4.5%. CCR districts (9, 10) at this price point tend to be smaller 1-bedroom or studio units where the absolute rent is higher per sqm but the monthly amount is lower, typically yielding 3.6–4.2% gross. Use the rental yield map to compare live data across all districts before targeting a specific area.
How does property tax affect rental income on a S$1M condo?
When you rent out your property, IRAS taxes it at non-owner-occupier (NOO) rates, which are higher than the owner-occupier rates. For an Annual Value (AV) of approximately S$26,000–S$30,000 — typical for a S$1M condo rented at S$3,200–S$3,800 per month — the NOO tax ranges from roughly S$1,700 to S$2,200 per year under the 2024 IRAS progressive NOO rate schedule. You must also inform IRAS within 15 days of renting out your property; failure to do so incurs penalties. AV is set by IRAS based on estimated annual rent, not what you actually charge — IRAS updates AVs annually, so a rising rental market can push your tax bill up even mid-lease.
Can I use CPF to offset the mortgage while renting out?
Yes. CPF Ordinary Account savings can continue to service your mortgage instalment even after you rent out your property, as long as the property remains a private residential property bought under the normal CPF rules. There is no restriction that prevents CPF usage on a rented-out private condo. However, if the property is fully paid for using CPF and you sell it later, you must refund the CPF principal plus accrued interest (at 2.5% per annum) to your CPF account before pocketing the net proceeds. This can significantly reduce the cash profit on sale — particularly for properties held fewer than 10 years where price appreciation may not fully cover both the loan paydown and CPF refund. Factor this into your exit modelling when calculating true return on equity.
What rental income is realistic for a S$1M new launch at TOP?
New launches at TOP typically face a rental supply spike — hundreds of units in the same project and neighbouring developments hit the market simultaneously. Absorption rates at TOP are typically 8–16 weeks, longer than the 4–6 weeks for resale condos in stable supply conditions. Expect to rent for 3–8% below the prevailing street level for the first lease cycle as you compete for tenants. Realistic planning for a S$1M new launch: budget for 2–3 months of vacancy at TOP, price at market (not above), and offer fully-furnished to differentiate from unfurnished developer show-flat units in the same block. Over the subsequent 2–3 lease cycles, as absorption stabilises, rents typically normalise to the district median. Check URA's property market information for the TOP pipeline in your target district to forecast supply pressure before you commit.