Most property investment advice in Singapore is opinion. This guide is arithmetic. It sets out the six numbers that actually determine whether a residential purchase works — replacement cost, true yield, connectivity, lease position, tax load and exit liquidity — and it shows you how to check each one before you commit capital. Every figure below is in Singapore Dollars (SGD).
What is psf per plot ratio, and why investors should start here?
psf per plot ratio (psf ppr) is the land price divided by the site's permitted gross floor area. It is the cleanest way to compare two land parcels of different size, shape and allowable density, and it is the number developers underwrite their launch prices against.
For an investor, its value is diagnostic. Comparing a project's psf ppr against the most recent nearby Government Land Sales (GLS) clearance tells you how much genuine pricing room exists in the project — and therefore how likely your entry price is to hold through a soft patch.
Worked example: reading the spread
Two sites, same district
Site A was won in an earlier tender at S$1,432 psf ppr. The most recent city-fringe tender cleared at about S$1,612 psf ppr, and a suburban tender at about S$1,537 psf ppr.
Site A's developer therefore holds land at roughly 7 to 11 per cent below current replacement cost. That does not make the project cheap — it means the developer has more room to absorb a slower market without discounting aggressively, which protects early buyers' paper value.
Reverse the spread and the conclusion flips. If a project's land basis is above recent clearances, the developer must price near or above the market to protect margin, and the entry price is the least defensible in the district.
Images and illustrations are AI-generated for illustration purposes only.
How much rental yield should I expect in Singapore?
For a typical 99-year leasehold private condominium outside the Core Central Region, a gross rental yield of roughly 3.0 to 3.8 per cent is a reasonable working benchmark. Net yield after property tax, maintenance, agent fees and vacancy is typically 1.0 to 1.5 percentage points lower. Prime CCR units often yield lower gross but may offer stronger capital preservation.
What matters more than the headline is the yield you actually keep. There are four deductions most investors under-model.
| Cost line | Typical annual impact | Notes |
|---|---|---|
| Gross rent | Benchmark | What the unit lists for |
| Vacancy allowance | About 0.5 to 1 month per year | Assume it, do not hope against it |
| Property Tax | Property-tax rate on Annual Value | Non-owner-occupied rates apply if you do not live there |
| Maintenance / sinking fund | Recurring monthly charge | Rises with building age |
| Agent commission | On tenancy renewal | Budget half a month to a month on renewal |
| Repairs and replacement | Periodic | Air-con, fittings, painting on turnover |
Worked example: from gross to net
A S$1.8 million resale unit
Gross rent: S$4,800 per month = S$57,600 a year. On S$1.8 million that reads as 3.2 per cent gross.
Deduct one month of vacancy (S$4,800), property tax and maintenance (illustratively S$4,200), agent renewal commission (S$2,400) and a repairs allowance (S$1,800): S$44,400 net.
Net yield: 2.47 per cent. That is the number to compare against your mortgage rate — not the 3.2 per cent on the brochure.
If your net yield is below your effective mortgage rate, you are running negative carry. That can still be a rational decision if you are underwriting capital growth — but you should be making it deliberately, with the number written down, not discovering it in year two.
Does MRT connectivity actually pay for itself?
Walk-to-station distance is one of the most consistent dividers in Singapore resale velocity and pricing. Projects within a genuine five to eight minute walk of an MRT station typically transact faster and hold value better than comparable projects with similar finishes and poorer connectivity.
Two cautions for investors.
- The premium is priced in at launch. Connectivity is a liquidity feature, not free upside. You are buying the ability to sell faster, not a mispricing.
- Genuine walk beats measured distance. A 600-metre walk in Singapore's climate, with multiple road crossings or no sheltered path, is not the same product as a 400-metre sheltered linkway. Check the route, not the radius.
Recent resale data has repeatedly shown dispersion between projects in the same district clearing at materially different rates — and connectivity is the most frequent explanation. For an investor, that translates directly into time-on-market and negotiation strength at exit.
Lease decay: the cost that quietly compounds
Singapore's private residential stock is overwhelmingly 99-year leasehold. A new launch begins with the full lease — its highest lease value. Every year after that, a portion of the value heads toward zero, slowly at first and faster later.
Two consequences matter to investors:
- Financing tightens as the lease shortens. Banks apply CPF and loan restrictions as the remaining lease falls, historically relevant below roughly 60 years remaining and more restrictive below 30. This shrinks your pool of eligible buyers at exit.
- A low psf on an old lease is not a bargain. It is often the market correctly pricing your exit constraint.
Taxes and cash flow: what to budget
| Item | When it applies | Planning note |
|---|---|---|
| Buyer's Stamp Duty (BSD) | On purchase | Progressive rates on purchase price |
| Additional Buyer's Stamp Duty (ABSD) | On purchase, by residency status and property count | The largest single policy variable — verify current rates on IRAS |
| Seller's Stamp Duty (SSD) | On resale sale within the holding period | Does not apply to the initial developer purchase of a new launch |
| Property Tax | Annually | Non-owner-occupied rates apply to investment units |
| Income tax on rent | Annually | Rental income is taxable; expenses may be deductible |
ABSD remission for married couples upgrading can apply when you buy a replacement home and sell the first within the stipulated window. The sequencing is unforgiving — get the order wrong and the remission can be lost. This is a sequencing decision, not a price decision, and it should be planned before you view anything.
Exit liquidity: the question most investors skip
You make your money when you buy, but you realise it when you sell. Before committing, answer these four questions about your future buyer:
- Who is the buyer? A four-bedroom in a family district has a different buyer pool from a one-bedroom investor unit. Narrow pools take longer to clear.
- What is the competing supply? Ongoing launch pipelines in the same area mean your unit competes with brand-new stock at your exit.
- What will the remaining lease be? See above. This is the most common self-inflicted exit problem.
- How liquid is the development itself? High-volume developments with consistent turnover give buyers comparable transactions to price against — that shortens time on market. Very small boutique developments can be harder to price.
Common mistakes I see investors make
- Buying on gross yield. Net yield is the only number that interacts with your mortgage rate.
- Comparing a new launch to other new launches. Compare to nearby resale transacted psf — that is the market your unit competes in.
- Skipping the land basis check. psf ppr versus recent GLS clearance takes ten minutes and tells you how much room the price has.
- Ignoring supply pipelines. Know what is launching in your district over the next 24 months before you buy into it.
- Under-modelling ABSD and SSD sequencing. The tax bill, not the price, is what breaks upgrade plans.
- Financing at the limit. TDSR caps what you can borrow, not what you can comfortably service. Stress-test at two to three percentage points above your rate.
- Treating connectivity as upside. It is priced in. Buy it for liquidity, not for a bargain.
Frequently Asked Questions
What is a good rental yield for a Singapore condo in 2026?
For a typical 99-year leasehold private condominium outside the Core Central Region, a gross rental yield of roughly 3.0 to 3.8 per cent is a reasonable benchmark. Net yield after property tax, maintenance, agent fees and vacancy is typically 1.0 to 1.5 percentage points lower. Prime CCR units often yield lower gross but may carry stronger capital preservation characteristics.
What is psf per plot ratio and why does it matter to investors?
psf per plot ratio (psf ppr) is the land price divided by the site's permitted gross floor area. It is the cleanest way to compare land parcels and the basis developers underwrite launch prices against. Comparing a project's psf ppr to the most recent nearby Government Land Sales clearance tells you how much genuine pricing room exists in a project and how likely the entry price is to hold.
How does MRT connectivity affect Singapore property value?
Walk-to-station distance is one of the most consistent dividers in Singapore resale velocity and pricing. Projects within a genuine 5 to 8 minute walk of an MRT station typically transact faster and hold value better than comparable projects with similar finishes but poorer connectivity. The premium is real but is already priced in at launch, so it should be treated as a liquidity feature rather than free upside.
Should I buy a new launch or a resale condo as an investment in Singapore?
For income now, a completed resale is usually stronger because it earns rent from day one. For growth over a five to ten year horizon, a new launch can be attractive because of the fresh 99-year lease, progressive payment leverage and first choice of stack. The deciding factors are your holding horizon, whether you can fund the three to four year construction period with no rental income, and the walk to the nearest MRT station.
What taxes should a property investor in Singapore budget for?
Budget for Buyer's Stamp Duty on purchase, Additional Buyer's Stamp Duty (ABSD) depending on residency status and property count, and Seller's Stamp Duty (SSD) if you sell a resale unit within the holding period. Annual Property Tax is payable on the annual value, and rental income is taxable. Rates change with policy, so always verify current figures with IRAS before committing.
How does lease decay affect an investment property in Singapore?
A 99-year leasehold property begins with the full lease at its highest lease value. As the remaining lease shortens, financing and CPF usage restrictions tighten, and resale value is affected. Investors should check the remaining lease at their intended exit date, not just at entry, because a unit that looks like a bargain on psf can be constrained at exit if the remaining lease is short.
The six-number checklist
| # | Check | What "good" looks like |
|---|---|---|
| 1 | Land basis (psf ppr) | At or below recent nearby GLS clearance |
| 2 | Net rental yield | Above your effective mortgage rate, or a deliberate growth bet |
| 3 | Walk to MRT | Genuine 5 to 8 minute sheltered walk |
| 4 | Remaining lease at exit | Comfortably above financing restriction thresholds |
| 5 | Tax and stamp duty load | Modelled in cash before booking, including ABSD sequencing |
| 6 | Exit liquidity | Identifiable buyer pool and manageable competing supply |
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Send me a project name and I will run all six numbers with you — land basis against recent GLS clearance, net yield after real cost lines, connectivity, lease position at your exit date, tax load and exit liquidity. Data first, opinion second.
Run the six-number check with FloraNo obligation. All figures in SGD. Independent, evidence-based analysis.
Images and illustrations are AI-generated for illustration purposes only.
Disclaimer: This page is general information for educational purposes and is not financial, tax or legal advice. All figures are in Singapore Dollars (SGD) and are illustrative examples, not offers, valuations or guarantees. Stamp duty, ABSD, SSD, property tax, CPF and loan rules change with policy — verify current rules with IRAS, URA, MAS, HDB and your own professional advisers before transacting. Property values can fall as well as rise.