What Does It Mean?
Gross Yield
Gross Yield is the annual rental income divided by the property value, expressed as a percentage. It provides a quick snapshot of rental return but does not account for expenses such as maintenance, property tax, or vacancy.
Net Yield
Net Yield is the annual rental income minus all expenses, divided by the property value. It gives a more accurate picture of your real investment return because it factors in maintenance fees, IRAS property taxproperty tax, agent fees, and vacancy costs.
How Is It Calculated?
Gross Yield
If monthly rent is $3,800 and property value is $1,500,000: ($3,800 × 12) ÷ $1,500,000 = 3.04%.
Net Yield
Deduct maintenance fees, property tax, agent fees, and vacancy before dividing.
Key Differences
| Metric | Gross Yield | Net Yield |
|---|---|---|
| Includes expenses? | No | Yes |
| Best for | Quick comparisons | Actual return analysis |
| Typical Singapore range | 2.5%–4.5% | 1.5%–3.5% |
| Deducts vacancy? | No | Yes |
| Deducts maintenance? | No | Yes |
Worked Example
Based on a $1,500,000 property renting at $3,800/month, the gross yield is 3.04%. After a 15% expense ratio ($6,840/year), net yield drops to 2.58%.
Why It Matters
Understanding the difference between gross and net yield prevents overestimating your rental returns. Many listings quote gross yield, which can be 20-30% higher than your actual take-home yield after expenses.
Where to Find This on ShiokNest
- Property detail pages
- Buy-to-Rent ROI Calculator
- End-to-End Investment Calculator
Look for the tooltip icon next to this metric on ShiokNest for a quick reminder of its definition.
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Frequently Asked Questions
What is a good rental yield in Singapore?
Why is net yield lower than gross yield?
This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of March 2026. Check official sources for the latest.