Rental yield is the headline number every investor quotes — and the one most often calculated wrong. Here’s how to do it properly for a One-North condo purchase.
Gross vs Net Yield
Gross yield = annual rent ÷ purchase price.
Net yield = (annual rent − annual costs) ÷ (purchase price + transaction costs).
Almost every agent marketing material quotes gross yield. Almost every serious investor cares only about net yield.
The Inputs You Need
- Purchase price: Your actual transacted price.
- Transaction costs: BSD, ABSD (if applicable), legal fees, agent commission — typically 4–66% of price depending on buyer profile.
- Expected monthly rent: Use Squarefoot, URA Realis or HDB rental statistics for comparable units.
- Vacancy assumption: 1 month per year (8.3%) is standard for investment-grade One-North units; can be as low as 2 weeks for well-located 2BR units.
- Annual costs: maintenance fees, property tax, insurance, income tax on rent, repairs, agent commission at each tenancy.
Worked Example — 2BR at The Hill @ One-North
- Purchase price: S$1.95M
- BSD: ~$63K
- Legal: $3K
- Total cost basis: S$2.02M
- Expected monthly rent: S$6,200 (based on comparable 2BR rentals in One-North)
- Gross annual rent: S$74,400
- Gross yield: S$74,400 ÷ S$1.95M = 3.82%
Now Subtract Annual Costs
- Maintenance fee: S$4,800
- Property tax (10% owner-non-occupier): ~S$5,400
- Insurance: $400
- Repairs/replacement reserve: S$2,000
- Vacancy (1 month): S$6,200
- Agent commission (½ month annualised): S$1,550
- Income tax on rent (assume 15% effective): ~S$8,000
- Total annual costs: ~S$28,350
Net annual income: S$74,400 − S$28,350 = S$46,050
Net yield on cost basis: S$46,050 ÷ S$2.02M = 2.28%
Benchmarks
- Singapore island-wide gross yield (2026): ~3.2%
- District 5 / One-North gross yield: 3.5%–4.2%
- District 9/10 prime gross yield: 2.5%–3.2%
Why One-North Outperforms
The nearby workforce — 50,000+ knowledge workers — creates structural rental demand that outlasts macro cycles. Unlike CBD condos competing for the same tenant pool, One-North units rent to the business park directly, with lower tenant search costs and faster turnover.
What Moves Your Yield
- Unit type: 2BR + Study typically outperform 3BR on yield.
- Layout efficiency: Dumbbell layouts rent faster than long corridor units.
- Facing: Morning sun / unblocked views command +5–10% rental premium.
- Stack position: Lower floors cheaper to acquire, similar rent → higher yield.
To find high-yield stacks at The Hill @ One-North, review the site plan, floor plans, and current balance units.