Yield Benchmarks by Property Type
How Rental Yield is Calculated
Gross Yield = (Annual Rental Income ÷ Purchase Price) × 100
Net Yield = (Annual Rental Income − Annual Costs) ÷ Purchase Price × 100
Annual costs to deduct: property tax (~10% of annual value), maintenance/service charges, agent commission, and a vacancy allowance of ~1 month per year for quality properties.
📊 Worked Example — GATE+ Style Unit
Illustrative only. Actual rent, costs and yields vary by unit, market conditions and tenant. Verify with agent.
What Drives Industrial Rents Higher
| Factor | Rent Impact | Why It Matters |
|---|---|---|
| Direct Ramp Access | +15–25% vs flatted | Logistics tenants pay for operational efficiency |
| Ceiling Height (5.5m+) | +10–20% | Enables mezzanine, racking, heavy machinery |
| 3-Phase Power (100A+) | +10–15% | Required by most manufacturing tenants |
| Green Mark Certification | +5–15% | MNC tenants with ESG mandates require it |
| MRT Proximity | +5–10% | Workforce access — JRL uplift ahead for Tukang |
| Full Remaining Lease | +5–10% | Tenants prefer long-lease buildings for continuity |
GATE+ checks every yield driver: B2 ramp-up with direct access to all 10 floors, high ceiling clearances, Green Mark Platinum 2021, Tukang MRT (under construction), full 33-year leasehold from 2025. View unit specifications →
Industrial vs Residential — The Case for Industrial
Singapore residential property yields 2–3.5% gross. Industrial consistently outperforms at 4–6%+ — with zero ABSD. A Singapore Citizen buying a second residential property pays 20% ABSD — on a S$1.2M property that's S$240,000 gone before you earn a dollar of rent, an immediate ~2% annual yield drag for years.
Industrial has no ABSD at any ownership count, for any nationality. Every buyer is on an equal footing.
Strategies to Maximise Industrial Yield
- Buy new launch pre-TOP — GATE+ pre-2029 pricing represents a discount to completed market values; you capture the appreciation
- Install a mezzanine — adds 30–50% GFA at fit-out cost, directly boosting effective yield on capital
- Sign 3-year leases with step-up clauses — annual escalation of 3–5% provides rental security and inflation protection
- Target ESG-mandated MNC tenants — Green Mark certified buildings command premiums from creditworthy, stable tenants
Frequently Asked Questions
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