S-REIT Yield vs Property Rental Yield Tracker 2026: Singapore Data Report

Original research comparing S-REIT dividend yields against physical property rental yields across Singapore districts — with real data from SGX, URA, and MAS.

S-REITs outperform physical property rental yields in every major Singapore district in 2026. The average S-REIT dividend yield of 5.9% (iEdge S-REIT Leaders Index, May 2026) is nearly double the average gross condo rental yield of 3.2% in the Core Central Region. Even the highest-yielding suburban districts — like D14 Geylang at 4.2% gross — fall short of the lowest-yielding blue-chip S-REIT, Parkway Life REIT at 4.5%.

Not financial advice. All figures are for educational reference only. Data as at Q1–Q2 2026 unless noted. Sources: SGX, URA Q1 2026 statistics, fund annual reports, PropertyGuru, 99.co.

Table of Contents

Executive Summary

This is The Kopi Notes’ inaugural S-REIT Yield vs Property Rental Yield Tracker — an original data report comparing two of the most popular income-generating asset classes for Singapore investors in 2026.

We tracked the trailing 12-month dividend yields of 15 major S-REITs listed on the SGX and compared them against gross rental yields for private residential condominiums across 10 key Singapore districts, using URA Q1 2026 data and current market rents.

The headline finding is stark. The market-cap-weighted average S-REIT yield of 5.9% exceeds gross condo rental yields in every single district we studied — including high-yielding suburban districts like D14 Geylang (4.2%) and D18 Tampines (4.0%). When you factor in property costs like maintenance fees, property tax, agent commissions, and vacancy periods, the net rental yield gap widens further to 3–4 percentage points in favour of S-REITs.

That said, this is not a simple “REITs beat property” story. Physical property offers leverage (80% LTV mortgages), capital appreciation upside, and tangible utility. The purpose of this tracker is to give Singapore investors a clear, data-driven baseline for comparing income yields — not to declare one asset class the winner.

Methodology

This report uses data from four primary sources, all publicly available and verifiable.

S-REIT dividend yields: We selected the 15 largest S-REITs by market capitalisation listed on the SGX. Yields are calculated as trailing 12-month Distribution Per Unit (DPU) divided by the unit price as at the end of May 2026. All yield data is sourced from SGX filings, GrowBeanSprout’s June 2026 S-REIT tracker, and individual REIT investor relations pages.

Property rental yields: Gross rental yields are calculated as (annual rental income ÷ property purchase price) × 100. Rental data comes from URA Q1 2026 real estate statistics and median transacted condo prices from PropertyGuru and 99.co as at Q1 2026. We focus on private non-landed residential condominiums, which are the most comparable asset class to S-REITs for income investors.

Net rental yield adjustments: To arrive at estimated net rental yields, we deduct: property tax (10% on annual value for non-owner-occupied), maintenance fees (~S$350/month average), agent commission (1 month per 2-year lease), and a 5% vacancy allowance. These are industry-standard assumptions used by PropertyGuru and IRAS.

HDB rental yields: Included for context only. HDB rental yields (4.7–5.6% gross) are attractive but come with significant restrictions — minimum occupation period, subletting rules, and income ceiling considerations — making them fundamentally different from S-REIT investing.

S-REIT Dividend Yields: The 2026 Landscape

Singapore has 42 REITs and property trusts listed on the SGX with a combined market capitalisation of over S$100 billion, according to REITAS. For this tracker, we focus on the 15 largest by market cap — the blue-chip names that most retail investors hold in their portfolios.

The iEdge S-REIT Leaders Index, which tracks major S-REITs, yields approximately 5.9% as at May 2026. That is well above the 10-year Singapore Government Securities (SGS) benchmark yield of 2.8% and the CPF Ordinary Account interest rate of 2.5%. For income-seeking investors, if you are looking for the best S-REITs in Singapore 2026, these 15 names are the starting point.

Source: SGX filings, GrowBeanSprout S-REIT tracker, individual REIT investor relations pages. Yields as at May 2026, trailing 12-month DPU basis.

The range is wide: from Parkway Life REIT’s 4.5% (a premium healthcare REIT priced for defensive stability) to CapitaLand China Trust’s 8.2% (reflecting the higher risk premium investors demand for China exposure). The sweet spot for most Singapore income investors sits in the 5.5–6.5% range, where you’ll find industrial and diversified REITs like CapitaLand Ascendas REIT, Mapletree Industrial Trust, and Mapletree Pan Asia Commercial Trust.

Crucially, S-REIT distributions are tax-exempt at the personal level for Singapore resident individual investors. Distributions paid out of tax-transparent income carry no withholding tax. This makes the headline yield the actual yield you pocket — unlike property rental income, which attracts property tax and other costs.

Property Rental Yields by District

Singapore’s private condo rental yields vary significantly by district and region. The URA Q1 2026 real estate statistics show that rents turned positive for the first time in several quarters, with the residential rental index rising 0.3% quarter-on-quarter.

However, rental yields — which factor in both rents and property prices — remain compressed because condo prices have risen faster than rents over the past three years. Here’s what the numbers look like across Singapore’s key districts.

Source: URA Q1 2026 real estate statistics, PropertyGuru and 99.co median transacted prices and asking rents, Q1 2026. Net yields estimated after property tax, maintenance, agent fees, and 5% vacancy.

The pattern is clear. Prime districts (CCR) like Orchard (D9) and Bukit Timah (D10) offer the lowest rental yields at 2.3–2.8% gross. City fringe (RCR) districts like Geylang (D14) and Katong (D15) sit in the middle at 3.6–4.2%. Suburban (OCR) districts like Jurong (D22) and Tampines (D18) top the list at 4.0–4.5%.

But even the best-performing D22 Jurong at 4.5% gross (about 3.2% net) falls short of the average S-REIT yield of 5.9%. That gap of 1.4 to 3.6 percentage points is the central finding of this report.

Head-to-Head: S-REIT vs Rental Yield Comparison

Let’s put both asset classes side by side. Below, we compare the yield range of each S-REIT sector against the gross rental yield of the most comparable property district type. This is the core data table of this report.

Source: TKN analysis based on SGX, URA Q1 2026, PropertyGuru, 99.co, CommercialGuru data. S-REIT average is market-cap-weighted iEdge S-REIT Leaders Index yield. Property yields are gross unless stated.

The yield gap is most dramatic in prime districts, where a D10 Bukit Timah condo yields just 2.3% gross against an average S-REIT yield of 5.9% — a difference of 3.6 percentage points. Even when we compare against higher-yielding suburban condos (4.2% average in OCR), S-REITs still lead by 1.7 percentage points.

If you are building a passive income Singapore portfolio focused purely on yield, S-REITs deliver materially more income per dollar invested than physical property — before accounting for the hassle and cost of being a landlord.

Key Findings

Finding 1: The yield gap is widest in prime districts at 3.4 percentage points

CCR condo rental yields (2.5% average) versus S-REIT yields (5.9% average) produce a gap of 3.4 percentage points. A Singapore investor with S$1 million allocated to income-generating assets would earn approximately S$59,000 per year from S-REITs versus S$25,000 from a prime district condo — a difference of S$34,000 per year. That’s before property costs eat into the rental figure further.

Finding 2: Even suburban condos underperform S-REITs on yield

The highest-yielding condo district we tracked — D22 Jurong at 4.5% gross — still falls 1.4 percentage points short of the S-REIT average. On a net yield basis (after property tax, maintenance, agent fees, vacancy), the gap widens to approximately 2.7 percentage points.

Finding 3: Industrial S-REITs offer the strongest yield advantage

Industrial REITs (CapitaLand Ascendas, Mapletree Industrial Trust, AIMS APAC) yield 6.0–6.7%, compared to industrial/warehouse physical property yields of 4.5–5.5%. The gap here (approximately 1.2 percentage points) is narrower than residential, but S-REITs still win — and without the headache of managing tenants, maintaining properties, or dealing with the JTC regulatory framework for industrial land.

Finding 4: HDB rental yields come closest to S-REIT yields — but with restrictions

HDB flats in mature estates like Geylang (5.1% yield), Kallang/Whampoa (4.9%), and Hougang (4.8%) are the only property type that approaches S-REIT territory. However, HDB rental comes with strict subletting rules: a minimum occupation period of 5 years, subletting approval required from HDB, and a maximum subletting period. These constraints make HDB rental yields less “investable” in the traditional sense.

Finding 5: S-REITs offer tax-efficient income; property does not

S-REIT distributions paid from tax-transparent income are not subject to withholding tax for Singapore resident individual investors. By contrast, rental income from property is subject to income tax at your marginal rate (up to 22% for income above S$320,000), and the property itself attracts annual property tax of 10–20% on the annual value for non-owner-occupied properties. This tax differential further widens the effective yield gap in favour of S-REITs. You can use our Singapore retirement calculator to model the impact of tax-efficient income on your retirement timeline.

Sector Analysis: Industrial vs Retail vs Office vs Healthcare REITs

Not all S-REITs are created equal. The yield and risk profile varies significantly by sector. Here is how each S-REIT sector stacks up against the corresponding physical property type.

Industrial REITs: 6.0–6.7% yield

Industrial S-REITs like CapitaLand Ascendas REIT (6.0%) and Mapletree Industrial Trust (6.6%) benefit from long-weighted average lease expiry (WALE), high occupancy rates above 90%, and structural demand from logistics and data centres. The comparable physical industrial property yield is 4.5–5.5%, meaning industrial REITs offer a 1.0–2.0 percentage point premium — while being entirely hands-off for the investor.

Mapletree Industrial Trust is a standout here. It posted a DPU of S$0.1271 in 2026, and its portfolio includes a growing allocation to data centre properties across Singapore and North America — a structural tailwind driven by AI compute demand.

Retail REITs: 5.3–6.8% yield

Retail S-REITs like Frasers Centrepoint Trust (5.3%) and Starhill Global REIT (6.8%) hold suburban malls, downtown retail podiums, and mixed-use developments. FCT’s occupancy hit 99.8% in 1HFY26 — essentially fully let. The comparable retail shophouse yield is 3.0–4.0% for freehold properties, making retail REITs significantly more attractive for income alone.

Office REITs: 5.6–6.1% yield

Keppel REIT (6.1%) and Suntec REIT (5.6%) focus on Grade A CBD office space. CBD Grade A office rents reached S$12.04–S$12.40 per square foot per month in early 2026, according to Cushman & Wakefield. However, owning office space directly yields only 3.0–3.5% for most investors due to the very high capital outlay required. Office REITs provide access to this asset class at a fraction of the cost.

Healthcare REITs: 4.5% yield

Parkway Life REIT is Singapore’s only listed healthcare REIT, yielding 4.5% — the lowest among our S-REIT sample. However, it compensates with exceptional DPU stability (14 consecutive years of DPU growth), long WALE, and near-zero vacancy. There is no direct physical property equivalent for healthcare assets that retail investors can access, making this a unique advantage of the REIT structure.

Data Centre REITs: 5.2–7.7% yield

Keppel DC REIT (5.2%) and Digital Core REIT (7.7%) represent a sector with no direct physical property comparison for retail investors — you cannot easily buy a data centre building. The AI and cloud computing boom has driven strong demand for data centre capacity across Asia, and these REITs give Singapore investors exposure to a theme that would otherwise require institutional-scale capital. If you are interested in how technology REITs fit into a broader portfolio, our guide to the best S-REITs in Singapore 2026 covers sector allocation strategies.

District-by-District Breakdown

Let’s look at five key districts in detail — three representing different rental yield tiers, plus two that are popular with property investors.

D9 Orchard / River Valley — Gross rental yield: 2.5%

D9 is Singapore’s prime shopping and entertainment district. A typical 2-bedroom condo here costs S$2.5–3.0 million and rents for S$5,500–6,500 per month. The gross yield of 2.5% is the second-lowest among our tracked districts. After costs, net yield drops to roughly 1.5% — meaning your S$3 million condo earns you about S$45,000 a year in net rental income. That same S$3 million in a diversified S-REIT portfolio at 5.9% would generate approximately S$177,000 per year — nearly four times more cash income.

D14 Geylang / Eunos — Gross rental yield: 4.2%

D14 has emerged as a favourite among yield-conscious property investors. Lower entry prices (S$1.0–1.5 million for a 2-bedroom) and strong tenant demand from nearby CBD workers push gross yields to 4.2%. This is the highest condo rental yield among RCR districts. However, it still trails S-REITs by 1.7 percentage points on a gross basis and roughly 2.9 percentage points on a net basis.

D22 Jurong / Boon Lay — Gross rental yield: 4.5%

With the Jurong Lake District development and Jurong Region Line expansion, D22 has seen rising rental demand. At 4.5% gross, it offers the highest condo rental yield among the 10 districts we tracked. However, even this yield underperforms the 5.9% S-REIT average. The capital outlay for a Jurong condo (S$1.2–1.6 million) also ties up significantly more cash than a diversified REIT portfolio.

D10 Bukit Timah / Holland — Gross rental yield: 2.3%

The landed homes and luxury condos of D10 command the lowest rental yields in our study at 2.3% gross. Property prices here are among the highest in Singapore — S$3.0–5.0 million for a condominium, S$8–15 million for landed. Investors in D10 are betting on long-term capital appreciation, not income. For pure yield comparison, D10 comes in 3.6 percentage points below S-REITs.

D18 Tampines / Pasir Ris — Gross rental yield: 4.0%

D18 is a mature heartland district with strong transport links (Tampines MRT hub, Changi Airport proximity). A 3-bedroom condo here costs S$1.3–1.7 million and rents for S$3,800–4,500 per month. The 4.0% gross yield is attractive by OCR standards but still 1.9 percentage points below the S-REIT average. For investors building passive income in Singapore, S-REITs deliver more income per dollar deployed.

Investor Implications: When to Choose REITs Over Property

This data does not mean property is a bad investment. It means that for pure income yield, S-REITs win — convincingly. But total return includes capital appreciation, and here property has historically held its own.

Choose S-REITs when:

• Your primary goal is passive income and you want the highest yield per dollar invested
• You want diversification across property sectors (industrial, retail, office, healthcare, data centres) without buying multiple properties
• You prefer liquidity — you can sell S-REIT units on SGX within seconds, while selling a property takes months
• You want to start small — you can invest in S-REITs with as little as S$100 through a brokerage account with platforms like Syfe or through platforms with a Endowus referral code
• You want tax-efficient income — S-REIT distributions are tax-exempt for Singapore resident individuals

Choose physical property when:

• You can leverage effectively — an 80% LTV mortgage means you control S$2 million of property with S$400,000 cash, amplifying both income and capital gains
• You are targeting long-term capital appreciation in a high-growth district
• You want a tangible asset that you or your family can use (owner-occupied properties have their own utility beyond yield)
• You are comfortable with the illiquidity, management responsibilities, and higher upfront costs (stamp duty, legal fees, renovation)

Consider a blended approach: Many Singapore investors hold both S-REITs and physical property. The S-REIT allocation generates steady, liquid, tax-efficient income, while the property allocation captures leverage-amplified capital growth. If you hold Singapore T-bills or Singapore Savings Bonds for your risk-free allocation, adding S-REITs provides the next rung up on the risk-return ladder with significantly higher yields.

Not financial advice. S-REITs carry market risk — unit prices can fall, DPUs can be cut, and sector-specific downturns can impact individual REITs. Property carries liquidity risk, concentration risk, and is sensitive to interest rate cycles. Always assess your own risk tolerance and financial situation before investing. Data as at Q1–Q2 2026.

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