Price-to-Rent Ratio in Singapore: What 35 Means for You
The price-to-rent ratio in Singapore is above 35, which on the usual global scale points to renting as the cheaper monthly choice. Numbeo’s latest Singapore figures put the ratio at 34.91 for the city centre and 35.97 outside it. The ratio is only a starting point, though. Stamp duties, borrowing limits and the region of the island you buy in can change the answer for your own situation.
This guide explains how to calculate the ratio, what the Singapore numbers say, and where the ratio misleads buyers, landlords and renters.
TL;DR
- Price-to-rent ratio is the purchase price divided by one year of rent. Singapore’s figure is around 35, well above the global threshold of about 21 where renting becomes the clearly cheaper option.
- The same figure, flipped, is the gross rental yield: roughly 2.8% to 2.9% on Numbeo’s data, before costs.
- The ratio ignores ABSD, the 55% TDSR cap, LTV limits, maintenance, property tax and vacancy. For many buyers these matter more than the ratio itself.
- Region matters: the CCR, RCR and OCR move at different speeds, so a national average hides the useful detail.
- Use the ratio to screen, then run a full rent-versus-buy model over your real holding period.
Table of Contents
- How the price-to-rent ratio works
- Where Singapore stands in 2026
- Why the headline ratio misleads in Singapore
- Reading the ratio by region
- Who should care about the ratio
- Our perspective
- Check your own numbers
- Frequently asked questions
- Sources
How the price-to-rent ratio works
The formula is simple. Baselane explains it as the median home price divided by the median annual rent for the same market. You can apply it to a single unit just as easily.
Price-to-rent ratio = purchase price ÷ (monthly rent × 12)
A worked example, using illustrative numbers rather than a real listing:
- A condo priced at $2,000,000
- Comparable units renting at $5,000 a month, or $60,000 a year
- Ratio: 2,000,000 ÷ 60,000 = 33.3
The reverse calculation gives the gross rental yield: 60,000 ÷ 2,000,000 = 3.0%. A ratio of 33 and a yield of 3% are the same fact told two ways. Readers who search for the “rent to price ratio” are usually looking for this yield view.
The usual benchmarks
Global rules of thumb, as summarised by Global Property Guide, run like this:
| Ratio | Usual reading |
|---|---|
| Below 16 | Buying tends to be cheaper than renting |
| 17 to 20 | Costs are broadly comparable |
| 21 and above | Renting tends to be cheaper |
These cut-offs were built for markets where a buyer pays a small transaction cost, borrows at a regular rate and sells whenever they like. Singapore has none of those conditions in plain form, which is why the number needs context.
Where Singapore stands in 2026
The figures below come from Numbeo’s Singapore page, last updated 27 August 2026, and are crowd-sourced estimates rather than official statistics.
| Measure | City centre | Outside centre |
|---|---|---|
| Price-to-rent ratio | 34.91 | 35.97 |
| Gross rental yield | 2.86% | 2.78% |
| Monthly rent, 1-bedroom apartment | S$3,820 | S$2,680 |
| Monthly rent, 3-bedroom apartment | S$7,531 | S$4,936 |
The city-centre and outside-centre ratios are close. That tells you something: prime addresses are expensive to buy and expensive to rent, so the gap between the two is roughly the same everywhere.
A ratio of 35 means that renting a comparable home for 35 years would cost the same as the purchase price, ignoring all other costs. On the standard reading, Singapore is firmly in renting territory. Yet people keep buying, because a home is also a store of value, a form of forced saving and, for citizens, a route to a property they can occupy for decades.
Prices and rents move at different speeds
The ratio changes only when prices and rents diverge. URA’s first-quarter 2026 release showed non-landed rentals up 0.4%, after a 0.1% fall in the previous quarter. For 2025 as a whole, the private residential price index rose 3.3%, the smallest annual gain in some years, while rentals grew more slowly.
In the second quarter of 2026, Global Property Guide reports, prices rose 0.50% on the quarter while the URA rental index rose 0.7%. That is a small reversal: rents grew faster than prices for one quarter. One quarter is not a trend, but it shows the ratio is not locked in a single direction.
For a closer look at who is renting and how much space is available, see our review of the Singapore rental market and its 6.4% vacancy rate.
Why the headline ratio misleads in Singapore
The ratio treats buying as a simple swap of rent for a mortgage. In Singapore, five things get in the way.
1. ABSD changes the entry price
Additional Buyer’s Stamp Duty is paid on top of the purchase price, and it depends on who you are and how many homes you own. IRAS publishes the current rates:
| Buyer | 1st property | 2nd property | 3rd and later |
|---|---|---|---|
| Singapore Citizen | 0% | 20% | 30% |
| Singapore PR | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity | 65% | 65% | 65% |
A citizen buying a first home pays no ABSD, so the ratio is roughly accurate for them. An investor buying a second property pays 20% or more on top, so the true price-to-rent ratio of the deal is much higher than the quoted one. For a foreign buyer, a 60% duty turns a ratio of 35 into an effective figure that would need a very different strategy to justify. Our guide to what foreign buyers must budget for 60% ABSD sets out the details.
Buyer’s Stamp Duty is separate and applies to everyone. How valuation affects it is covered in our note on valuation risk and BSD.
2. TDSR caps what you can borrow
Most buyers do not pay cash. MAS sets the Total Debt Servicing Ratio at a maximum of 55% of the borrower’s monthly income for property loans where the option to purchase was granted on or after 16 December 2021. All your monthly debt repayments, including the new mortgage, must fit within that limit.
This means the ratio can say “buying is close to renting” while the bank says “you cannot borrow enough”. Many first-time buyers confuse the two. We explain how the cap defines a price band in our TDSR guide.
3. LTV limits set the cash you need
Loan-to-value limits decide how much of the price you must fund yourself. The first housing loan is limited to 75% of value, and the second to 45%, as laid out in our LTV overview. On a $2,000,000 purchase, a 75% loan leaves $500,000 to find in cash and CPF, before stamp duties. That capital could earn a return elsewhere, a cost the ratio does not capture.
4. Running costs are missing
The ratio uses the price and the rent only. Baselane notes that it leaves out maintenance, property taxes and vacancy. In Singapore, add maintenance fees for condominiums, property tax, insurance, agent fees at tenancy and the months a unit sits empty. A 3.0% gross yield can drop meaningfully once these come off.
Owner-occupiers get some relief. IRAS announced a one-off rebate of 15% for owner-occupied HDB flats and 10%, with a cap, for owner-occupied private residential properties in 2026. The rebate is small against a purchase price, but it is a real offset to the ownership cost for residents, not for landlords.
5. Rules on who can live in the unit
For landlords, rental income depends on how many tenants can legally share. HDB and URA extended the relaxed occupancy cap for larger HDB flats and private homes until 31 December 2028, allowing up to eight unrelated persons. Check the rules for your specific unit before building a yield forecast on room-by-room rents. Short stays are a separate matter: see our four checks for short-term rentals.
Reading the ratio by region
The national average hides how different the three market segments are. URA separates the Core Central Region (CCR), the Rest of Central Region (RCR) and the Outside Central Region (OCR). In the first quarter of 2026, URA reported that non-landed prices in the OCR rose 2.2%, against 0.6% in the CCR.
In the second quarter, rents in the CCR rose 1.2%, the RCR was unchanged and the OCR fell 0.3%, a reversal of the first quarter when the suburbs led. The practical lesson is to compute the ratio for the specific region and property type you are considering, using recent comparable sales and rental contracts, not a national figure.
A simple method for one property
- Find three to five recent sale prices for similar units in the same project or street.
- Find three to five recent rental contracts for the same unit type.
- Take the median of each and apply the formula.
- Subtract realistic annual costs from the rent to see a net yield.
- Add ABSD and BSD to the price, then compute the ratio again.
The gap between step 3 and step 5 shows you how much policy changes the investment case.
Who should care about the ratio
First-time buyers
Citizens buying a first home pay no ABSD, and the home is a place to live as well as an asset. For them the ratio is mostly a reminder that the monthly cash cost of owning is high compared with renting. The decision then rests on how long you will stay. Our rent versus buy model for a 10-year hold walks through the arithmetic.
Investors
For landlords the ratio is the inverse of yield. A yield near 3% is thin against current borrowing costs, so most returns depend on capital growth, which is not guaranteed. The ABSD on additional homes weighs heavily here. Commercial investors compare the same ratio on offices and shops, where rents and leases work differently.
Expats and renters
For people who may leave Singapore within a few years, a ratio above 35 plus a 60% duty for foreigners makes renting the practical choice. Read our guide to renting as an expat for rules, areas and costs.
Sellers
Sellers can use the ratio from the buyer’s side. If rents in your area are weak, buyers will pay less for the same flat. Timing a sale also involves stamp duty, so read about avoiding a surprise Seller’s Stamp Duty bill before you list.
Our perspective
We see the price-to-rent ratio asked about mostly by people who are about to make a large decision and want one number to settle it. There is no such number. In Singapore the ratio has been high for a long time, and buyers have bought regardless, because their circumstances differ from the average.
Our view is that the ratio works best as a question, not an answer. Ask what you would pay in rent for the same home, then ask what the purchase costs once duties, loan limits and holding costs are counted. For many Singapore buyers, the decisive figures are the ABSD you will pay and the borrowing ceiling set by TDSR, not the headline ratio.
We also think sellers and investors should look at the market by segment. A national average tells you little about a specific district. We encourage clients to compare recent transactions and rental contracts on a like-for-like basis, and to run the numbers with duties included before they commit.
— Anderson
Check your own numbers
If you own a property and want to know what comparable units are worth, our free property valuation gives you a starting figure at no cost. If you are comparing homes to buy or rent, browse our residential listings or the commercial listings, or start from the Register Today homepage to buy, sell or rent. We can also discuss your ABSD position with you before you shortlist.
Frequently asked questions
What is a good price-to-rent ratio in Singapore?
On global benchmarks, a ratio below 16 favours buying and above 21 favours renting. Singapore sits above 35, so no part of the market is “good” by that scale. A buyer here accepts a high ratio in return for ownership, stability and the chance of capital growth.
How does the price-to-rent ratio relate to rental yield?
They are inverses. Divide 100 by the ratio to get the gross yield: a ratio of 35 equals about 2.9%. Net yield is lower once maintenance, tax and vacancy are deducted.
Is a 3.5% rental yield good in Singapore?
A gross yield of 3.5% equals a ratio of about 28.6, which is better than the national figures near 35. Whether it is good depends on costs, loan interest and the ABSD you paid. Compare the net yield to your financing cost, not only the gross figure.
Should I rent or buy in Singapore given the ratio?
If you may move within a few years, renting usually costs less. If you plan to stay for a decade or more and can meet TDSR and LTV requirements, buying can make sense even at a high ratio. Speak to a bank about your borrowing limit and to a property adviser about duties before deciding.
Sources
- Global Property Guide: Price/Rent Ratio in Singapore
- Global Property Guide: Singapore residential market analysis 2026
- Numbeo: Property prices in Singapore
- Baselane: What is the price-to-rent ratio
- URA: 1st Quarter 2026 real estate statistics
- URA: 4th Quarter 2025 real estate statistics
- URA: Extension of occupancy cap relaxation
- IRAS: Stamp duty
- IRAS: One-off property tax rebate 2026
- MAS: TDSR thresholds for property loans
