Commercial & Industrial Property Yield Calculator Singapore 2026
Gross Yield, Net Yield, NPI & Cash-on-Cash — Factory, Office, Shophouse & Retail Strata
Calculate gross yield, net yield, and NPI (Net Property Income) yield for Singapore commercial and industrial property — flatted factories, ramp-up warehouses, strata offices, shophouses, and retail mall units. Unlike residential property, non-residential property tax is a flat 10% of Annual Value (not progressive), there is no ABSD for commercial/industrial, and yield benchmarks are significantly higher (4%–7% gross vs 3%–4.5% for residential condos). This calculator includes PSF (per square foot) rental analysis, non-residential BSD, service charge, vacancy, agent commission, and cash-on-cash return on your invested capital.
Enter floor area for PSF analysis (price per sqft and rent per sqft). Leave blank if you only need yield metrics.
Non-residential property tax (flat 10% of Annual Value where AV = annual rent) is calculated automatically. No ABSD for commercial/industrial. BSD on purchase is also auto-calculated.
Enter your property type, price, floor area, monthly rent, and expenses to see gross yield, net yield, NPI yield, and cash-on-cash return.
Commercial & Industrial Property Investment Singapore 2026 — Why C&I Yields Outperform Residential & Key Tax Differences
Singapore’s commercial and industrial property sector offers significantly higher gross yields than residential condos — flatted factories yield 4.5%–6%, strata offices 3%–4.5%, and retail units 3.5%–5.5%. The main appeal: no Additional Buyer’s Stamp Duty (ABSD) on commercial or industrial purchases, regardless of how many properties you own. This makes C&I property a favoured asset class for investors who have already used up their ABSD-free residential quota. The key cost difference: non-residential property tax is a flat 10% of Annual Value — simpler but impactful at scale.
Commercial vs Industrial vs Residential — Investment Comparison
| Property Type | Gross Yield | Net Yield | ABSD | Prop Tax |
|---|---|---|---|---|
| Flatted Factory (B1) | 4.5%–6.0% | 3.5%–5.0% | None | 10% flat |
| Warehouse (B2) | 4.0%–5.5% | 3.0%–4.5% | None | 10% flat |
| Strata Office | 3.0%–4.5% | 2.0%–3.5% | None | 10% flat |
| Shophouse | 2.5%–4.0% | 1.5%–3.0% | None | 10% flat |
| Private condo (residential) | 3.5%–4.5% | 2.0%–3.0% | 20%–60% | NOO 10%–20% |
Non-Residential Property Tax 2026
| Property Category | Tax Rate | How Computed |
|---|---|---|
| Non-residential (commercial, industrial) | Flat 10% of AV | AV = estimated annual rent |
| Residential (owner-occupied) | 0%–4% progressive | Progressive on AV |
| Residential (non-owner-occupied) | 10%–20% progressive | Progressive on AV |
Non-residential property tax is flat at 10% regardless of AV size — simpler than residential but impactful for high-rent commercial properties. AV = IRAS’s estimate of the annual market rent the property could fetch.
How This Commercial & Industrial Yield Calculator Works — NPI, Benchmarks & PSF
Step 1 — Select Property Type and Enter Price / Rent
Select your property type (industrial, warehouse, strata office, shophouse, or strata retail). Enter the purchase price and optional floor area (for PSF analysis). Enter the monthly gross rent. The calculator auto-computes BSD and the non-residential property tax (10% flat on annual rent as AV estimate).
Step 2 — Enter Running Expenses
Enter monthly service charge/MCST fees, agent commission months, vacancy rate (use 8%–15% for commercial — higher than residential), and repair/capex budget. All costs are deducted to arrive at Net Operating Income (NOI).
Step 3 — See Gross, Net, and NPI Yield
The three yield metrics: Gross yield (annual rent ÷ price); Net yield (NOI ÷ price); NPI yield (NOI ÷ total acquisition cost including BSD and legal — the metric used by Singapore REITs and institutional investors). Each is benchmarked against typical ranges for your property type.
3 Real Singapore C&I Yield Examples — Flatted Factory, Strata Office & Heritage Shophouse
S$750K Flatted Factory, S$5,000/mo
S$1.2M Strata Office, S$4,500/mo
S$3.5M Shophouse, S$9,000/mo
3 Expert C&I Tips — JTC Restrictions, PSF Benchmarks & REIT vs Direct
Check JTC Restrictions Before Buying Industrial Property
Singapore’s industrial land is primarily managed by JTC Corporation (Jurong Town Corporation). JTC industrial properties (B1/B2 zoning) have strict usage restrictions: tenants must use the space for approved industrial activities. Renting to non-industrial users (offices, retail, F&B) is not permitted and carries penalties. Before buying, verify: (1) is the property under JTC or private ownership? JTC-owned land has a head lease (30–60 years) that limits the effective tenure; (2) what is the permitted use (B1 for clean industrial; B2 for heavier industry including logistics); (3) can 40% of floor area be used for ancillary office (common for B1, restricted for B2). Ignoring JTC restrictions can make your property nearly impossible to lease legitimately.
Use PSF Benchmarks — Not Total Rent — to Evaluate Value
Different sizes and locations make direct rent comparison meaningless — always compare on a per-square-foot basis. Singapore C&I rental benchmarks (monthly, psf): B1 flatted factory (Ubi, Macpherson): S$2.50–S$4.00 psf; ramp-up logistics warehouse (Tuas, Jurong): S$1.80–S$3.00 psf; strata office (CBD): S$8–S$15 psf; strata office (Paya Lebar, Orchard fringe): S$5–S$9 psf; shophouse ground floor (Chinatown, Tanjong Pagar): S$12–S$25 psf. If your target property’s rent PSF is significantly above market (tenant paying above-market rent), factor in downside risk when the lease expires — the next tenant may pay much less. The entry price PSF is equally important — use both metrics together.
S-REIT Industrial vs Direct Investment — The 5% Yield Question
Before buying direct industrial property, compare against industrial S-REITs (ESR-LOGOS, Mapletree Industrial, Sabana REIT): distribution yields of 5%–8%, fully managed, no BSD, no JTC compliance, no vacancy risk, fully liquid. Direct industrial at S$1.2M might yield 4% net after BSD (S$26,600), annual management effort, and JTC compliance. The same S$1.2M in ESR-LOGOS REIT at 6% yield = S$72,000 per year with zero management. Direct investment wins if: (1) you can buy below market value (through negotiation or distressed sale); (2) your PSF entry price is competitive enough that appreciation compensates; (3) you have specific tenants who pay premium rents. Otherwise, the REIT dividend yield often beats direct industrial investment net of all costs.