Rental & Investment
Twin Tower Rental Yield: How to Calculate It (With Worked Examples)
Quick answer
Rental yield is annual rent divided by purchase price. Using Oct–Nov 2026 asking figures, a Twin Tower studio at RM750,000 renting for RM2,650 a month gives about 4.2% gross, and a 2-bedroom at RM1.08 million renting for RM3,200 about 3.6%. Net yield after running costs and vacancy is typically 1–1.5 points lower.
In this guide
- Key takeaways
- What is rental yield and why does it matter?
- How do you calculate gross rental yield?
- Gross yield sensitivity: how price and rent move the number
- How do you calculate net rental yield?
- What is cash-on-cash return and how does a loan change it?
- Which Twin Tower layout gives the best yield?
- Scenarios: how different buyers should read the yield
- Common mistakes when calculating rental yield
- Why location supports Twin Tower’s long-term rental case
- Conclusion
- Sources
Rental yield is the single number most investors use to compare condos, yet it is often quoted without showing the working. This guide explains how to calculate rental yield for a JB condo, using Twin Tower Residence in Bukit Chagar as the worked example: gross yield, net yield and cash-on-cash return, each with the arithmetic laid out step by step. All prices and rents are public portal asking figures from October–November 2026 and are indicative only.
Key takeaways
- Gross yield = annual rent ÷ purchase price × 100. At Twin Tower Residence, asking figures point to an indicative gross yield of roughly 3.5%–4.5%.
- Studios show the highest yields because rent per square foot is highest; the 2-bedroom offers the deepest tenant pool.
- Net yield subtracts vacancy, maintenance fees, quit rent, assessment and repairs — budget for it honestly.
- Cash-on-cash return looks at what you actually put in after a loan, and is the number that matters for your own wallet.
- Yield is only half the story: a freehold, completed building beside the Bukit Chagar RTS station also offers own-stay flexibility and long-term appeal.
What is rental yield and why does it matter?
Rental yield measures the income a property produces as a percentage of its price. It lets you compare a RM750,000 studio with a RM1.08 million two-bedroom on equal terms, and compare property with other uses of your money such as fixed deposits. There are three versions worth knowing:
- Gross yield – rent before any costs. Quick and easy, good for screening.
- Net yield – rent after running costs and an allowance for vacancy. Closer to reality.
- Cash-on-cash return – net cash flow divided by the cash you actually invested (down payment plus costs). The investor’s real return.
Many advertisements only quote gross yield. That is fine for comparisons, as long as you remember it is the “best case” view.
How do you calculate gross rental yield?
The formula is simple:
Gross yield (%) = (monthly rent × 12) ÷ purchase price × 100
Worked example 1: Twin Tower studio
Take a studio (599 sq ft) priced at RM750,000 — the middle of the RM720,000–780,000 asking range seen on Mudah and EdgeProp in Oct–Nov 2026 — and an asking rent of RM2,650 a month, the middle of the RM2,300–3,000 range on Mudah in October 2026.
- Annual rent: RM2,650 × 12 = RM31,800
- Gross yield: RM31,800 ÷ RM750,000 = 0.0424 → 4.24%
Worked example 2: Twin Tower 2-bedroom
Take a 2-bedroom (882 sq ft) at RM1,080,000, within the RM1.00m–1.15m asking range, rented at RM3,200 a month, within the RM3,000–3,500 range.
- Annual rent: RM3,200 × 12 = RM38,400
- Gross yield: RM38,400 ÷ RM1,080,000 = 0.0356 → 3.56%
Worked example 3: Twin Tower 2+1 bedroom
Take a 2+1 bedroom (1,054 sq ft) at about RM1,020,000, rented at about RM4,000 a month — both figures from the limited listings seen in Oct–Nov 2026.
- Annual rent: RM4,000 × 12 = RM48,000
- Gross yield: RM48,000 ÷ RM1,020,000 = 0.0471 → 4.71%
Because there are only a few 2+1 listings, treat that last figure with caution; a single well-priced unit can swing it. Overall, asking figures point to the ~3.5%–4.5% band we quote across the site.
Gross yield sensitivity: how price and rent move the number
Small changes in purchase price or achieved rent shift the yield noticeably. The table shows gross yield across the asking ranges for the two most common layouts.
| Layout & price | Rent RM2,300 | Rent RM2,600 | Rent RM3,000 | Rent RM3,200 | Rent RM3,500 |
|---|---|---|---|---|---|
| Studio @ RM720,000 | 3.83% | 4.33% | 5.00% | – | – |
| Studio @ RM750,000 | 3.68% | 4.16% | 4.80% | – | – |
| Studio @ RM780,000 | 3.54% | 4.00% | 4.62% | – | – |
| 2-bed @ RM1,000,000 | – | – | 3.60% | 3.84% | 4.20% |
| 2-bed @ RM1,080,000 | – | – | 3.33% | 3.56% | 3.89% |
| 2-bed @ RM1,150,000 | – | – | 3.13% | 3.34% | 3.65% |
Calculated by us from indicative portal asking figures (Oct–Nov 2026). Your actual figures will depend on the unit you buy and the rent you achieve.
How do you calculate net rental yield?
Net yield deducts the costs an owner actually bears. For a Malaysian strata unit the usual items are:
- Vacancy allowance – a month between tenants is a sensible planning figure.
- Maintenance fee and sinking fund – charged monthly by the building management based on the unit’s share units. Use the exact figure on your unit’s statement.
- Quit rent and assessment (cukai tanah and cukai taksiran) – yearly government charges.
- Repairs, insurance and replacements – air-conditioner servicing, appliance repairs, fire insurance.
- Agent fee if you use an agent to find tenants.
In the worked examples below we use round illustrative numbers for these costs so the arithmetic is clear. They are not Twin Tower’s actual charges — ask the seller for the latest statements and substitute the real amounts.
Net yield: studio example
| Item | Calculation | RM per year |
|---|---|---|
| Gross rent | RM2,650 × 12 | 31,800 |
| Less vacancy (1 month) | RM2,650 × 1 | −2,650 |
| Less maintenance + sinking fund (illustrative RM400/month) | RM400 × 12 | −4,800 |
| Less quit rent + assessment (illustrative) | −1,200 | |
| Less repairs + insurance (illustrative) | −1,000 | |
| Net rent | 22,150 | |
| Net yield | RM22,150 ÷ RM750,000 | 2.95% |
Net yield: 2-bedroom example
Gross rent RM38,400; less one month vacancy (RM3,200), illustrative maintenance and sinking fund of RM500 a month (RM6,000), quit rent and assessment (RM1,500) and repairs and insurance (RM1,200). Net rent = RM38,400 − RM11,900 = RM26,500. Net yield = RM26,500 ÷ RM1,080,000 = 2.45%.
Net yields are typically one to one-and-a-half percentage points below gross yields for city-centre condos. That is why investors in a location like Bukit Chagar also look at long-term demand drivers, not just this year’s net figure.
What is cash-on-cash return and how does a loan change it?
Most buyers use financing, so what really matters is the return on the cash you put in. Let’s continue the studio example with an illustrative 70% loan at an assumed 4% interest over 35 years (your bank’s actual margin and rate will depend on your profile; Malaysian citizens and foreigners are treated differently, so check with the bank).
- Loan: 70% × RM750,000 = RM525,000
- Monthly instalment (4%, 35 years): about RM2,325; per year about RM27,895
- Of the first year’s instalments, about RM20,872 is interest and about RM7,023 repays principal
- Net rent before financing: RM22,150
- Cash flow after instalments: RM22,150 − RM27,895 = about −RM5,745 a year (about −RM479 a month)
So in this example the tenant covers roughly 80% of the instalment and the owner tops up under RM500 a month, while about RM7,000 of loan principal is paid down in year one. That is a common pattern for prime city-centre property in Malaysia: modest monthly cash flow, with the owner building equity in a freehold asset. With a larger down payment the cash flow turns positive; for instance, a 50% loan (RM375,000) on the same terms costs about RM19,925 a year, leaving roughly RM2,225 a year positive.
Which Twin Tower layout gives the best yield?
| Layout | Indicative gross yield (from asking figures) | Strength | Who it suits |
|---|---|---|---|
| Studio 599 sq ft | ~3.5%–5.0% | Highest rent per sq ft, lowest entry price | Yield-focused investors, first-time investors |
| 2 Bedroom 882 sq ft | ~3.1%–4.2% | Largest tenant pool, most rental listings | Investors who prioritise steady occupancy |
| 2+1 Bedroom 1,054 sq ft | ~4.7% (few data points) | Scarce supply, family and home-office appeal | Investors who may later own-stay |
| 3 Bedroom 1,216 sq ft | Insufficient data | Rarely listed, own-stay demand | Families buying to live in |
The studio usually wins on paper; the 2-bedroom wins on depth of demand. Read our studio guide and 2-bedroom guide for the details of each layout, and check current asking rents in our rent guide.
Scenarios: how different buyers should read the yield
If you are a first-time investor
Focus on net yield and cash flow, not just gross. A studio has the lowest entry price and the highest yield on paper, which keeps your commitment manageable.
If you are a Singaporean or foreign buyer
Non-resident individuals are taxed at a flat 30% on net rental income in Malaysia, after allowable deductions such as loan interest, quit rent, assessment, fire insurance and ordinary repairs. Factor this into your net yield and get advice from a tax agent. Johor’s purchase rules also matter: subject to Johor state consent and minimum-price rules (generally RM1 million for foreigners), and many Twin Tower units — including studios — are below RM1m, so check eligibility first. If you plan to use the unit yourself after the RTS opens, the yield is a bonus on top of convenience. See our guide for Singaporean buyers.
If you plan to retire in JB later
A 2+1 or 3-bedroom can be rented now and lived in later. Here the yield helps carry the property until you move in.
Common mistakes when calculating rental yield
- Using the highest advertised rent instead of a realistic achieved rent.
- Forgetting vacancy and furnishing costs.
- Comparing a gross yield at one project with a net yield at another.
- Ignoring tax on rental income.
- Judging a building on yield alone, without weighing tenure, completion status and location.
Why location supports Twin Tower’s long-term rental case
Yield is a snapshot; demand is what sustains it. Twin Tower Residence is a completed (2023), freehold serviced residence beside the Bukit Chagar station of the RTS Link, which will connect to Woodlands North in about five minutes and is now expected to start passenger service in February 2027. It is within walking distance of the JB CIQ, JB Sentral, City Square and KOMTAR JBCC. These features keep it on the shortlist of cross-border tenants. If you want to see live numbers — current asking prices and rents for available units — WhatsApp Darren and we will share the latest figures and floor plans, or browse our listings.
Conclusion
To calculate rental yield for a JB condo, start with gross yield (annual rent ÷ price), then subtract real running costs for net yield, and finally factor in your loan to get cash-on-cash return. Using Oct–Nov 2026 asking figures, Twin Tower Residence shows an indicative gross yield of about 3.5%–4.5%, with studios at the top of the range and 2-bedrooms offering the broadest tenant demand. Do the arithmetic with the actual unit’s figures, and weigh it alongside the location next to the RTS.
Sources
Frequently asked questions
What is a good rental yield for a condo in Johor Bahru?
There is no single benchmark, but city-centre condos close to transport usually trade at lower yields than suburban units because buyers also pay for location and long-term demand. At Twin Tower Residence, asking figures point to roughly 3.5%–4.5% gross. Compare like with like — gross against gross, net against net — and weigh tenure and completion status too.
Should I use asking rent or achieved rent in my yield calculation?
Use a realistic achieved rent. Asking rents on portals are what owners hope to get; signed rents can be lower, especially for units with basic furnishing. A sensible approach is to take the middle of the asking range for your layout, then run a second calculation at the lower end to see how your returns hold up.
Do furnishing costs affect rental yield?
Yes. Furnishing is part of your total investment, so add it to the purchase price when calculating yield, or treat it as an upfront cost in your cash-on-cash return. Good furnishing usually lets a unit rent faster and at the upper end of the range, which can more than offset the extra cost over a few years.
How does the RTS Link affect rental yield at Twin Tower?
The RTS Link does not change the yield formula, but it can influence both sides of it — demand for rentals from cross-border commuters and buyer interest in the area. Service is now expected to start in February 2027. We do not forecast specific numbers, so recalculate with current asking rents and prices once the line is running.
Is rental income from a Twin Tower unit taxable?
Yes. Rental income in Malaysia is taxable. Resident individuals are taxed at progressive rates on total income, while non-resident individuals pay a flat 30% on net rental income after allowable deductions such as loan interest, quit rent, assessment, fire insurance and ordinary repairs. Rules change, so check with LHDN or a tax agent before filing.
