Rental Yield in HK

Posted by zhugeliang (103 days ago)

Hi all,

I've heard alot about being a landlord.

However, how do the yields in HK compare? Is it worth it? Are you essentially betting on a capital appreciation and seating on negative yield?

From my simple (but arguably naive) calculations seems that most yields here are about 2% ++ unless you've bought the house a while back..

what do you guys think?

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Tags return on investment, rental yield

Posted by ebow3d (102 days ago)

I'd like to hear about that too.

Posted by DaHKGKid (102 days ago)

I've heard depending on where you live mostly is how the yield is estimated. Luxury homes in NT's (my area) have shown 6+% yields for some time in current market say last 18-24 months however wait for about 8-12 months to buy and you will get back in on the low, max your rental yield and grab the appreciation too on the way back up say 3 years out.

Posted by walkup2 (102 days ago)

Normally the guideline is 5% gross return and yes there is an expectation of capital appreciation which should not be an auto factoring in at present. If you have no particular affinity for property or a specific area then you are best staying liquid.

Posted by zhugeliang (96 days ago)

thanks for the replies
seems that Kowloon/NT gives the best returns.. however, I don't know anything about those areas.

I was actually looking at Repulse Bay, I love that area, but in terms of investment, yield seems low at 2+% net.. better off at NT? or even SoHo..

Posted by walkup2 (96 days ago)

IMHO, don't buy into an area you have not made yourself familiar with, partic if not central. There are good reasons why Repulse Bay prices stay up....... Location is critical.....