top of page

Exploring Better Alternatives for Low Rental Yields

Updated: Nov 27, 2023

Hong Kong landlords have experienced persistently low net rental yields after factoring in taxes and property management fees. According to a JLL study, the average net yield for residential properties in Hong Kong declined from 3.1% in 2011 to 2.1% in 2022.


Rental income tax stands at 15% of (annual rental * 80%), and property management fees can range from 2% to 4% of the gross monthly rent.


Considering the choice between:


(a) a residential unit with a low single-digit return; and


(b) a residential MBS (a collection of home mortgages) with high single-digit yield.


Which alternative is preferable for landlords? The key assumption here is that Hong Kong property prices will remain at their current levels for an extended period.




43 views

Recent Posts

See All

1H2024 Recap & 2H Outlook😊

Our 2024 outlook, which was published in December 2023, is available for viewing through the link below: 2024 Outlook: Navigating Uncertainties and Embracing Opportunities We are pleased to provide an

留言


留言功能已關閉。
bottom of page