|Last Updated: Apr. 15, 2013|
|COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|75 sq. m.||1,798,800||n.a.||n.a.||23,984||n.a.|
|120 sq. m.||2,737,680||6,431||2.82%||22,814||53.59|
|175 sq. m.||4,649,575||9,525||2.46%||26,569||54.43|
|250 sq. m.||7,807,250||13,790||2.12%||31,229||55.16|
|THE PEAK -
|200 sq. m.||8,572,600||12,500||1,75%||42,863||62.50|
|500 sq. m.||13,761,650||22,040||1.92%||39,319||62.97|
|HONG KONG ISLAND - Apartments|
|75 sq. m.||1,911,600||4,673||2.93%||25,488||62.30|
|120 sq. m.||3,010,680||6,493||2.59%||25,089||54.11|
|175 sq. m.||4,940,250||10,029||2.44%||28,230||57.31|
|300 sq. m.||9,880,800||18,141||2.20%||32,936||60.47|
|NEW TERRITORIES - Apartments|
|75 sq. m.||811,350||2,711||4.01%||10,818||36.14|
|120 sq. m.||1,644,960||4,368||3.19%||13,708||36.40|
|200 sq. m.||3,086,400||9,048||3.52%||15,432||45.24|
|KOWLOON TONG -
|75 sq. m.||1,144,275||3,242||3.40%||15,257||43.22|
|120 sq. m.||2,042,280||5,110||3.00%||17,019||42.58|
|200 sq. m.||4,840,400||9,138||2.27%||24,202||45.69|
Midlevels and The Peak are in Hong Kong Island.
Hong Kong Island (other areas): Jardines Lookout , Repulse Bay , Tai Tam, Shouson Hill, and Stanley Beach
New Territories: Clearwater Bay, Sai Kung, Discovery Bay, Gold Coast
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
A rising tide lifts all boats…Hong Kong’s property market rose an amazing 13.7% (in inflation adjusted terms) during the year to the end of Q2 2013. Yet rental yields are lowish, with gross rental yields of from 2% on the Peak to 4.6% for a small New Territories apartment.
Given that the Global Property Guide’s figures are for gross rental yields, i.e., do not make any allowance for periods when the apartment is vacant, for legal costs, administration costs, cleaning and repairs, rental taxes, property taxes, and other taxes, etc, it is safe to say that landlords of high-end apartments in Hong Kong earn very little on their apartments.
The latest year’s 13.7% price rise comes after a rise of 3% during the same period in 2012, and an even more amazing 23% during same period the previous year. One worries how much longer this can continue.
Hong Kong is not a ‘typical’ market. It is a place where the rich choose to park assets in the form of apartments, as part of a diversified asset-safeguard strategy - like Monaco and Singapore. Such markets typically have lower rental yields than more ‘normal’ housing markets.
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