Property Market Yields for HK Private Residential Buildings
Based on the data provided in the Hong Kong Property Monthly Supplement Report (November 2024) concerning private residential buildings, we can analyze market trends and changes in yield performance through a detailed interpretation of the figures.
Rental Index Performance(Table 1.3) | Sale Price Index Performance(Table 1.4) |
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Class A (<40 sqm)
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Class A (<40 sqm)
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Class B (40–69.9 sqm)
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Class B (40–69.9 sqm)
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Class C (70–99.9 sqm)
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Class C (70–99.9 sqm)
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Class D (100–159.9 sqm)
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Class D (100–159.9 sqm)
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Class E (>160 sqm)
|
Class E (>160 sqm)
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Yield Trend Analysis
Small Units (Class A): Yield Growth
Class A units show significant rental growth (+5.3%) and price correction (-5.4%), resulting in improved yields. These properties remain highly attractive for investors.
Medium Units (Class B): Steady Performance
Class B units’ rental growth (+6.3%) outpaces their price drop (-3.9%), ensuring a stable and growing yield. They remain a solid choice for balanced investments.
Large Units (Class D and E): Yield Compression
Rental increases for Class D (+4.1%) and Class E (+2.0%) were limited, while their sale prices fell (-2.2% and -4.3%, respectively). These conditions challenge yields for high-end properties.