Beijing gross rental yields

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Gross rental yields: if you are renting an apartment or a house in Beijing, this article can help you to understand rental prices key drivers in Beijing. The Gross rental yield is calculated as follow: Total yearly gross rent divided by the house price (expressed in percentages). 

Since 2013, China is experiencing some changes in property, house and real estate prices. And of course, this affects the gross rental yields! GlobalPropertyGuide is updating the China Gross rental yield every February (check table below for February 2015).
A few years ago, gross rental yields in all categories of Beijing residential compounds located in Chaoyang, Dongcheng, Xicheng were above 9%, and ranged from 9.5% to 13% for villas. Today, gross rental yields in Beijing are below 2.5%. Chaoyang, Dongcheng and Xicheng are high-end and often expat favorites districts and therefore yields must be much lower in suburbs or less attractive areas.

If the decrease of the gross rental yield is not a good news for landlords / real estate owners, this is a good sign for those renting a flat, apartment or villa in Beijing: rents are not increasing so fast while real estate market prices are still high. Still you have some exceptions and even records in real estate transactions, like we have seen in the news this summer with a courtyard sold in Beijing at more than 500 000 RMB / square meter

However for real estate experts, gross rental yields below 3% may be a danger signal and precede a bubble or market crash. In China, it seems that the market is relatively stable and a gross rental yield around 3% may just indicate that the market ebullience is over: prices are already so high that it is difficult to conceive they will keep growing indefinitely. 

  Last Updated: Feb. 11, 2015
BEIJING- Apartments COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
120 sq. m. n.a. 2,318 n.a. n.a. 17.82
200 sq. m. n.a. 4,506 n.a. n.a. 22.53
300 sq. m. n.a. 6,147 n.a. n.a. 20.49
Districts researched:
Beijing: Chaoyang, Dongcheng, Xicheng
Source: Global Property Guide 

 

If you are looking for residential lease, such as Apartments for Rent or Serviced Apartment in Beijing, villa or courtyard for rent, SCOUT Real Estate team will guide you in your property search, offering you best Beijing Housing options and help you to negotiate lease terms according to the changing real estate market reality.

If you own a flat, apartment or villa in the best compounds of Beijing, SCOUT Real Estate can introduce you tenants. If you are leaving China, you may also need to sell your apartment (actually in Beijng, as a foreigner, you must sell your property as you are not allowed to rent it). Our team will not only help you to sell it, but also handle all paperwork related the real estate transaction, including getting the money out of China!

 

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I am living in China since 2009 and in Beijing since 2011. I am sharing my experiences for other expatriates to make their stay in Beijing more enjoyable. As I am writing this blog for SCOUT Real Estate agency, I am also computing updates about the Real Estate market in Beijing, not only on residential properties, but as well on commercial locals and offices. Hope you enjoy your reading!