Even as the rental market grew steadily across major cities, rental yield (the annual rate of return an investor can earn from his capital invested in a property) has long since stagnated to a national average of 3%.
However, the lower the property cost, the higher is the rental yield. Therefore, investing in affordable or mid-segment properties will yield better rental returns (depending on external factors like location, project type, developer‘s brand, etc.)
For the same reason, luxury and super-luxury homes are not at all rewarding from a rental yield point of view.
Despite the relatively low rental yields, residential property investors increasingly prefer to earn a steady rental income instead of selling the property (after appropriate appreciation).
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