Just stumbled across this article on MoneyControl by Ashutosh Limaye at Jones Lang LaSalle India comparing rental yields across cities in Asia and Bombay against London, New York and Tokyo.
I have been wanting to run a more thorough survey of rental yields across different Asian property markets like cities listed below, but the single-city surveys I have done in rental yields in Hong Kong, Shenzhen and New York go deeper into seeing how rental yields vary on different cross sections of those cities’ property markets. In Hong Kong, I would have come up with a rental yield between 2.5% – 3.5% for example, but that just shows that data is more difficult to come by in property than in stocks and bonds.
What I find most remarkable glancing at this table is that Mumbai and Manila stand out as having the most radical divergence between rental yield and interest rates – interest rates in India around 8-12% are well above the 3.5% rental yield next to Mumbai, while the 6.9% rental yield next to Manila is about double the 10-year Philippine Peso government bond yield of 3.5%. This alone doesn’t convince me to drop everything and start buying apartments in Makati, but will probably open one of my browsers to property searches there…
