The emergence of “rent-and-sale rights” has not only made it possible for those who cannot afford to buy a home to enter school, but has also led to a gradual shift in attention from home prices to rent. So, what is the current rate of return on rent in hotfields of global investment? Data show that dallas, los angeles, new york, osaka, japan, and tokyo performed well, with rent returns of over 5 per cent. In contrast, the return on rent in the northwards of the front-line cities of china is lower, at about 1. 5 per cent. The rent return on the gate is at the bottom of all cities. If rent is to be paid back, it will take 100 years to invest in property back in xiamen, using the static rate of return of 1 per cent
Since july, “rent-sale rights” have become the most popular term for real estate。
The relevant head of the ministry of housing and construction has made it clear that legislation will be adopted to clarify the rights and obligations of the renting parties, to safeguard their legitimate rights and interests, to establish a system for stabilizing the rent period and rent, and to gradually treat renters on an equal footing with buyers in terms of basic public services。
As a result, attention has gradually shifted from house prices to rents. The right to rent and sell is a good thing for those who have not yet bought a house. And those with two rooms and three rooms are probably most concerned about whether the rent will increase in the future。
So, what is the current rate of return on rent in hot cities around the world? Where is the highest rent return in china
In response, some data have been collated。
If the real rate of return on rent is to be calculated, it should be the one-year rent-maintenance cost/housing price, and here we are directly using the one-year rent/housing price, which would yield slightly higher data, as explained above。
Chart
In general, more than 5 per cent of rent returns belong to a suitable market for investment, with data showing good performance in dallas, los angeles, new york, osaka, japan, and tokyo, with rent returns of over 5 per cent. In contrast, the return on rent in the northwards of the front-line cities of china is lower, at about 1. 5 per cent。
And then we look at the indicative and reference values behind this rent return. (the editor first gave a presentation on 16 international cities, then a presentation on chinese cities, where readers who are not interested in the international segment can go directly down the screen)
1. Dallas (united states)
The return on rental housing in dallas was 7. 35 per cent。
Chart
The average house price in dallas is $233,000, and on the real estate website zillow, the real estate market health index in dallas is 9. 7 and is known as the “very healthy” housing market with close to 10 points, with only 0. 1 per cent negative asset feedback。
This is partly due to the 3. 9 per cent job growth provided by dallas last year and the 6. 2 per cent population growth over the past three years, which is also a long-term good factor for real estate development。
Osaka (japan)
Chart
Compared to tokyo, the return on apartments in osaka was higher at 5. 91 per cent (upscale green line)。
3. Tokyo (japan)
The tokyo capital circle has a rental return of 5. 76 per cent and a high rate of return in the international metropolitan area. In tokyo, the smaller the house, the larger the return on rent, but the smaller the house also requires more maintenance, so the advantage is balanced。
Montreal (canada)
The rental rate of return in montreal was about 5. 09 per cent, the highest rate of return in three canadian cities and high market potential. There are currently high house prices in toronto and vancouver, compared to $318,000 in montreal. As canada's second largest city, more buyers are being attracted。
Chart
Berlin (germany)
In germany, the return on rent was about 3. 72 per cent. The german housing market is strong in europe. Housing prices and rents have risen steadily. Berlin has a vibrant labour market and a slightly lower price than other european capital cities, giving it room for appreciation。
Chart
Los angeles (united states)
The recent rental return in los angeles was 5. 8 per cent. This city, more than new york, has become the hottest market in american property。
Chart
New york (united states)
The overall performance of new york was good, with rent returns of more than 4 per cent. The recent rental return was 5. 08 per cent。
Chart
In manhattan, the housing stock was generally performing well, and when investing in manhattan, the smaller the household size, the more profitable it was, the studio (small single room) rent return could easily reach more than 6 per cent. Overall, there is a slight reversal in the current house prices in manhattan, new york, and rental rates of return are expected to rise somewhat when rents remain constant。
8. Wellington (new zealand)
Over the past year, wellington housing prices have risen by 20 per cent, becoming one of the fastest-growing cities in new zealand and even globally。
Chart
Melbourne (australia)
Melbourne has a rental return of about 4. 5 per cent. Melbourne and sydney, also known as australia's two cities with the lowest rental rates of return in recent years, have remained at a relatively good level。
Chart
Melbourne will be the first big city in australia in 30 years, and the long-term net increase in population will be a major gain。
10. Toronto (canada)
According to the latest reports, the rental market in toronto-based cities remains violent despite signs of diversion. Data from the toronto housing authority indicate that the rent for one room in the second quarter of this year was $1910, a 17 per cent increase over the same period and $1588 for single apartments, a 15 per cent increase over the same period。
Sydney (australia)
Sydney had a rental return of 4. 22 per cent. Despite the marked decline in recent years, the sydney building market remains healthy。
Chart
Vancouver (canada)
After 15 per cent of the “exclusion tax” last year, vancouver, which experienced a six-month readjustment in housing prices, opened up again early this year, resulting in a slight decline in rental returns。
Despite this, vancouver, with a base house price of $998. 7 million, is not easy to achieve a return of close to 4 per cent。
Chart
London (united kingdom)
In london, rent returns can reach 3-4 per cent, which is not easy for the world's central city. While housing prices are currently high in london, rents are equally high, thus ensuring a good level of rental return。
Chart
14, auckland (new zealand)
Auckland has a return on rent of 3. 5 per cent. Over the past five years, housing prices in auckland have risen strongly, rising by 42. 9 per cent. On the other hand, rents rose by only 20 per cent, leading to a decline in returns。
San francisco (united states)
In the case of los angeles, san francisco, where rents are similar, the return on rents in san francisco, which are more expensive, is naturally much lower。
Thus, in san francisco, a large house is to be bought early, but it is relatively difficult to rent it, especially in small households (one bed)。
Singapore
Singapore's return on rental housing was about 3. 2 per cent, up from the same period last year, thanks to the government's easing of the previous crackdown on the housing bubble in march, which led to a continued decline in housing prices. It feels like this is the time to open the door to the rich。
These are the cities with the highest rates of return on rent worldwide. So, what is the return on rent in the major cities of china
Today (20 august), the shibuya trend released the " map of the best return on rent in china " . Data show that rent returns in chinese cities are generally low。
General: the larger the city, the lower the rent return
None of the top 10 cities with rent rates of return has a single or new front line, with only three in the second line and 70 per cent in the third and fourth lines. However, even the first-ranked counterweight (with a return of 4. 23 per cent) has no advantage over the above-mentioned international cities. The four largest first-line cities are all in the lowest-return camps, which is related to excessive housing prices relative to rent。
Chart
Four cities have the lowest rent return in beijing, with 1. 37 per cent ranked 96th in 100 cities, followed by shenzhen (1. 38 per cent), shanghai (1. 48 per cent) and guangzhou (1. 69 per cent). It ranks 94, 89 and 95。
Chart
The rates of return for the new front-line cities are also in the middle, with 15 new top-line cities ranked internally as follows:
Chart
The report states that there is a second-line city that is unique: the gate。
The rent return on xiamen is lower in all cities than in the first-line cities. This was due to the fact that the rent at the gate was kept low (the last year was still falling), but the house price had been raised upwards. If rent is to be paid back, it will take 100 years to invest in property back in xiamen, using the static rate of return of 1 per cent
And if the renter sees it, she'll laugh at it: "you're so stupid and naive, you think i'm really making money on rent? Am i not going to sell the house?"
