Tuesday, March 6, 2012

M2 vs rental yield (a private property perspectives)

Can rental yield beat inflation? The answer is a BIG NO! Read all about it here!
This data was taken from The Business Times dated 23, February 2012. Coupled with M2 data from MAS (Monetary Authority of Singapore) with the same time frame, the table above is what u get! 

The second last row (YoY or Year on Year) give u a glimpse of price movement in 1 year time frame. While the last row (diff) shown you the difference between YoY of M2 and the selected property price change movement. The first row (Dev Age) is the number of years the property in the market. As shown here, the older the property, the lesser the rental yield is.The prices are based on psf rental price for each development and the amount in M2 column is in S$ million. 

If we are buying for rental yield and hoping that these rental yield can help u cover inflation, well, forget about it! Let's say Marina Bay Residences, for S$1 that you have put in, your rental yield will give u S$0.92.


No comments:

Post a Comment