Rental yields: What to expect?

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EXCLUSIVE: Property rental yields in Bangkok are not as high as you might imagine, and certainly not as high as other cities within Southeast Asia.

Crowdsourcing price comparison website Numbeo.com suggests that Bangkok property investors can expect rental yields of 4.10 percent for city centre properties. Outside the city this drops to just 3.86 percent.

So which city in Southeast Asia currently offers the best yields?

Surprisingly perhaps, that accolade goes to Jakarta with city centre rental yields of 6.92 percent according to the website. Manila follows close behind with 6.75 percent rental yields in the city.

Ho Chi Minh City (5.18 percent) and Kuala Lumpur (4.89 percent) also outrank yields in Bangkok, with Singapore – at 2.45 percent, bringing up the rear of the seven cities ranked by the website.

Yes, some developers are currently tempting buyers and investors with guaranteed yields of as much as 10 percent fot two years or more, but buyers and investors need to understand what to expect when those guarantees expire. For some it will mean a substantial decline in income.

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