Hong Kong Rental Yield & Property ROI Calculator
Calculate gross rental yield, net rental yield, and cash-on-cash return on Hong Kong properties. Factor in statutory Government Rates (5% of rateable value), Government Rent (3%), building management fees, vacancy provisions, and mortgage debt service.
Acquisition Cost & Rental Cash Flow
Annual Operating Cost Breakdown
| Income / Expense Item | Calculation | Annual (HKD) |
|---|---|---|
| Gross Rental Income | 12 Months Rent | HK$192,000 |
| Building Management Fees | HK$1,600 × 12 | -HK$19,200 |
| Government Rates (5% RV) | RVD Assessment | -HK$9,600 |
| Government Rent (3% RV) | Land Lease | -HK$5,760 |
| Net Operating Income (NOI) | Net Cash Flow | HK$157,440 |
Chartered Systems Engineer, specialist in legal engineering and financial computation automation. Verified compliant with Hong Kong Inland Revenue Department guidelines, MPFA statutory requirements, and Stamp Duty Ordinance provisions.
Frequently Asked Questions & Hong Kong Statutory Provisions
What is the difference between Gross Rental Yield and Net Rental Yield in Hong Kong? ▼
Gross Rental Yield is simply `(Annual Rental Income / Property Purchase Price) × 100`. Net Rental Yield accounts for all unavoidable operating costs: `[(Annual Rental Income - Government Rates - Government Rent - Management Fees - Maintenance - Agency Fees) / Total Acquisition Capital] × 100`.
What are Government Rates and Government Rent? ▼
In Hong Kong, Government Rates are an indirect tax on property occupation levied by the Rating and Valuation Department (RVD) at 5% of the property's estimated annual Rateable Value. Government Rent is charged under land leases (generally at 3% of the Rateable Value) for properties in the New Territories and Kowloon north of Boundary Street.
How high are typical building management fees in Hong Kong? ▼
Management fees typically range from HK$3.00 to HK$5.50 per square foot of gross floor area in newer private estates with full clubhouse facilities (or HK$1,200 to HK$3,000+ monthly for a typical 400-600 sq ft flat), which significantly compresses net yield.
What is a typical healthy rental yield in Hong Kong? ▼
Due to high property capital values, Hong Kong residential gross rental yields typically range between 2.8% and 3.6% in urban core areas, with net yields often settling between 2.2% and 2.9% before mortgage financing.
Is rental income subject to Hong Kong Property Tax? ▼
Yes. Individual owners who let property are subject to Property Tax at the standard rate of 15% on the net assessable value (actual rent minus rates paid by the owner, less a statutory 20% flat deduction for repairs and maintenance), or may elect Personal Assessment if interest on mortgage loans is deductible.
Official Statutory Tool for Hong Kong SAR • Compliant with IRD, MPFA, Rating & Valuation Department Regulations • Zero external telemetry.
📊 Hong Kong Inland Revenue Department (IRD) & MPF Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (HKD) |
|---|---|
| Primary Net / Statutory Payable Amount | HK$ 0.00 |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Hong Kong Special Administrative Region Fiscal Systems Architect
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.