In October, the rental yield of urban properties in Hong Kong continued to decline to 3.53%, falling for two consecutive months

Yang Mingyi, Senior Co-Director of the Research Department at Centaline Property, pointed out that in October 2025, the Centaline City Rental Yield CRI reported a latest figure of 3.53%, a month-on-month decrease of 0.03 percentage points, marking a total decline of 0.07 percentage points over two consecutive months. The rental growth in October slowed down, while property prices benefited from the resumption of interest rate cuts, leading to a significant increase in property price growth, which outpaced rental growth, resulting in a slight decline in the yield. However, the CRI yield remains the fourth highest in nearly fourteen years, hovering around the level of December 2011. In the fourth quarter, the rental off-season continues to see sustained demand for rental properties, keeping rents stable at high levels, while property prices continue to rise steadily. It is expected that by the end of this year, the yield could stabilize above 3.4%.

In October 2025, the H mortgage rate was 3.375%, and the rental yield during the same period was 0.155 percentage points higher than the H mortgage rate. Although the gap between the two has narrowed, it has been six consecutive months where the supply has been equal to the rental. The two interest rate cuts in September and October brought the H mortgage rate down to 3.25% in November. In December, local banks did not follow the U.S. rate cuts, maintaining the H mortgage rate at 3.25%. It is anticipated that the CRI yield will continue to be higher than the H mortgage rate in the fourth quarter, and the supply and rental balance will remain unchanged.

In October, the CRI_Mass yield reported 3.67%, a month-on-month decrease of 0.03 percentage points, still the fifth highest in nearly 14 years since January 2012. The CRI (small and medium-sized units) yield reported 3.64%, a month-on-month decrease of 0.02 percentage points, still the fifth highest in nearly 14 years since December 2011. Both the CRI_Mass yield and the CRI (small and medium-sized units) yield have declined for three consecutive months, with cumulative declines of 0.08 and 0.07 percentage points, respectively. The CRI (large units) yield reported 2.95%, a month-on-month decrease of 0.08 percentage points, still the third highest in over 15 years since September 2010.

In the four districts, two yields fell, one rose, and one remained stable. The Kowloon CRI_Mass yield reported 3.66%, a month-on-month decrease of 0.08 percentage points, marking a total decline of 0.12 percentage points over two consecutive months, still the seventh highest in nearly 14 years since January 2012. The Hong Kong Island CRI_Mass yield reported 3.64%, a month-on-month decrease of 0.05 percentage points, still the fifth highest in nearly 15 years since December 2010. The New Territories West CRI_Mass yield reported 3.71%, remaining stable month-on-month after three consecutive months of decline, still the sixth highest in over 13 years since August 2012. The New Territories East CRI_Mass yield reported 3.70%, a month-on-month increase of 0.07 percentage points, ending two months of consecutive decline, marking the third highest in over 13 years since September 2012.

Among the 143 component housing estates, 96 reported rental yields higher than the H mortgage rate (3.375%) in October, accounting for nearly 67% of the estates, with 33 estates achieving rental yields of 4 cents or more, an increase of 5 from September The top ten estates with higher returns are: Tsuen Wai Garden 4.86%, Fortune Garden 4.71%, Tak Po Garden 4.65%, Whampoa New Village 4.62%, Ka Fai Garden 4.54%, Wah King Garden 4.53%, Nam Fung New Village 4.52%, Lung Choi Garden 4.52%, Riverside Garden 4.48%, and Poly Bay 4.39%. In terms of major estate returns, Heng Fa Chuen 3.77%, Kornhill Garden 3.74%, Ocean Park 3.55%, Taikoo Shing 3.41%, Mei Foo Sun Chuen 4.22%, Whampoa Garden 4.15%, Metro City 3.86%, Laguna City 3.81%, Shatin First City 4.03%, Taihu Garden 3.54%, Ying Hai 3.47%, Ming City 3.27%, Shang Yue 3.76%, Jiahu Villa 3.71%, Ying Wan Garden 3.68%, Yoho Town 3.29%