Rental Yield vs Mortgage Interest Rate in First-Tier Cities

Wallstreetcn
2025.11.27 05:30
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Founder Securities pointed out that the rental yield in 50 key cities will rise to 2.08% in 2025, but the rental yield in first-tier cities is lower than the national average mortgage interest rate of 3.06% in the third quarter. This interest rate inversion has led to a loss of support for housing prices. Referring to the experience in Hong Kong, when mortgage rates are lower than rental yields, market expectations tend to stabilize. Domestic banks have a relatively low net interest margin, and government subsidies for mortgage interest can stabilize housing prices without harming banks' net interest margins