Guide · Hong Kong landlords
Gross Yield vs Net Yield for Hong Kong landlords
Many Hong Kong listings and conversations lead with Gross Yield. That number is useful as a quick screen, but it ignores the recurring costs of holding a residential flat.
Net Yield is the more honest first filter before you dig into monthly cashflow.
What Gross Yield means
Gross Yield is annual rental income divided by purchase price, expressed as a percentage. It is the headline figure agents and listings often quote — simple, comparable, and incomplete.
Gross Yield = (annual rent ÷ purchase price) × 100
Annual rent ≈ monthly rent × 12
Example (round numbers in HKD):
Purchase price
HK$6,000,000
Monthly rent
HK$20,000
Annual rent HK$240,000
Gross Yield
4.0%
240,000 ÷ 6,000,000
What Net Yield means
Net Yield subtracts recurring ownership costs from annual rent before dividing by purchase price. Once Mortgage Repayment, Management Fees, and Property Tax are included, the percentage often drops sharply from the listing headline.
Net Yield = ((annual rent − annual recurring costs) ÷ purchase price) × 100
Same flat, after illustrative annual costs of HK$120,000 (Mortgage Repayment + Management Fees + Property Tax):
Annual rent
HK$240,000
After costs
HK$120,000
240,000 − 120,000
Net Yield
2.0%
Down from 4.0% gross
Which costs to include
Recurring costs that usually belong in a Net Yield screen: Mortgage Repayment, Management Fees, and Property Tax. Some landlords also include insurance or estimated vacancy.
Usually exclude from a simple yield screen: one-off Stamp Duty, agency commission, and legal fees on a new tenancy. Those matter for cashflow in that month — not the steady yield headline.
This guide is educational only and is not tax or financial advice.
Calculator vs ongoing tracking
Use the free Hong Kong Rental Yield Calculator for a quick Gross vs Net estimate from purchase price, monthly rent, and annual expenses.
Cashflow Positive tracks actual vs normalised monthly cashflow for Hong Kong residential properties — free for 1 property — so you can see whether a flat stays cashflow positive after real inflows and outflows, not only a yield percentage.
Free for 1 property
Start with the free yield calculator, then track monthly cashflow on one property. Upgrade to Pro when you need portfolio yield and unlimited properties.