Short answer：There is no universal acceptable rental yield. Identify whether the measure is gross yield, yield after expenses or cash flow after borrowing before comparing similar properties.
State the complete formula
Hypothetical monthly rent of HK$20,000 on a HK$6 million purchase gives 4% gross annual yield with no vacancy. It excludes acquisition costs, management, repairs, tax and financing. If acquisition expenses enter the denominator, use that basis consistently.
Keep tax and cash flow separate
Actual management and repair costs belong in a cash-flow record, while Hong Kong property tax has statutory deduction rules. Principal payments reduce cash and debt and should not be counted twice in total returns.
Before deciding
- Model actual occupied months
- Identify who pays each expense
- Compare similar uses, locations and periods
Sources and method
Sources support the specific rules described. Checklists and hypothetical calculations are editorial explanations, not measured market results or individual approvals.
Revision：Removed unsupported experience, case outcomes and statistics; corrected the topic-specific rules and limitations described above.
Scope：General information only, not personalised legal, tax, immigration, admissions or investment advice.