Short answer：With rent and cost definitions unchanged, a higher property price lowers rental yield. This is yield compression, not proof that total investment returns must fall or prices will keep rising.
Keep numerator and denominator consistent
Hypothetical annual rent of HK$240,000 gives a 4% gross yield at HK$6 million and 3% at HK$8 million. Vacancy, expenses, financing and tax are excluded.
Separate current value from original cost
Yield on current value and yield on acquisition cost answer different questions. A hold-or-sell decision should consider the net money available today, rather than treating a low historic purchase price as protection against present risks.
Before deciding
- Label gross versus net yield
- Align rent and price dates
- Separate rental return from sale gains or losses
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.