Update : 5% NGRY is lower than other parts of Manila and also other global cities. Two reasons for the lower NGRY — A) luxury studio and B) not a shop.

For the same reasons, Vietnam luxury residential properties are low-yielding, but rental demand is worse than than BGC.

— Hi Raymond,

Nominal gross rental yield is calculated as monthly rent * 12 / salesPrice

I used to think BGC rental yield is 8%-10%. Now I think it’s much lower, more like 5%. I found on Philippines rental websites that One Uptown 33-sqm units are asking for PHP 35000 a month.

If we are lucky to rent out for 12 months, total rental is PHP 420,000 = SGD 10860 = 5.4% of 200k price we paid.

If we factor in vacant periods (could be 1 to 2 months), taxes, wear and tear, we get a net rental yield (NRY). I think 4.5% NRY would be very lucky for us.

(Why so low? I feel it’s because we paid a high price at SGD 200k. Jason got a very good deal.)

Luckily, Chun Tih is on the ground to manage for us, so things are not hopeless.

Luckily, the surrounding area is improving faster than other parts of BGC, so rental might have a chance to increase.