Background — A Luxury home (including most SDXQ homes) is comfortable and built for the affluent family, not for multiple blue-collar families. Most tenants in the market are blue-collar people, not affluent families.

• Eg: Big homes near Bayonne parks have very poor NGRY. If 43R has NGRY of 15%, then here is probably below half. To rent out at 15% of 600k, we need to charge 90k/Y.
• Eg: big homes in top school district also suffer similarly. 15% of 800k means 120k/Y rent for a single family!
• Eg: Big homes at Scarsdale suffer similarly. 15% of a 1000K, we need to charge 150k/Y. Note there are only up to 5 bed rooms. It’s a SFH. A single family will not want to pay 150k rental a year.
• Eg: luxury condos at Newport also suffer similarly.

— absolute sqf size

A luxury home has slightly higher psf pricing than regular homes, but twice or even more in sqf size. A 3000 sqf home can house 4 families but only if built as a MFD. Luxury homes are not MFD, therefore very low rental yield.

— For rental yield,

• SFH is lower than 2FH, but SFH is more comfortable for the resident.
• Luxury condo like BGC One Uptown or Chris Ma’s is worse than SFH for rental yield, but sometimes even more comfortable than SFH.
• 2FH has lower rental yield than 3FH, but more comfortable.
• Multiple small rooms in a house has possibly the highest NGRY but is least comfortable with least privacy. Even in Singapore. my rental agents told me small rooms in an HDB flat generate the highest rental yield.