Moderate rental yields in Santiago and Viña del Mar
November 22, 2015
|Last Updated: Nov. 22, 2015|
|COST (US$)||YIELD (p.a.)||PRICE/SQ.M. (US$)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|80 sq. m.||202,320||833||4.94%||2,529||10.41|
|120 sq. m.||332,520||1,181||4.26%||2,771||9.84|
|200 sq. m.||523,000||2,268||5.20%||2,615||11.34|
|125 sq. m.||163,750||n.a.||n.a.||1,310||n.a.|
|205 sq. m.||260,965||n.a.||n.a.||1,273||n.a.|
|VIÑA DEL MAR -
|70 sq. m.||129,990||512||4.72%||1,857||7.31|
|90 sq. m.||165,870||581||4.20%||1,843||6.45|
|120 sq. m.||243,960||791||3.89%||2,033||6.59|
|200 sq. m.||375,000||1,548||4.95%||1,875||7.74|
|Santiago: Providencia, Pedro de Valdivia Norte, Vitacura, Las Condes, El Golf, Lo Barnechea, La Dehesa, La Reina and Ñuñoa
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Gross rental yields in Santiago and Viña del Mar - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are moderate. Gross rental yields are an important consideration even for those who do not intend to become landlords, because a high rental yield indicates that the property market is reasonably priced.
Prices for apartments in Santiago are around USD 2,500 to USD 2,800 per square metre (sq. m.) or around USD 335,000 for a 120 sq.m. apartment. Prices in Viña del Mar are around 30% to 40% lower.
These are reasonable prices, and by the standards of the continent, Santiago has a comparatively low price to income ratio, with a typical 120 sq. m. apartment 17 times average GDP per capita.