Country LI Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

7.0x

Ratio of property prices to annual income

Rental Yield

3.7%

Average annual rental return

Price to Rent

24.0

Ratio of property prices to annual rent

Price Growth

1.9%

Annual change in property prices

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Country LI Real Estate trends and investment implications

Market Overview

Country LI's property market is showing signs of an affordability strain with a high price-to-income ratio and declining rental yields. The increased price-to-rent ratio suggests that buying is less advantageous compared to renting. Investors should be cautious as the market appears to be nearing a peak, with potential for a correction if economic conditions change.

Key Findings

Data-driven insights

•Price to Income Ratio is at 6.96, marking a 16.0% increase since 2021, indicating reduced housing affordability.
•Rental Yield has decreased by 8.0%, now at 3.68%, falling below attractive investment thresholds compared to historical norms.
•Price to Rent Ratio stands at 24, a 20.0% increase, suggesting buying is becoming less economically viable than renting.
•Building permits have decreased by 2.4%, indicating a potential future supply constraint.

Market Trends

Historical patterns

•Rental yields are declining steadily, making property investment less attractive at current prices.
•Apartment prices in city centers have risen by 16.0%, driven by demand despite affordability concerns.
•A decrease in building permits suggests a potential future supply bottleneck, which could sustain or further inflate prices if demand remains steady.

For Investors

Actionable takeaways

•Consider waiting for a potential market correction before making significant investments, as current prices may be at a peak.
•Focus on properties with higher yields or potential for value addition, as 3.68% yields are not compelling in the current market.
•Prioritize renting over buying in the short term, given the elevated price-to-rent ratio.
•Monitor economic indicators closely; a change in economic conditions could trigger a market correction.

Market Context

Country LI's property market is maturing, with high demand driving prices despite declining affordability. While it offers growth opportunities, investors must navigate potential risks associated with an overheated market.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.