Core Insights - The article discusses the investment strategy of an individual named Zhang Qiang, who is considering purchasing a small apartment in Beijing for rental income rather than capital appreciation [1][7] - The current real estate market is characterized by opportunities for stable rental yields, particularly in core urban areas, despite ongoing market volatility [3][6] Investment Strategy - Zhang Qiang is focusing on properties with lower total prices and higher rental yields, specifically targeting small units within the city’s five-ring area [3][5] - He aims for a rental yield of around 4%, which is more attractive compared to larger units that typically offer lower yields due to higher total prices [5][7] Market Dynamics - The demand for small units is increasing, with over 60% of transactions in the market being for properties under 70 square meters, while larger units are less sought after [5][6] - The article highlights that many buyers, including institutional investors, are actively seeking undervalued properties, indicating a competitive market for desirable listings [5][6] Rental Income Focus - Zhang Qiang's investment approach has shifted from relying on property value appreciation to prioritizing monthly rental income as a financial safety net [7][8] - The article emphasizes that the current investment landscape favors properties with high rental yields, especially in light of inflation concerns and low returns from traditional savings [7][8] Professional Investment Considerations - Institutional investors are beginning to show interest in residential properties due to declining commercial real estate returns, although they are still in the early stages of market assessment [6][8] - The article notes that professional investors utilize more complex calculations for return on investment, factoring in various costs such as maintenance and vacancy losses, which can affect overall yield assessments [8]