Hong Kong Residential Leasing

Tenants are no longer favouring The Peak over all other districts, with an increasing number expressing a preference for the Southside or even Sai Kung.

January 2014

 
  • Luxury apartment rents continued in a downward trend alongside the weakening office market, falling by 1.8% at the end of the year on the back of low leasing volumes due to the ‘holiday effect’.
  • Apartments in the prime districts of The Peak and Southside have been the most affected, with average rents dropping by 10.0% and 7.1% respectively over 2013.
  • Rents in Kowloon were mainly supported by solid leasing markets in areas with strong school networks, for instance, Kowloon Tong.
  • Looking ahead in 2014, kamaco expects a 5% decline in luxury apartment rents alongside a weakening office market with no net new hiring. Given that office rents in Central are soon to bottom out, we expect to witness an upswing in the financial sector, resulting in luxury rents bottoming out in late 2014 or early 2015.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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