Hong Kong Residential Leasing

Major landlords have been quick to grasp the implications of ebbing leasing demand and asking rents have dropped substantially, while aggressive rental discounts on renewal are being offered to maintain occupancy levels.

May 2014

 
  • Luxury apartment rents on the island fell by 4.1% over the quarter, while townhouse rents fell by 4.9%.
  • Few expats are arriving in the territory these days, put off by high living costs and muted job prospects.
  • Areas such as Yuen Long and Fanling are benefiting as the more adventurous go in search of better value, although numbers remain fairly modest.
  • We also note a steady flow of Mid-Levels relocators to the east – to areas such as Tai Hang, Tin Hau and Quarry Bay.
  • In light of the recent ebb in demand and given that luxury apartment rents have already fallen by 4% in Q1, we are revising our full-year forecast down. We are now anticipating a fall of 10% to 15% over 2014.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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