Hong Kong Residential Leasing

Rents in Kowloon and the mid-market have continued to rise as high-end/townhouse rents on the island have softened.

July 2014

 
  • Luxury apartment rents on the island fell by 2.6% over the quarter alongside weakening demand from the financial sector.
  • Townhouse rents fell more heavily by 3.7% in Q2 alongside rising vacancy rates.
  • Properties in the HK$40,000 to HK$60,000 per month range are the most active, while other budget bands are quiet.
  • Kowloon continued to enjoy a 'flight to value' and rents in the area rose marginally over the quarter against trend.
  • As international banks continue to consolidate, this is having a knock-on effect on the upper end of the leasing market.
  • Demand for temporary accommodation weakened alongside slow hiring. Hotel-like and apartment-like serviced apartment rents fell by 0.2% and 1.1% in Q2/2014 respectively.
  • We maintain our forecast of a 15% drop in luxury apartment rents over 2014 as a whole, with townhouse rents slipping by 20%.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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