Hong Kong Residential Leasing

Transactions volumes have held up over the summer, and stable rents are forecast in the short term.

October 2014

  • Average luxury apartment rents have remained largely flat during the summer, and as a result more tenants have signed leases. 
  • Rents on Hong Kong Island dropped by only 0.3% in Q3/2014, after a 2.6% drop in Q2/2014.  We see luxury rents in Hong Kong moving into a late downswing in the cycle and our forecast is for broadly stable rents in the near term.
  • Townhouse rents fell by 2.5% in Q3/2014 with elevated vacancy levels in the market.  Townhouse rents remain weak.  
  • Properties of under HK$100,000 per month are driving transactions volumes, while demand from budgets of over HK$100,000 remains weak.
  • The inflow of expatriates is falling and luxury transactions are mainly being driven by upgraders.
  • Improved transport infrastructure is making Kowloon more appealing, with rents on Kowloon side up 3.4% in Q3/2014.

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573


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