Hong Kong Residential Leasing

Landlords are now often more willing to accept a 5% to 10% discount on renewal rents rather than rising vacancy.

January 2015

 
  • Average luxury apartment rents have remained stable approaching the year-end, with little leasing activity. 
  • Rents on Hong Kong Island rose by 0.6% in Q4/2014, and recorded a full-year decline of 6.3%. We believe luxury rents in Hong Kong are likely to have bottomed out and alongside the recovery of the Grade A office market, our forecast is for broadly stable rents in the near term.
  • Townhouse rents fell by 1.6% in Q4/2014, with many vacancies persisting for more than a year.
  • Properties with rents under HK$60,000 per month are the most active, while other bands are quiet.
  • Leasing demand from banking and finance firms continues to shrink.  Only a relatively small number of high-budgets tenants are from the senior management grades of financial services.
  • The exodus of expatriates continued in 2014.
  • Many expatriates are more willing to relocate to traditionally non-expat districts.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director / Head of Research & Consultancy
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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