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Despite the marginal rental increases over the quarter, uncertainty remains over the scale of departures after the end of the school year this summer.
- Luxury apartment rents ended their eight consecutive quarters of decline in the second quarter of 2021, with rents on Hong Kong Island, Kowloon and the New Territories rising marginally by 0.5%, 0.3% and 0.8%.
- All districts on Hong Kong Island recorded mild rental increments in Q2/2021, with Mid-Levels (0.7%) registering the largest rental increase, followed by Pokfulam (0.5%) and The Peak (0.5%).
- All submarkets in Kowloon and the New Territories recorded rental increases except Tai Po/Shatin, which was affected by the completion of new developments in Kau To Shan.
- We are seeing few Mainlanders in the leasing markets, but PRC sales activity is picking up.
- An active IPO pipeline and demand for wealth management services is supporting demand from finance and professional services tenants while unaffordable housing is leaving more locals in the leasing market.
- In Q2/2021, the highest monthly residential rent record was broken by 73 Mount Kellett Road (HK$1.6 million a month) and super luxury units are still in demand given the availability of high-quality houses remains tight.