Uncertainty clouds the market as restrictions tighten over the first quarter and expat demand dwindles.
- The luxury residential leasing market has been very quiet over the first quarter, with rents on Hong Kong Island recording a fall of 2.6%, while luxury rents in Kowloon and the New Territories declined by 3.7% and 4.0% respectively.
- The rental falls in Hong Kong Island apartments have been minor so far, with Mid-Levels (-2.9%), Pokfulam (-2.6%), The Peak (-1.4%), Happy Valley/ Jardine’s Lookout (-2.3%), Southside (-2.7%) slipping modestly as landlords have been reluctant to discount rents too soon.
- Rents for Kowloon and New Territories apartments recorded more significant declines over the quarter, with Ho Man Tin/Kowloon Tong (-5.3%), Discovery Bay (-4.2%), Sha Tin/ Tai Po (-4.2%), Sai Kung (-3.7%), Tsim Sha Tsui/Hung Hom (-3.4%) all recording sharp falls.
- A growing number of landlords have decided to put their properties up for sale even with existing tenancies, given the underlying market uncertainties.
- Major landlords of townhouses are still holding firm as availability remains extremely tight typically for budgets above HK$200,000 per month where minimal rental movements have been recorded.