The characteristics of Mainland rental demand became apparent in the second quarter as new builds and high-end renovations proved attractive while traditional core locations and sweeping city or harbour views also appealed.
- Luxury apartment rents on Hong Kong Island recorded growth of 1.0%, while rents in Kowloon and the New Territories rose by 2.5% and 0.5% respectively.
- Hong Kong’s leasing market is increasingly being driven by Mainlanders and ‘New Hongkongers’, Mainlanders who have been living in Hong Kong for seven consecutive years and have become permanent residents.
- The citywide lockdowns in Shanghai and across multiple cities in China has inevitably meant that many Mainlanders have been looking to move to Hong Kong or further overseas to avoid confinement.
- In terms of expat moves to Singapore, the lack of availability of suitable accommodation, the limited availability of openings in the better-known international schools and the inconvenience of having to open the same job position to locals before foreigners can apply, are creating barriers.
- Luxury rents by district presented a mixed picture in Q2/2022, with The Peak (+2.5%), Mid-Levels (+2.4%) and Southside (+1.2%) recording increments, while Happy Valley/ Jardine’s Lookout (-2.1%) and Pokfulam (-1.6%) recorded declines over the quarter.
- The serviced apartment market was given a boost by Mainland graduates who are being picked up in numbers by both PRC and international banks, asset managers and law firms. Availability in the HK$20,000 to HK$30,000 per month bracket is particularly tight.