Rental demand was driven by Mainlanders moving to Hong Kong in the third quarter amid the sporadic lockdowns across cities in China.
- Luxury rents on Hong Kong Island recorded a marginal growth of 1.2%, while rents in Kowloon and the New Territories rose by 1.9% and 0.5% respectively.
- Luxury rents on Hong Kong Island all recorded positive increments in Q3/2022, with Mid-Levels (+0.6%), Pokfulam (+0.6%), Happy Valley/Jardine’s Lookout (+3.2%), Southside (+1.9%) all posting modest growth.
- Demand is being driven by Mainlanders whose focus is on traditional luxury enclaves such as Southside, The Peak and Mid-Levels.
- PRC students are stimulating demand for shared flats in areas like Hung Hom and Ho Man Tin while Japanese expats continue to favour West Kowloon.
- In the serviced apartment market, the worst seems to be over, with rents for hotel-like and apartment-like units rising by 5.1% and 4.1% respectively, and enquiries have risen as quarantine measures have been eased.