Hong Kong Residential Leasing

We expect to see rental declines in both 2016 and 2017 given weaker demand alongside an expected increase in supply.

February 2016

 
  • The market has drifted with few, if any, major movements in rents in any market segment.
  • Financial services demand remains sluggish while retailers continue to feel the pinch.
  • The absence of leasing by senior MNC management from banks and financial institutions resulted in the underperformance of townhouse rents compared with apartment rents
  • Rents in Kowloon and New Territories fell by 1.7% and 1.9% respectively given the poor stock market performance and an increase in available stock from newly completed developments.
  • Although we noted some cost-saving demand from Hong Kong Island, rents are expected to fall further in 2016 especially in Yuen Long and Sai Kung
  • Demand for serviced apartments was resilient in 2015 thanks to new office market entrants and expansion demand from existing occupiers, particularly PRC firms.
  • Demand for townhouses will remain weak and we expect the trend for leasing outside traditional core areas to continue.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Two Exchange Square

+852 2842 4573

 

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