These are the 3 main expat groups driving Hong Kong’s residential leasing market

Find out which expats have the biggest budget for monthly rents.

According to a Savills report, Hong Kong’s residential market maintained steady momentum in Q2 2025, driven by new leasing demand from returning expatriates and relocations of existing tenants.

The expatriate community continues to comprise three main groups, each with distinct preferences and budgets.

Learn more in the Savills report:

European expatriates working in finance, including banking and hedge funds, represent the highest-budget group with monthly rents of HK$70,000-80,000. They particularly favour Mid-Levels properties and typically rent larger units to accommodate their families; Asia-Pacific expatriates, predominantly Indian professionals in the information and technology sector, have more moderate budgets of HK$50,000- 60,000 and prefer relatively more affordable areas like Western Mid-Levels; Mainland Chinese professionals’ demand for rental grows through various talent schemes.

These tenants, including young couples, typically budget HK$30,000-40,000 per month and prefer newer residential developments in Kowloon West districts such as Nam Cheong, Tai Kok Tsui, and Olympic, attracted by modern amenities and clubhouse facilities.

Beyond new demand driven by the arrival of expatriates, the market is seeing additional activity from existing tenants relocating due to property sales by their original landlords. These tenants generally prefer to remain in the same district with similar-sized units, though often seek comparable or slightly lower rental prices, leading some to consider sub-district alternatives.

On the supply side, developers are adjusting strategies by retaining completed projects for rental rather than immediate sale, anticipating more favourable market conditions. Notable examples include One Central Place, a Sino Group and Urban Renewal Authority joint development that recently launched 29 rental units. As for prime residential properties, Hang Lung’s The Summit also exemplifies this trend, with the landlord investing HK$700 million in renovations to maintain the property as a rental asset.

However, given the supply at key luxury residences such as Borrett Mansions, Queen’s Garden and Garden Terrace are still relatively limited, rental values of prime properties stand strong. Looking ahead to Q3 2025, the market expects a peak leasing season as families typically view properties in June and finalize leases by August or September ahead of the new school year.