Hong Kong luxury apartment rents to rise by up to 5% by year-end
Rents will be subdued in the first half of the year.
A Savills report reveals that Hong Kong Island luxury apartment rents are now 17% below peak levels in 2019 while townhouses are down by around 13%.
While rates of decline slowed in 2022 (-3.6% and -3.4% respectively), the market is on shaky ground and vacancies have persisted at year-end.
Here’s more from Savills:
Looking ahead, the fortunes of the luxury residential leasing market are closely tied to core office demand which is currently weak after a prolonged period of disruption from the social unrest of 2019 and two years of COVID restrictions. Next year should hopefully see some revival in demand from businesses looking to capitalise on Hong Kong’s turnaround as restrictions are loosened and the border with the Mainland reopens.
With this in mind, we expect luxury apartment rents to remain subdued through the first half of 2023 with the possibility of a modest rally in the second half to end the year 0% to 5% up.