Luxury residential rents face further decline on weak demand
Luxury residential rents could drop a further 18 per cent by the end of the second quarter before levelling off, First Pacific Davies (FPD) said.
The huge supply of flats combined with a downturn in the economy would continue to put pressure on rents, it said.
FPD figures showed luxury rents were in for a 10 per cent downward correction this quarter and a further 8 per cent decline in the second quarter.
'Continued job losses among senior staff are expected to further weaken demand for luxury units and put downward pressure on rents,' FPD research director Simon Smith said.
Faced with a growing supply situation, tenants were exercising their break clauses and were seeking cheaper accommodation, he said.
While rents have come down across the board, those in some buildings were holding, FPD said.