Activity up in all budget sectors
The luxury residential leasing market remained buoyant last month, with activity levels across all budgets rising, according to FPDSavills.
The most active band was mid-range budgets looking for flats in the HK$30,000 to HK$60,000 per month segment, it said.
The core tenant profile included lower to mid-level staff of large corporations and an increasing number of overseas companies were in evidence.
FPDSavills said tenants from the financial and services sector were the most active, as usual, and the presence of tenants from the trading and construction industries reflected the breadth of the economic upturn.
Rents at the top end continued to rise due to lack of supply. The dominance of mid-range budgets had made Mid-Levels the most popular area during the past few months.
With the rising take-up of good-quality buildings in the area and the inflexibility of some landlords, rents might come under some upward pressure in the near term, it said.
The company's latest figures showed that rents for luxury properties on Hong Kong Island increased by an average of 2.9 per cent in the first quarter of the year.
Rents in Mid-Levels outperformed others by rising 5.9 per cent quarter on quarter. Rents in Pokfulam fell 2.5 per cent, while luxury rents on The Peak edged up 0.9 per cent, those in Happy Valley/Jardine's Lookout 2.7 per cent and Southside/Shouson Hill 4.2 per cent.
FPDSavills expected rents to rise steadily by 3 per cent in the second quarter and 4 per cent in the third.