Cheap rents beckon Hong Kong residents as serviced apartment operators slash rates, throw in freebies to boost occupancy

Hong Kong’s embattled serviced apartment operators are slashing rents and offering sweeteners to boost occupancy rates that have been hit hard by the pandemic

Serviced apartment rents fell for seven straight quarters, for a total of 14.5 per cent up to the end of the fourth quarter of 2020, according to Savills

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Hong Kong’s serviced apartment operators have been hit hard by the pandemic. Photo: AFP

Published: 8:30am, 26 Jan 2021Updated: 12:08pm, 26 Jan 2021

Residents and expatriates in the world’s most expensive city now have a chance to make some big savings on rents.

Hong Kong’s embattled serviced apartment operators are slashing rents, in some cases, by as much as half, and offering sweeteners to boost occupancy rates that have been hit hard by travel restrictions and a sharp decline in relocations because of the coronavirus pandemic.

“Whilst hotels can entice locals with attractive staycation packages, serviced apartments rely heavily on business travellers and corporate relocations – with those new to Hong Kong utilising them whilst searching for more permanent homes,” said Will Robertson, executive director at Nest Property.

“The serviced apartment industry, like many, has struggled as a result. With fewer companies relocating employees internationally, occupancy is likely to remain low and once-fixed rental rates are now highly negotiable.”

The serviced apartment segment was already reeling from the anti-government protests, with occupancy rates declining from around 89 per cent in 2018 to 71 per cent in 2019, according to Nest Property. The average in 2020 was 62.5 per cent, according to Savills, with the level easing from 68.4 per cent in January to 59 per cent in December.

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