Fall in rents won't last long, agents say
Agents say the drop in leasing costs may be short-lived as new entrants to the market help drive up demand for residential tenancies
Upward pressure on Hong Kong home rents has eased as a growing number of flat owners shelve plans to sell and opt to let their apartments instead.
A sharp slowdown in sales following the government's series of measures to cool off the city's fast-rising homes prices has increased the supply of rental accommodation.
Angus Ho, sales manager at Ricacorp Properties' Sha Tin branch, said owners had lowered their asking rents in view of more units shifting from the sales market to the leasing market.
"Some owners have been willing to cut their rents by up to 10 or 15 per cent in order to compete for tenants," he said.
A 452 sq ft unit at Sha Tin Centre was recently leased for HK$12,000 a month, 14 per cent lower than the owner's original asking rent of HK$14,000, he said. The owner had planned to offer the flat for sale at a price of HK$3.9 million but has so far failed to attract buyers.
Similar stories are emerging in other districts.