Opinion | Landlords biting their fingernails as luxury flats stay vacant

If you could ask a crystal ball any question, what would it be?

Landlords of Hong Kong luxury residential properties would probably want to know when they can find tenants to fill their vacant homes.

The down cycle of the luxury residential market began when the Hong Kong financial sector was hit by the global financial crisis in 2009.

There was little hiring, and companies started cutting housing budgets for expatriates and often hiring them on local terms.

As a result, demand for large flats of 2,000 square feet or more, with asking rents of HK$80,000 and above, previously targeted at top management, has been declining.

Apartments in the prime districts of The Peak and Southside have been the most affected, with average rents dropping 10 per cent and 7.1 per cent, respectively, last year, according to property consultant Savills.

With smaller housing budgets, tenants are no longer insisting on living on The Peak. Senior expatriate managemers now express a preference for the Southside or even Sai Kung.