Pressure drop: Hong Kong home rents see biggest month-on-month decline in four years
October's 1.8pc decline is biggest in four years and follows September peak of HK$34 per sq ft
Hong Kong’s home rents fell 1.8 per cent month on month in October, the biggest monthly decline in four years, a private study shows.
Average home rents at 100 housing estates stood at HK$33.40 per square foot a month, against September’s peak of HK$34, according to a study by Centaline Property Agency, one of the city’s major property agents. The October figure was the lowest in four months.
“It is the biggest monthly decline in four years,” said Wong Leung-sing, head of research at Centaline Property Agency, citing an increase in supply as a reason.
The worst performer was City One Sha Tin, where average rents fell of 4.5 per cent month on month to HK$36.20 per square foot. It was followed by Sceneway Garden in Lam Tin, which posted a fall of 3.4 per cent to HK$31.60, and Mei Foo Sun Chuen, which was down 2.8 per cent.
Rents have also been softening in popular housing estates such as Taikoo Shing.
“The average rent once hit more than HK$42 per square foot when the market peaked in the second quarter, now it’s down to the HK$39.60 level,” said Kenneth Chiu, sales manager at Centaline’s Taikoo Shing branch.