With a trickle of serviced apartments due to come to the market this year, demand is expected to remain strong and rents bound to increase. A report by estate agents Richard Ellis shows average occupancy rates for such luxury accommodation of at least 80 per cent in the past year. Prestigious buildings such as the Atrium and the Parkside in Admiralty or the Parkview suites in Tai Tam were fully occupied, the report said. Jan McNally, head of residential services at Richard Ellis, said: 'Serviced apartments are in very short supply. It is not just the luxury sector where the demand is greatest but now it's across all sectors.' The supply of serviced apartments will fall by 330 units with the conversion of the Victoria Apartments in Sheung Wan into an office complex later this year. The report said the supply of serviced apartments was so acute many multinational companies were reserving months in advance of need. A huge influx of expatriates had produced long waiting lists for the more popular apartment blocks and caused residential rents to soar in the past decade, the report said. Property owners and developers are responding to the demand by converting their premises into serviced apartments. Wharf (Holdings) announced last year the inclusion of serviced apartments in its Gateway II complex on the Tsim Sha Tsui waterfront. Sun Hung Kai Properties and Henderson Land Development are incorporating flats in a 1.47 million sq ft development in Hunghom Bay.