Luxury residential leasing demand is expected to decline in the final quarter of this year, while rentals could fall 5 per cent, according to FPDSavills senior research director Simon Smith. Mr Smith said last month's luxury leasing market was quiet after a short-lived rebound in September. Almost all ranks of leasing activities contracted or came to a halt - except lower budgets between HK$20,000 and HK$40,000 per month, where a steady flow of tenants was noted. Many of these leases were relocations from higher budget areas, Mr Smith said, adding he expected an increase in leasing activities in less prominent districts at the expense of rising vacancies in prestige developments on the Peak and Southside. More tenants would terminate their leases towards the end of the year but no significant group of newcomers had emerged as multinationals continued to cut housing allowances. Southside luxury residential rentals would come under pressure over the next two years as there was plenty of new supply, he said. A new apartment tower with 184 units ranging from 2,600 to 3,000 square feet at 129 Repulse Bay Road is due to be completed next June.