THE SERVICED apartment sector has benefited from growing demand in the hotel market as people seeking temporary accommodation find it harder to lease a hotel room.
Property agent Luxury Rental director Michael Fung said hotels in Central had seen occupancy levels of 90 per cent or more in recent months.
'This has pushed some expatriates and prospective tenants to find alternatives in the serviced apartment sector,' he said.
Boosted by the continued arrival of expatriate executives and a steady demand from Hong Kong residents, serviced apartments, especially in the districts of Central and Mid-Levels, had seen increased activity and high occupancy rates, he said.
Many projects had waiting lists.
He said locals in the high-end residential market who needed temporary accommodation while their homes were being renovated were also turning to serviced apartments.
Leasing of serviced apartments in prime locations has picked up nearly 10 per cent since the start of the year, according to Luxury Rental.