Expatriates with a monthly accommodation budget of HK$70,000 to HK$100,000 - a common package for senior executives - would have less choice in their favourite area in Island South as luxury residential rents continue to rise. Landscope Surveyors managing director Koh Keng-shing said most flats of more than 3,000 square feet in Island South would be charging more than HK$100,000 a month now. 'This group of executives will have to lower their expectations by looking for flats in West and East Mid-Levels,' he said. Landscope's website lists a 3,330 square foot unit in Tregunter Towers at Mid-Levels offering to lease at HK$100,000 a month. Owing to limited supply of luxury residential units, Mr Koh expects rents to increase more than 20 per cent this year. He said the period from May to July was the traditional high season for leasing, thus this would push up rents further. An international survey last week ranked Hong Kong as having the world's highest rents for expatriates, with average cost of US$8,592 a month to rent an unfurnished three-bedroom flat in areas such as Repulse Bay, the Peak and Mid-Levels. Mr Koh said accommodation and staff cost only accounted for a tiny portion of multinational corporations' operating cost. 'With a growing number of international corporations setting up offices in Hong Kong and the tight supply in top-end residential sector, rents will continue to move up. We have seen one apartment attracting two to three bidders,' he said. Mavis Kang, general manager of Signature Homes, the luxury residential leasing arm of Sun Hung Kai Properties, said rents for its luxury residential portfolio rose 5 to 8 per cent in the first quarter of the year, compared with the previous quarter. Signature Homes provides more than 600 homes in 14 prestigious locations in Hong Kong. These include Dynasty Court in Mid-Levels, 127 Repulse Bay Road and Le Palais in Island South. 'Occupancy rates at our portfolio reached 97 per cent, reflecting strong demand for luxury residential homes,' Ms Kang said. Lily Choi, senior marketing manager at Kerry Real Estate Agency, said most of their tenants were expatriates who worked in the financial sector. 'Our tenants come from the United States and Europe,' she said. Its super-deluxe portfolio includes Aigburth, Branksome Crest, Tavistock and Branksome Grande. She said rents ranged from HK$40 to almost HK$60 per square foot, while units of 6,000 square feet would exceed HK$60 per square foot.