Home sales curbs lift serviced-flat manager

Curbs designed to try to cool Hong Kong's overheated housing market have given a boost to management service providers, according to Onyx Hospitality Group.

More owners now prefer to hold their properties for long-term leasing rather than sell them, and are turning to service providers to help them maintain their portfolios, the group says.

Peter Henley, chief executive of Onyx, which is based in Thailand, also expects the curbs to lead to more opportunities for the group's luxury serviced apartment brand, Shama, since branding can enhance the rental incomes of properties.

"People are less inclined to buy commercial properties now, and existing owners intend to hold their premises for the long term. Therefore, we come in and help them to look after and manage their premises," Henley said.

The group currently operates five luxury serviced apartment projects under the Shama brand in Hong Kong, and six on the mainland. New properties are scheduled to open in Hangzhou, Chengdu, and Beijing.

Demand for serviced apartments had slowed as the number of expatriates working in the city, the size of their families, and the length of their stays fell, Henley said. "That has been a challenge to our business, but our apartments still run at an occupancy rate of as high as 80 and 90 per cent," he said.

Henley said he remained optimistic about the market outlook, since there would always be a demand from foreign workers for serviced apartments.