Hong Kong’s prime residential rents 50 per cent higher than New York as city tops Knight Frank global survey

For US$10,000 tenants can lease a house measuring less than 1,500 sq ft a month in Hong Kong’s most desirable areas, compared to a 2,250 sq ft unit in New York, according to Knight Frank

Executives of mainland Chinese companies will provide a new source of leasing demand in the luxury residential market as more mainland firms set up in Hong Kong, JLL’s Nelson Wong says

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Hong Kong was the world’s most expensive city for prime residential rents in the first quarter, according to a Knight Frank survey. Photo: Roy Issa

Published: 5:14pm, 30 Apr 2021Updated: 5:40pm, 30 Apr 2021

Hong Kong ranked as the world’s most expensive city for prime residential rents in the first quarter, over 50 per cent higher than New York, with top executives of mainland firms likely to fuel further demand.

Prime rents in Hong Kong’s most expensive areas averaged US$6.7 per square foot, meaning a tenant with a budget of US$10,000 per month would be able to rent less than 1,500 square feet in the first quarter this year, according to a survey released by international property consultants Knight Frank on Friday.

In New York, tenants with the same budget could get a 2,250 sq ft house at US$4.4 per sq ft on average, the survey, which tracked eight global cities, showed. Singapore and London rounded off the top five at US$4 per sq ft and US$3.3 per sq ft, respectively.

“We believe executives of mainland Chinese companies will provide a new source of leasing demand in the luxury residential market as more mainland Chinese firms set up in Hong Kong,” said Nelson Wong, head of research at JLL in Greater China.

A 1,436 sq ft flat in Hong Kong Parkview in Tai Tam, a preferred location among expatriate corporate tenants, is available for a monthly rent of HK$72,000 (US$9,273), according to Landscope Christie’s International Real Estate, which specialises in luxury property.

Hong Kong’s luxury residential rents have dropped about 16 per cent from their peak in the second quarter of 2019, according to JLL. The rental market began to soften after the anti-government protests started in June 2019 and deepened after the coronavirus took hold last year.