Hong Kong’s red-hot rental market forces students to flat-hunt as early as April

Competition for student housing is intensifying in Hong Kong even as more accommodation comes onto the market, with mainland Chinese students beginning their search for a home months earlier than in previous years and landlords leaving flats vacant to capture the annual influx.

Kenny Zhang, an agent at Youhouse Property who specialises in student rentals, said inquiries from mainland students began arriving from as early as late April this year, compared with late July or August three years ago.

“The earlier leasing cycle has prompted some landlords to leave flats vacant for several months so they can lease them to students before the September semester, attracted by upfront annual rent payments and predictable tenancy periods,” Zhang said.

The demand has helped keep the rental market firm. Centaline Property’s rental index rose 1.01 per cent in June from May, extending gains for a seventh consecutive month and marking a fifth straight record high. The agency expects rents to continue rising in the third quarter as students and imported workers compete for limited housing.

Demand continues to centre on neighbourhoods close to universities. Students attending the University of Hong Kong (HKU) typically choose Kennedy Town, Sai Ying Pun and the HKU station area, while those studying at Hong Kong Polytechnic University favour Hung Hom and Whampoa. Many, particularly women, are also willing to pay more for homes in larger estates in Tai Wai and Sha Tin with stronger security measures.