Mass market home rents surge, luxury rents flat
While prices have been rising in the mass market, and are likely to push up Hong Kong's inflation rate, luxury sector rents have remained flat
Surging mass market home rentals so far this year have hit the headlines in Hong Kong, but in the luxury sector rents have barely budged - prompting quips of a "tale of two rental markets".
In the 50 housing estates monitored by estate agency Ricacorp Properties, rents in October were found to have risen by an average of 1.9 per cent month on month to HK$25.17 per square foot - the highest level on record since it began monitoring rents in January 1997.
In September, rents in the 50 estates averaged HK$24.70 per square foot.
"Rents in the mass market have risen for nine consecutive months and are now 15.5 per cent higher than their level at the start of the year," said Patrick Chow Moon-kit, head of research at Ricacorp Properties.
Demand for residential leasing continued to rise despite the increased rents, Chow added, as some home seekers turned to the rental market after the government announced new stamp-duty policies aimed at cooling down the city's home prices.
"Mass home rents will see a continued rise of another 2 to 3 per cent to hit around HK$25.70 per square foot by the end of the year," he said.
In a separate survey, estate agency Midland Realty said it measured a 15.9 per cent rise in rents in the mass home market in the first 10 months of the year to HK$23.30 per square foot. Chief analyst Buggle Lau Ka-fai said the continuing rise in home rents would add pressure to the city's inflation rate and this would be reflected in the forthcoming data.
