Hong Kong still the most expensive Asian city for expat executives to rent
Survey finds average rent for 3-bedroom, mid-range flat is an eye-watering US$10,461 as developers’ focus on micro flats hurts supply
Hong Kong remains the most expensive city in Asia for high-level expatriates to rent housing, according to a survey released on Tuesday.
The city topped a poll by ECA International based on the monthly cost of a three-bedroomed, mid-range flat in an area commonly inhabited by executive-level expats for a fifth straight year. The gap with other Asian cities widened.
The average rent for such an apartment in Hong Kong is US$10,461 (HK$81,848), beating Tokyo in second place by more than US$2,000, ECA’s 2017 Accommodation Survey found.
The figure, up 4 per cent from a year earlier, is mainly driven by high demand and a lack of mid-range supply as builders focus their efforts on so-called micro flats.
“Hong Kong saw the first rise in rents for such flats last year for five years. Key driving forces included a slight increase in demand, continued lack of mid-range rental units under the recent continued supply of tiny flats and lack of new supply in areas near international schools,” said Lee Quane, regional director of Asia at ECA International.
Quane said he did not anticipate a fall in demand for mid-range accommodation because multinational companies are still sending just as many staff to Hong Kong.