Luxury apartment rents showing stronger rental demand in Hong Kong

Even as they soften in Asia.

It has been noted that luxury apartment rents are softening in most Asian cities.

According to a research note from Savills, however, this trend excludes Hong Kong and Guangzhou, which are showing stronger rental demand.

Rental markets in Singapore is still trending down and experiencing an apparent correction.

Here's mroe from Savills:

With a less positive economic outlook and lower interest rates in the region, most Asian currencies have depreciated against the US Dollar by between 1.3% and 8.3% over the first half of 2015. However, China and Taiwan have seen a slight currency appreciation against the Greenback, recording a 0.1% and 2% rise over the same period respectively.

In terms of local currency, office rental markets recorded movements from -8.2% to 2.2% across the cities we monitor, suggesting a sluggish office absorption rate in the first half of the year. Because of strong demand and low vacancy in Hong Kong and Tokyo, prime buildings in these markets saw slightly higher rental growth.

Rents in prime retail malls maintained stable growth from 0% to 3% except in Tokyo and Kuala Lumpur where rents rose by 9.5% and 9.9% respectively.

In the hotel sector, Manila has recorded high growth in room rates, followed by Ho Chi Minh City, Shanghai, and Guangzhou.