Luxury home rents in Hong Kong continue to fall

Banks slash spending for expatriates.

Broker Jones Lang LaSalle Inc. said rents for Hong Kong luxury homes fell 1.1% in the first half of 2013, bringing their losses to about 13% since their peak in October 2011. It defines luxury homes as those worth over HK$50,000 ($6,449) a month,

On the other hand, rents for luxury homes in Hong Kong could fall 10% this year, believes Crown Relocations. The firm said the majority of investment bankers on expatriate contracts in Hong Kong now receive HK$50,000 to HK$80,000 a month as housing allowance compared to HK$60,000 to HK$100,000 before the Great Recession of 2008ocations.

Analysts said banks are removing investment banking positions in Asia and reducing back expenses for many employees as corporate finance activities falter due to China’s sputtering economy.

Hong Kong remains the world’s and Asia’s most expensive for expatriate accommodation. Tokyo and Singapore are second and third.