A number of job losses freed up home stock.
Rental costs for Hong Kong’s luxury apartments slowed from their strong momentum in the first half of the year to a measly 1% in Q2, according to real estate consultant Savills.
The volatile stock markets caused by brewing trade tensions between the US and China has resulted in some job losses that seeped over to the luxury residential market. “As a consequence more landlords found themselves with stock on hand and vacancy rose marginally over the period,” Savills noted.
Rents for luxury apartments in Kowloon and New Territories outpaced the industry average at 1.4% and 1.1% respectively.
On the other hand, the growth of leasing costs for posh apartments on Hong Kong Island slowed to a mere 0.6% in Q2. Southside/Shouson Hill (2.8%) recorded the largest rental growth in the Hong Kong Island luxury apartment market, followed by Mid-Levels (0.3%).
Rental indices for the townhouse market also slowed from 6% in Q1 to a mere 0.4% in Q2 whilst the serviced apartment also witnessed subdued rental growth at 0.7% in Q2.
The muted rental rises seen in Q2 is expected to extend into Q3, according to Simon Smith of Savills Research.
Photo from Wpcpey - Own work, CC BY 4.0
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