In Hong Kong, a small flat costs an arm and a leg, but renting one is also becoming increasingly unaffordable as supply tightens.
It is believed that apartments with a monthly rent of less than HK$10,000 (US$1,290) will be all gone on Hong Kong Island by year-end.
For three years in a row, flats being rented out for that amount accounted for less than 1 percent of all available units on the island, according to Wong Leung-sing, associate research director at Centaline Property Agency Ltd.
The proportion of such flats shrank further to 0.2 percent last year, and Wong believes that tenants will find it impossible to find units being offered at that amount within the year.
In fact, you won’t be able to find a flat with a monthly rent lower than HK$20,000 in Taikoo Shing, one of the blue-chip estates on Hong Kong Island, as Apple Daily reports.
The situation in Kowloon and New Territories is slightly better. Still, it’s quite difficult to rent a flat for less than HK$10,000 in many of the blue-chip housing estates in those districts.
In Kowloon Bay, Telford Gardens, Amoy Gardens and Tak Bo Garden are the most popular private housing estates. Of the three, only Tak Bo Garden offers less than 10 apartments with monthly rent below HK$10,000.
A 280 square foot studio-type unit in Tak Bo was just leased for HK$9,600 a month, or about HK$34 per square foot, according to property agency Ricacorp.
In the past year, rents in benchmark real estates across the city recorded significant rises. The average monthly rent at Mei Foo Sun Chuen in Lai Chi Kok, Kowloon, grew nearly 15 percent from the previous year. It was HK$28 per square foot in January last year, but now it’s HK$32.
You’d probably think it’s easier to find an affordable apartment in the New Territories. Well, you may need to think again.
Midland Realty says there’s not a single unit for rent at City One Shatin that is being offered for less than HK$10,000. Right now the cheapest flat available costs HK$10,500 a month.
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