Hong Kong home rents hit new highs

January 23, 2015 10:48
Apartment rents rose for six straight months at major housing estates in Hong Kong last year, according to a local property brokerage. Photo: HKEJ

Hong Kong residential property rents have charted new records six months in a row, leading to an accumulative 9.9 percent rise in 2014, according to a report.

The average rents at 50 major housing estates have been rising in the secondary market over the last nine months and stood at HK$31.96 per square foot, the Hong Kong Economic Journal reported, citing research from Ricacorp Property Ltd.

With solid demand for housing estates from end-users, the rents for small and medium-sized residential property units could rise five to 10 percent this year, the property agency's chief executive Willy Liu was quoted as saying.

Among the 50 estates surveyed, Kingswood Villas, a private housing estate in Tin Shui Wai in New Territories, recorded the highest increase in rents last year.

The average unit rent of the estate came in at HK$20.3 per square foot as of end-December, up 23 percent over the previous year. 

The overall pace of growth in rentals was, however, somewhat lackluster even as new records were set in prices, according to the report.

Month-on-month growth fell to 0.3 percent in November and December, from a peak of about 1.5 to 2.5 percent expansion last summer, the report said.

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