Business
Hong Kong Rents Predicted to Break Records as Talent Influx Spurs Demand: An Analysis of the Rising Rental Index
Rental prices in Hong Kong are predicted to reach an all-time high due to an increased demand driven by an inflow of skilled professionals. According to JLL, the rental index is just about 3 percent shy from its highest point in August 2019, a surge that is entirely conceivable.
The index for home rentals in July increased by 1.1% from the previous month, reaching 194.1. This is still 6 points below the all-time high of 200.1 recorded in August 2019, as per the latest official statistics.
Further hikes in rental prices are anticipated, potentially motivating builders to transition their unsold apartments to the rental sector rather than selling them, according to experts. If this happens, rental prices might surpass the previous highs of HK$21.30 (US$2.73) to HK$41.48 per square foot per month, seen five years ago.
"The present market situation is distinctly marked by a scarce supply coupled with strong leasing operations," stated Cathie Chung, who is the head of research at JLL in Hong Kong.
The lease index is expected to keep rising through September and could possibly hit a record high this year, though the extent of the rise might be relatively small, she further stated.
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