2025-03-12 28Hse Editor
According to the latest data from the Rating and Valuation Department, the private residential rental index rose for the fifth consecutive month in July, reaching 194.1 points. Among the notable transactions, a three-bedroom unit at No. 2 Park Road in Mid-Levels West was recently rented out for HK$38,500 per month, with a rental rate of HK$48.2 per square foot—a significant 37% increase compared to similar units two years ago, which had a rate of HK$35 per square foot.
Centaline’s Dave Yiu noted that the transaction involved a lower-floor Unit D at No. 2 Park Road, with a saleable area of 798 square feet. The unit features a three-bedroom layout with an open view of the surrounding buildings.
The original owner initially listed the unit for HK$42,000 per month. However, after the tenant offered to prepay a year's rent, the owner agreed to a discount of HK$3,500, or approximately 8.3%, ultimately settling at a monthly rent of HK$38,500, equating to HK$48.2 per square foot. The total prepaid rent amounted to a substantial HK$462,000.
Rent for Similar Units Surged by 37% Compared to Two Years Ago
For reference, the most recent rental transaction for a similar lower-floor Unit D, with a comparable saleable area, dates back to September 2022, when it was rented out for HK$28,000 per month at a rate of HK$35 per square foot. This means the current rental rate represents an approximate 37% increase over the past two years.
It is reported that the original owner purchased the unit in 2004 for HK$6.18 million and has held it for 20 years. The rental yield for this transaction is approximately 7.5%.
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