2025-02-24 28HSE 编辑部
A recent survey on Hongkongers’ homebuying plans by Sing Tao reveals that over 30% of non-homeowners plan to enter the property market. Experts attribute this to rising rents and the anticipation of interest rate cuts by the end of the year, which stimulates demand and prompts more renters to buy. Agents report that Kai Tak, a favorite among professionals, has seen a heating rental market, with rents in the area quickly returning to pre-pandemic levels. In May, rents for two-bedroom units surged by HK$5,000, an increase of 30%.
With the government's active introduction of various talent admission schemes, around 110,000 people have moved to Hong Kong under these programs by the end of March, significantly boosting rental demand. According to the Rating and Valuation Department, the private residential rental index rose to 186.9 points in April, up 0.92% month-on-month and 4.59% year-on-year. In the first four months of this year, the index increased by 0.48%.
Entering the peak rental season of summer, residential leasing activities have become more vibrant across various districts, especially in Kai Tak, where new housing projects are concentrated. With major bank headquarters relocating to the nearby Kwun Tong business district in recent years, Kai Tak has gained additional advantages. Last year, the area recorded 1,700 rental transactions, averaging 4.7 transactions per day.
This year, rental prices in Kai Tak have returned to pre-pandemic levels, with some units seeing rent increases of up to 30%. Real estate agents describe the rental market in the area as exceptionally active. According to Andrew Liu, Assistant District Manager at Ricacorp Properties, two-bedroom units in Kai Tak that were listed for about HK$17,000 to HK$18,000 during the pandemic are now fetching HK$22,000 to HK$23,000, reflecting a 30% increase.
Liu noted that over half of the buyers and tenants in both the new Kai Tak area and the runway area are new Hong Kong residents or professionals. Most of the tenants he deals with are mainland families and students. Previously, these clients preferred Hong Kong Island, but since the opening of the Tuen Ma Line, which facilitates easier travel to the mainland via high-speed rail, they have started renting in Kai Tak.
Additionally, mainland students have been arriving in Hong Kong since May to find rental units, competing for one- to two-bedroom flats. By June, these units were essentially "sold out," leading to tight supply and naturally driving up rents.
Liu further mentioned that one- and two-bedroom rental units are highly sought after, with only 10 such units available in the entire Kai Tak area, and only five of these can be scheduled for viewings, while the rest are occupied until the end of their leases. Rental prices range from HK$17,000 to HK$21,000 for one-bedroom units and HK$23,000 to HK$28,000 for two-bedroom units.
So far this month, Kai Tak has recorded at least 76 rental transactions, with the latest being a one-bedroom unit on the lower floor of Block 2B in The Visionary, measuring 306 square feet, rented out for HK$16,000, equating to HK$52 per square foot. The owner purchased the unit in October 2017 for approximately HK$6.47 million, achieving a rental yield of 3%.
Rising rents are indirectly encouraging renters to become buyers. Eddie Lam-Yat Ming, a senior lecturer at the Metropolitan University, noted that rents for some units have increased by 15% to 20% compared to three to four years ago. He cited examples of mainland students renting small units in Sha Tin, where parents often prepay a year's rent in one lump sum, driving up rents in Hong Kong. As renters see landlords raising rents, they are more inclined to consider homeownership.
有用
