Changing dynamics unravel in Hong Kong’s mid-high end residential leasing market 

Locals are increasingly becoming key demand drivers.

Despite challenging macroeconomic conditions, demand from high-net-worth individuals from Mainland China persisted. On the other hand, Savills notes that Hong Kong’s luxury residential segment ranging from HK$100,000 to HK$200,000 per month, is currently experiencing low demand. 

The number of expatriates with family members has declined after Covid and the residential leasing budget for these tenants may slightly drop under the difficult macro-economic circumstance.

Here’s more from Savills:

Family tenants are predominantly from Mainland China, constitute a significant portion of the tenant demographic. On the corporate side, clients hail primarily from Asia and Europe. Notably, there exists a discernible budget variance among expatriates from different investment banks, with monthly rents spanning from HK$40,000 to HK$80,000. 

Apartments situated in Kowloon Station maintain their appeal, particularly among Mainland corporate clients, while corporate clients may prefer Mid-levels and Central. This diversity in tenant profiles and budget considerations adds intricacy to the dynamics of the leasing market in Hong Kong.

The mid-high end residential leasing market in Hong Kong is witnessing a shift in dynamics as it receives inquiries not only from expatriates and mainland tenants but also from a growing number of local users. 

Over the past two years, with property prices on a decline, some experts such as doctors and lawyers, are opting to sell their properties and choosing to rent rather than buy. While locals traditionally haven't been the main players in leasing residential properties in Hong Kong, this emerging trend has the potential to significantly increase leasing demand. Simultaneously, it may exert additional pressure on property prices as locals increasingly explore rental options over property ownership.