Driven by sustained rent increases in residential areas, the share of monthly rentals exceeding HK$20,000 has risen. According to Midland Realty Promote’s Residential Area Rental Case Calculator, such cases accounted for approximately 45.2% of all monthly rentals in the first eight months of this year — up 2.8 percentage points from about 42.4% a year earlier (see chart). Rising rents are likely pushing more tenancy agreements above the HK$20,000 threshold.
Monthly rentals of HK$20,000 or less still account for over half of all cases
Monthly rentals between HK$15,000 and HK$20,000 made up around 30.5% of cases in the first eight months of this year — up just 0.1 percentage point from 30.4% a year earlier, reflecting stable performance. In contrast, the share of monthly rentals at HK$15,000 or below fell to about 24.3% this year from 27.2% a year ago — a decline of 2.9 percentage points. Nonetheless, monthly rentals of HK$20,000 or less collectively accounted for approximately 54.8%, still representing more than half of all rental transactions (see chart).
Individual estate data show notable annual rent growth in some residential units. Using Midland Realty Promote’s Rental Case Calculator — comparing identical estates, blocks and unit types across different floors — a high-floor 4-room unit in Block K, Phase 4 of Sunshine City leased for HK$22,800 per month in August this year, up 11.2% from HK$20,500 for a comparable high-floor unit in June last year. A low-floor D-unit in Block 8, The Cullinan West III leased for HK$18,300 in July this year, up 10.9% from HK$16,500 for a similar low-floor unit in July last year. A mid-floor F-unit in Block 8, Solaria leased for HK$19,800 in July this year, up about 10% from HK$18,000 for a comparable mid-floor unit roughly one year earlier. Additionally, a low-floor D-unit in Block 8, Phase 1 of Ocean Pride leased for HK$26,000 in July this year, up 9.2% from HK$23,800 for a similar low-floor unit a year earlier (see table).
As September arrives — traditionally the tail end of the peak leasing season — demand for residential rentals is expected to remain supported. In addition to students arriving for studies, continued inflows of overseas talent are generating new demand for local rentals. Average residential net rent per square foot in September is projected to surpass its previous record high, potentially further lifting the share of monthly rentals exceeding HK$20,000.
Further reading:
Buying guide
costs beyond the initial deposit | second-hand property purchase process
assignment deed VS gift deed | inheritance of estate properties
management fees: what you need to know
Mortgage information
high-loan-to-value mortgages | leung chun-yingplan 2.0 | mortgage specialists
Latest updates
more midland realty agent transaction cases | property market news | midland realty price index | railway-property market trends
Selling tips
selling cost checklist | selling process
中文版 (【租金升】今年首8个月月租逾2万元租务占比升至4成半！)