Kowloon flat fetches $160,000 rent

Business | Samantha Wong 14 Sep 2018

A four-bedroom apartment at the Imperial Cullinan in Tai Kok Tsui has been rented out for HK$111 per square foot a month, the highest price in Kowloon, according to market sources.

The 1,443-sq-ft flat, which the owner acquired for HK$103 million in 2015, is fetching monthly rent of HK$160,000.

The second most expensive rented flat in the same district is at The Arch, at HK$93 per sq ft a month.

Meanwhile, property consultancy Cushman & Wakefield said home prices may come under pressure if a 100 basis points of mortgage rate hike is assumed by the end of next year. The increase in monthly mortgage payments will push affordability ratios up, resulting in more buyers failing the stress test, which in turn could reduce transaction volumes and cool investment sentiment, the consultancy said.

It said the weakness in the yuan could dampen mainland Chinese buying power for Hong Kong homes, while the struggles in the stock market could also impact the buying sentiment.

"More potential home buyers will adopt a wait-and-see approach amid rising uncertainties and transaction volumes are expected to fall in the remainder of 2018," said Reed Hatcher, Cushman's director and head of research in Hong Kong.

Price growth will remain at about 15 percent for mass residential homes for the entire 2018, but a correction of up to 10 percent may occur in 2019 should the impact of the uncertainties worsen, he added.

Local property transactions fell from 9,520 deals in June to 6,966 deals in August, down 26.8 percent.

"Sales volume will drop further in September and should stay at 5,500 sales and purchases on average per month for quarter four," the consultancy noted.

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