HK flat rentals soar amid Covid outbreak

Staff reporter

Secondary property deals hit a five-week high in Hong Kong ahead of the Chinese New Year even as rentals transactions rose amid market uncertainties.

There were 260 rental deals among 15 blue-chip housing estates in the first 25 days of this month, 72 percent more than the 151 purchase deals, suggesting that investors were opting to rent homes amid an uncertain market as sellers refused to cut prices, according to local reports.

The most rental deals came from Tai Koo Shing in Quarry Bay with 53 contracts signed.

Kingswood Villas in Tin Shui Wai followed with 44 deals.

The active rental market was due to high current home prices and concerns over the latest Covid outbreak in the city, according to agents in various districts.

A 657-square-foot flat at Upper Riverbank in Kai Tak was leased at HK$25,000 a month. According to Hong Kong Properties, the home owner bought the flat for HK$17.12 million in March 2021 and the rental return would amount to 1.8 percent a year.

The rentals market was also boosted because some vendors refused to cut prices, with home owners preferring to rent their flats at this stage and sell them later when the prices rise.

Meanwhile, purchases in the secondary market rose to a five-week high with 14 transactions completed during the weekend of January 29-30 in 10 blue-chip housing estates, 16.7 percent more than in the previous weekend. City One Shatin lead with four deals while South Horizons, Kingswood Villas and Whampoa Garden all had two transactions each.

Louis Chan Wing-kit, Asia-Pacific vice-chairman of the residential division at Centaline Property Agency, said current travel restrictions led to increased home visits among buyers and stimulated the property market and added that the market will become more active in spring, after the Chinese New Year.