Hong Kong property rents drop for the first time after continuous climb over the past year

Posted: Apr 22 2015Last Updated: Apr 22 2015
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22 April 2015 - Many home seekers will be glad to learn that Hong Kong home rentals recorded a drop in March for the very first time in over a year. This trend is expected to persist in the second half of the year, with a larger number of new developments expected to be launched in those months.

According to Centadata, secondary home rentals at 100 major estates logged a 0.6% fall, from $33 per sq.ft. to $32.8 per sq.ft. Irrespective of the tiny scale of this drop, some analysts see this as a prelude to a further decrease in property rentals, and even property prices.

"The property market this year may see surplus supply for the first time in three years," said Alfred Lau, an analyst at Bocom International. He predicts that property rentals will either remain constant or decline by 5% this year.

However, Credit Suisse analyst Joyce Kwok believed that home rents are greatly affected by seasonal factors and conclusions cannot be drawn until the summer peak season hits.

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