Hong Kong rents hit 5½-year high as demand surges post-holiday season
Rents in Hong Kong hit a five-and-a-half-year high in February amid an increase in demand after a lull during the holiday season, according to Centaline Property Agency, which expects rents to continue rising as economic uncertainty discourages more people from buying homes.
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Centaline's widely followed Centa-City Rental Index, published on Monday, rose 0.46 per cent month on month to 123.97, bringing the overall increase in the first two months of the year to 0.65 per cent.
It was the highest level since 125.70 in September 2019 and it also crossed last year's high of 123.94 in August, the data showed.
The current levels 'indicate that the traditional rental market slowdown from Christmas to Lunar New Year has ended, and market sentiment has improved', said Yeung Ming-yee, a senior associate director at Centaline. 'Strong housing demand, combined with a shortage of rental listings, could gradually push rents higher.'
Yeung said that the third quarter, which coincides with the start of the new college academic year, was typically the peak season for rentals. The index was likely to challenge the all-time high of 128.01 recorded in August 2018, he added.
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Rents in Kowloon jumped 1.84 per cent month on month in February, the most in eight months and hit the highest level in nearly five and a half years. In New Territories West, rents rose 0.43 per cent to match the highest level seen in September 2018.
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