Posted by
DaHKGKid
17 yrs ago
You can put the letter together but honestly, given the description of your landlord, even it they agree to a lower your rent it will not be enough by current downtrends.
I had the same issue with my last landlord in Sept 08. We were paying 45K, they wanted 57K, we knew the market was ready to tumble so found a landlord who would take 45K. When they wouldnt go down any more (which I asked for 40K) I negotiated a shorter term lease (7+2 instead of 12+2) both 2 year terms.
My renegotiation is in April this year in which I will ask for $35K.
In current market conditions, at this moment in time, I would be looking for 20% off peak rentals from say June 08. Take 65K and work a range from $48-$52K. Leave no money on the table and again the downturn in HK will continue throughout 2009 into 2010 so you can always go for a short lease as I did above.
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My wife is a real estate agent. She tells me that some of the major landlords are the most negotiable as they want to keep up their occupancy levels. Whoever your big landlord is they must be bonkers...! The Government quoted earlier are seeing an exodus from some of their blocks I have been told as they are raising rents in a falling market.DaHKGKid is right in saying that a 20 percent drop should be reasonable.Good luck....!
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Yes, if you like the area then the extra $5K/m makes sense. I just moved down the street but same development for the same reason. Good Luck!
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mdap
17 yrs ago
MOVE ! Everyone is reducing rents and there are plenty of HK Landlords who are keen to get good tenants locked in .... I have three places I rent out and (well except for one as my mother lives in that) I have reduced the rents by 20 and 25% as I prefer to keep good tenants ... Any landlord expecting a rent increase - well just tell them where to shove their apartment .... it is YOUR turn to have the upper hand - happens rarely in HK - so enjoy ...
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JJALD
17 yrs ago
Definitely move. We have just moved from PFL to Mid-levels and have 50% more space for 33% less money!
Anyone asking for an increase at the moment must be mad!
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We live in the same building since June. It's about the cheapest per square foot in the area. Most places we looked at at the time were well over $80k and closer to $100k. Just to get an idea, where on HK island can I get a 4-bedroom 2250 sqm apartment for $70k or less? I am following the prices a little bit since we would technically be able to move over the summer (August = 12 + 2) but will I find a 4-bedroom place with well over 2000 sqf on the Island? Well, maybe the next months will tell. I agree though, no reason to go up. There're even a few vacancies here, which is rare.
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Overall rents and sale prices are going down, but that does not mean that this trend applies to every single property in Hong Kong. Even during SARS there were certain properties whose prices did not fall at all, because of their popularity. I think your best option is to move if you are not too attached to your current home.
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dadda, i wonder if we live in the same place - similar situation - we are in a bit building on Sth side owned by corporate landlord - our rent is up in Feb as well and we are in the process of re-negotiation as well. We are using an agent (corporate lease) and she thinks the rent will go DOWN on our flat not up.... should hear this week - I will keep you posted. PM me if you want to check which building we are talking about and our rent levels etc....
Also some of the buildings have appts for rent on the market at the moment - so you can check what similar size appartment is currently going for
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ah yes - just read all your posts - we are both talking Manhattan. so yes - we think ours will go down! go figure - same landlord
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dadda...Smaller world then you think. If this landlord opens the door to reduction then they must open it up for everyone as info travels fast. Further to my post above, if none of you are willing to move and IF the rentals are in fact FAIR compared to others in the same area minus the 20% drop from peak then a no rent increase may be your last word at the negotiation table.
Sooner of later however the landlord will have to drop rents if they are looking at lower occupancy rates so ask for a shortened lease period of 6+2, sighting financial conditions. You should all work together to do the same.
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Or better yet, rent from 'mdap', as he sounds like a dream landlord in HK. mdap, good on you for seeing the bigger picture and knowing its a two way street.
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ha! it is even funnier - we are in the same block (well F) as well!! must have seen you in the lift! will let you know which way our rent goes! should know this week.
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also - good point DaHKKid - Manhattan used to have a waiting list always - you had to wait months at least to get an appartment there - now there are a few avail - so the landlord has to keep his current tenants sweet, unless they want some more empy flats, me thinks... no increase as a minimum..
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I agree with DaHKG kid. Do not agree to a rent INCREASE in the current market! If you are unlucky your landlord will let you go, but then you find another property.
Speak to Sallmanns who are trying to let large numbers of flats.
We recently looked and were called back by agents with landlords happy to consider our budget, when flats originally advertised at 20K more.
We found somewhere and negotiated it down.
Do not go by the advertised rental. Start looking above your budget.
Your rental should be reducing, not increasing.
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Ps Manhattan and Pacific view have empty flats (the latter loads)
Sallmann told us the market will continue to drop as on Southside there are new buildings (with lots of flats eg the 'toilet bowl' near Repulse Bay) which will go on the market for lease soon.
Thee will always be tenants who agree to rent rises (our neighbours pay nearly 50% more than us, for the same house)
The 'hype' about everyone clambering for flats (waiting lists etc) that many expats still believe, is over. Agree wioth the other posters.
If you agree to a rent RISE now, you will be paying MORE than others coming into the property in the next few months.
House opposite ours (a large Southside house) has been vacant since July last year.
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Remember being fair in case as both landlord/tenant is relative to current environment. If you feel each of your units were fairly rented at $61K in 07 or 08 then in 09 they should be fairly less. Put is this way, if others are paying 10% more than you and expect a 20% drop, should you at least expect 10% reduction yourself. No more that $55K/m on $61K now would I accept given fair original price and prime location for you and your family. Remember, neg price then term. 6+2, 8+2 then avg down again in 6-8 months to $45K when the full bottom is out.
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Hello Everyone,
there is much talk about how much...but how much for how big??...is everybody here talking about Southside only?
we will be moving to hongkong next month and wants to know how much a 3 bedroom 2 bathroom place would cost now and if we can negotiate it down.
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everyone is talking about southside mothercricket due to the fact that the person who posted this tread lives in southside. If you want anything else, i think it is much easier to start your own thread perhaps?
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Ed
17 yrs ago
The Number One Property Site in Hong Kong http://hongkong.asiaxpat.com/property/
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ceeh
17 yrs ago
Swire properties has always been pretty stubborn on rent negotiation has come down 12% on the Pacific Place apartments for rent renewal. Almost unheard of!
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didy
17 yrs ago
ceeh, is that 12% lower than the existing rent? or 12% lower than the original renewal rent? cheers
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ceeh
17 yrs ago
didy, our curent lease was up for renewal and they reduced the rent we had been paying for the last 12 months by 12% for the renewal which is for another 12 months.
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Except for that a tenancy agreement is for two years and your mortgage is a commitment for 20+ years.
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