AsiaXPAT (Hong Kong) - Rent Prices for Luxury HK Flats Continue to Fall - Occupancy Rates in HK Serviced Apartments Falling
The never-ending trade war between China and the United States as well as the simmering HK protests and economic downturn in both China and globally continue to negative impact the Hong Kong residential property market.
Hong Kong is mired in a deep recession with protesters continuing to target shopping malls and drive away tourists from the mainland and overseas.
Savills reported that rent reductions were most severe in the New Territories (-3.6%), Kowloon (-3.1%) with HK Island faring better (-1.6%). Rents have dropped across all areas of Hong Kong for two consecutive quarters now.
Sai Kung was the hardest hit with rents falling nearly 5%.
Big-budget mainland China tenants continues to lag as Chinese continue to avoid Hong Kong due to fear of attacks by radical HK protesters.
Serviced apartments are also taking a hit as occupancies have dropped well below the norms of 80% while hotel occupancy rates had plummeted to 60% in September. Hotels are competing with serviced apartments by offering very competitive long-stay rates.