Hong Kong expats get rent windfall

Posted by Ed 34 days ago

New Zealander Darryl Parrant was pleased when he renewed the lease on his 800 sq ft flat in Hong Kong’s affluent Mid-Levels area.

He received a 20 per cent discount and will pay HK$40,000 (US$5,128) a month for the next two years, which means saving HK$120,000 a year.

“It is a pretty good deal,” said Parrant, a country business leader at human resources consultancy Mercer. “When I came to Hong Kong two years ago, the rental market was at the peak.”

He said his expatriate friends had also seen their rents fall by thousands of dollars when extending their contracts recently. 
“Demand is weak, as expatriate arrivals have dropped significantly, and there have been high vacancy levels in the high-end segment,” said Nelson Wong, head of research at JLL for Greater China. 
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Ed 16 days ago
Hong Kong residential rents face deeper correction, as fourth coronavirus wave, lay-off clouds gather
- Rents fell 1.2 per cent in September and have declined by more than 10 per cent from a peak in July 2019, Centaline Property Agency says
- Expecting another drop of 3 per cent to 5 per cent in the fourth quarter: Ricacorp
“The market has turned soft for sure. We are seeing fewer people renting flats currently,” said Wong Leung-sing, senior associate director of research at Centaline.
“It very much depends on how the economy goes. If businesses continue to shrink and more people see their incomes get cut, we might see a larger impact on
residential rents
next year.”
If the pandemic takes a turn for the worse with the fourth wave, hopes will fade for an improvement in sentiment and the city’s economy, according to Ricacorp Properties, another agency.
“When people are expecting salary cuts or even job cuts, they have to tighten their belts,” said Derek Chan, head of research at Ricacorp. “We are expecting another drop of 3 per cent to 5 per cent in rents in the fourth quarter.” 
Meanwhile, Carrie Lam was willing to throw nearly 12 billion dollars of good money have bad at the white elephant known as Ocean Park, wage subsidies are set to end next month.    That will further depress the Hong Kong economy. 

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