Some Hong Kong developers are now turning to housing rental and the leasing market to weather a prolonged downturn in its property market and to serve surging rental demand from mainland Chinese professionals and students.
The shift in developers' strategy is a rare move in a city that boasts some of the world's highest property prices and underscores the changing demographics in Hong Kong. The former British colony had seen an exodus of residents including expatriates after anti-government protests in 2019 and then the pandemic, with the population gap now largely filled by an influx of mainland Chinese following a range of talent admission schemes launched in 2022.
Rents of private homes in Hong Kong in July rose to their highest level in nearly five years, while home prices dropped 22% during the same period, latest data showed. With locals also opting to rent rather than buy due to an uncertain economic outlook, many realtors expect the diverging trend of home prices and rents to continue in the near term.
Earlier this month, Henderson Land, a major Hong Kong developer, said it was putting part of its "Baker Circle Dover" project in the Kowloon peninsula up for rent instead of sale. It did not disclose how many units are available for rents but said more than 20 units were leased out within one week, with monthly rents ranging from around HK$14,000 ($1,795) for a studio to HK$19,000 for a one-bedroom flat.
