Hong Kong rental prices boosted to prepandemic levels by mainland Chinese immigration
Hong Kong rental prices have finally recovered to pre-pandemic levels as mainland Chinese students and professionals flock to the city that residential rents climbed for three straight months ending May to reach the highest level since 2019 and the most notable rent increases have occurred in areas traditionally favored by mainland tenants، while this resurgence in the rental market is providing a significant boost to the overall real estate sector.
Hong Kong rental prices have finally recovered to pre-pandemic levels
Hong Kong rental prices have finally recovered to pre-pandemic levels as mainland Chinese students and professionals flock to the city and residential rents in Hong Kong have been climbing for three consecutive months as of the end of May.
Hong Kong residential rents climbed for three straight months ending May to reach the highest level since the year before covid19 according to Midland Realty and rentals are emerging as a bright spot as much of the real estate market، including offices and residential sales.
Job seekers from mainland China is driving Hong Kong rental prices higher
An influx of job seekers from mainland China is driving Hong Kong rental prices higher، bringing them back to their pre-pandemic levels in 2019 and the surge in mainland talent moving to Hong Kong is closely linked to the Hong Kong government's "Top Talent Pass Scheme" launched at the end of 2022.
Data from Greater Bay Area real estate agency Spacious indicates that rents in West Kowloon rose by 12% in May compared to the previous year، significantly higher than the 4.2% average increase across Hong Kong.
West Kowloon Hong Kong، known for its high-end residences and proximity to a high-speed rail station connecting to the mainland، has unique appeal to newcomers from mainland China.
approximately 108 thousand individuals have arrived Hong Kong since last year
According to Hong Kong government data disclosed in March، over 72 thousand applications had been received by the end of February، with nearly 59،000 approved and around 44 thousand individuals already in Hong Kong، including those approved through other talent admission schemes، approximately 108 thousand individuals have arrived since last year.
Official data also shows that the median monthly income of those employed under the Top Talent Pass Scheme is around HKD 50،000، significantly higher than Hong Kong overall median income of HKD 20،000 and about 25% of these new arrivals earn HKD 100 thousand or more per month، with roughly 10% earning HKD 200 thousand or more monthly.
New mainland China talents generally possesses substantial economic strength
This indicates that new mainland talent generally possesses substantial economic strength and higher rental budgets as said by James Fisher، COO of Spacious، who told the media that Hong Kong economic recovery is also invigorating the rental market.
He believes that the revival of industries such as aviation، hospitality، food and beverage، and retail is creating more job opportunities in the city of Hong Kong.
However، Hong Kong property sales market remains weak as high interest rates are deterring many potential buyers، leading to a 28% month-on-month decline in transaction volume in Mayso this situation indirectly boosts rental demand as more people choose to rent rather than buy property temporarily.
