The slide in Hong Kong’s rents is getting steeper as the coronavirus crisis and protests lead to job losses and an exodus of expats and students fleeing the city, reported the South China Morning Post.
Rents in high-end districts have been hit hardest, tumbling by up to a quarter from their peaks, according to agents, while data showed the average rate across the whole city slumped to the lowest in almost three years in February.
“The virus is reducing demand for properties as people either leave Hong Kong or have less job security,” said Victoria Allan, founder and managing director of real estate agency Habitat Property. She said rents shrunk 15 to 20% in the sought-after Mid-Levels and the southern district between June last year and March.
Downward pressure is more obvious on rents above HK$100,000 ($12,894) per month and also larger blocks where there is existing vacancy, said Allan. Rents at the lower end of the market, in areas like Sheung Wan, Sai Yung Pun and SoHo, are also softening as many young professionals are losing their jobs.