Hong Kong records highest rent ever in the second quarter

Hong Kong’s residential market continues to be red hot as rents for private flats hit another new high in the second quarter this year.

Average cost for renting a second-hand flat rose as much as 2.9 per cent on quarter to HK$35.10 per square foot during the April to June period, surpassing the previous high of HK$34.10 per sq ft in the first three months, according to data from Centaline Property Agency. This brings the asking rent for a typical 450 sq ft flat in the city to HK$15,800 per month.

The figure also marks the 15 consecutive month of growth in Asia’s most expensive city to rent a flat.

“As global trade recovered, first-quarter economic growth in Hong Kong was very strong. GDP in the first quarter of 2017 was 4.3 per cent, which is the fastest growth pace since the 5.1-per cent expansion in the second quarter of 2011,” said Wong Leung-sing, associate director of research at Centaline Property Agency.

“Economic growth comes with increased salary, so people can afford higher rent.”

Agents say the traditional peak season which started from May has added fuel to the fire as local families rush to secure a unit in elite school districts during summer, and university students and newly-arrived expats search for flats to rent.