Hong Kong’s co-living operators slash prices by up to half as people observe Covid-19 social-distancing guidelines

Operators of shared living spaces in Hong Kong have slashed their monthly rates by as much as 50 per cent as they navigate a new normal of social distancing and people avoiding large crowds amid the Covid-19 pandemic.

“We offer 30 to 50 per cent discounts for our units in different locations,” said Zeta Yung, co-founder at The Cube Group that operates about 80 units in five locations on Hong Kong Island and in Kowloon.

The occupancy rate at Cube’s properties had dropped to half in February after Hong Kong reported its first case of the highly-contagious disease on January 22 and then rolled out containment measures such as closing the border with mainland China, getting government employees to work from home – a practice that was largely adopted by the private sector too – and, more recently, limiting diners to four people per table.

Last week, the government also banned the transit and entry of any non-resident foreigners in the city following a spike in the number of imported Covid-19 cases.

The discounts mean Cube’s tenants are now paying between HK$4,500 (US$580) and HK$7,000 a month for units measuring upwards of 80 square feet. They typically get their own bedroom, but have to share a bathroom, kitchen, and other living spaces.

“All in all, the demand is still there but there is a shift from the expat-dominant base to more local inquiries for us with the immigration restrictions,” said Aaron Lee, founder of Dash, which operates 87 co-living rooms in Tsim Sha Tsui and Mong Kok.

Dash has offered, on average, a discount of around 15 per cent compared to a year ago, Lee said, which translates to a reduction in rent of between HK$2,000 and HK$2,500.