Hong Kong still most expensive housing for high-end expats, though Covid-19 crisis may see rents come down
- City tops ranking for the third year running with an average rent of HK$88,000 for ‘executive-level’ expats
- While ECA International predicts rents could drop due to the Covid-19 crisis and social unrest, some expats believe it more likely people will simply leave
The the third year in a row, the city topped a ranking by ECA International based on the monthly cost of an unfurnished, three-bedroom, mid-range flat in an area commonly inhabited by executive-level expats.
The eye-watering figure, an increase of more than 3 per cent from the previous year, is driven mainly by the city’s high population density and lack of new housing.
However, rent is expected to drop in the coming months.
“In light of the prolonged anti-government protests and coronavirus outbreak currently under way, we expect to see rents fall throughout 2020 as the number of overseas workers in Hong Kong drops significantly and the usually high demand for housing is tempered,” said Lee Quane, regional director of Asia at ECA International.
Hong Kong has been grappling with social unrest arising from the now-withdrawn extradition bill since June of last year, and the public health crisis caused by the outbreak of Covid-19 since January.
This is a developer-led market that’s not highly leveraged, so not under pressure even in times of recession or when other kinds of pressure come to bear
