Home rents in Hong Kong climb to 18-month high as students and professionals return while interest rates deter buyers

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Home rents in Hong Kong climbed to an 18-month high in July as the city’s private housing market entered its peak season, as students and working professionals returned to the city and high interest rates continued to deter renters from becoming buyers.

Rents increased 1.15 per cent in July to 114.02 from a month earlier, according to the Centa-City Rental Index compiled by Centaline Property, which tracks 138 housing estates across the city.

The index has risen 5.45 per cent over the six-month period starting January, when it fell to its lowest level since August 2016.

β€œProspective buyers have switched from buying to renting, and the inflow of students and professionals has greatly increased the demand for rental properties,” Yeung Ming-yee, senior associate director at Centaline Property Research, said in a report on Thursday.

β€œThe private housing market has entered the traditional summer leasing peak season, and the number of leasing cases has increased, leading to a steady increase in rents. The rental market continues to be active.”

Centaline expects the index could climb by another 1.74 per cent to 116 in the third quarter, a level not seen since October 2021.

Housing rents have been rising inΒ Hong Kong since the beginning of this year, due largely to an influx of mainland professionals and graduates.Source: SCMP

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