Hong Kong, mainland Chinese cities among worst performers in Savills index tracking home rent growth this year
- Hong Kong came in last with a 1.3 per cent decline in rents in the year’s first half
- Without a full reopening of the city’s border, rents will see negative growth over the whole year, Knight Frank executive says
Out of the 10 cities in the bottom third, five were Chinese with Beijing rents growing by a mere 0.3 per cent and placing 23rd. Rents in Hangzhou, which is known for its gardens, improved by 0.2 per cent and it was 25th on the list. Guangzhou, which neighbours Hong Kong and Shenzhen, reported a 0.1 per cent rise and was next on the list.
“Asian cities such as Hong Kong, Shenzhen and Hangzhou saw a more muted performance, [and are] still contending with challenges related to Covid-19,” the report said.
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Hong Kong and mainland China have kept strict border restrictions in place even as much of the world has done away with them.
And with Hong Kong’s borders unlikely to be fully reopened soon, rents in the city may remain depressed for the rest of the year, an analyst said.
