Rents hit record high on 50 major Hong Kong housing estates
Further increase is likely after a gain of 2.1pc amid strong demand for leasing
Average rents at 50 major housing estates in Hong Kong hit a record high last month, research by Ricacorp Properties shows.
The average rent at 50 estates monitored by Ricacorp rose 2.1 per cent month on month to HK$26.99 per square foot of gross floor area in August, eclipsing the previous record of HK$26.43 per square foot set in July.
"Leasing transactions were very active in August. It led to rents continuing to grow rapidly. The sharp rental growth was because of the deepening of the housing shortage problem," said Patrick Chow Moon-kit, head of research at Ricacorp.
Only 1,082 flats were leased out last month, 12 per cent fewer than the 1,225 deals recorded in July.
Average rents at Luk Yeung Sun Chuen in Tsuen Wan jumped 10.4 per cent to HK$25.50 per square foot, the biggest increase among the major estates.
"Many flat owners found it difficult to buy a bigger flat under the government's cooling measures," said Clarence Fok, sales manager at Midland Realty in Tsuen Wan.
