Return of overseas hires meets tighter housing supply, driving up Hong Kong luxury rents
Repulse Bay is at the centre of a rebound, with leasing activity surging and high-end homes drawing multiple rental offers
Rents in Hong Kong’s luxury housing market are rising as supply tightens, with returning overseas professionals heating up the competition to secure prime homes.
The rebound is most evident in traditional upscale districts such as The Peak and Southside, where leasing activity has picked up sharply this year. Transactions reached 108 in the first quarter, with more than 40 per cent involving monthly rents above HK$100,000 (US$12,760), according to Midland Realty.
At the centre of the surge is Repulse Bay. The area has long been favoured by expatriate families for its proximity to international schools, larger flats and quieter coastal setting, making it one of the city’s most established enclaves for overseas professionals.
The Repulse Bay development is one of the largest landlords in the area, operated by The Hongkong and Shanghai Hotels. It offers more than 400 units, typically ranging from 2,000 to 3,000 sq ft.
“Demand began picking up in March and is now the strongest since the pandemic,” said Irene Lee, director of residential leasing at the complex.
That rebound has quickly translated into bidding pressure. “We released nine units and received about 30 offers,” Lee said. “The final rents were about 10 per cent above our asking prices.”