Knight Frank: Hong Kong's luxury property rental market performed strongly in the first quarter and recorded a 6.5% year-on-year increase in rents

The Zhitong Finance App learned that according to the latest report by property consultant Knight Frank, among the 16 major cities in the world tracked by the bank, rents for luxury homes (homes accounting for the top 5% of local property prices) in Hong Kong recorded a 6.5% year-on-year increase in the first quarter, ranking second only to Los Angeles. Thanks to talent measures, residential rents in Hong Kong continued to be strong, and the bank maintained a 3% increase in luxury property rents throughout the year.

According to Knight Frank's “Global Luxury Property Rent Index” for the first quarter, the 16 major cities in the world tracked by the bank rose steadily by 3% year-on-year in the first quarter of this year, reflecting the market entering a mature stage after the rapid growth period after the pandemic. Meanwhile, in recent years, the Hong Kong government has actively promoted talent policies, driving up luxury property rents in Hong Kong. The first quarter in Hong Kong saw a significant increase of 6.5% year-on-year, second only to Los Angeles, which ranked number one (with a 7% increase). As for Tokyo, which ranked third, the increase was about 6.1%.

Luxury property rents in Hong Kong continued to be strong. Apart from the year-on-year increase, first-quarter rents also rose 5.2% compared to the first half of last year, and 3.2% quarterly.

Wang Zhaoqi, senior director of Knight Frank and head of the Greater China Research and Consulting Department, said that the Hong Kong government's talent entry program will help drive a recovery in the number of high-income earners and further stimulate demand in the luxury rental market. Furthermore, the limited supply of luxury property in Hong Kong and its uniqueness have led to a steady increase in luxury property rents in major regions. The bank maintains its forecast for a 3% increase in Hong Kong's luxury property rent record this year.