Since government launched the DSD (Double Stamp Duty) in second half of February, trading in the property market have became dull. Some owners rented out the house instead of selling it. It made the renting source increased. Plus with foreign buyers willing not to get into the real estate market after BSD (Buyer Stamp Duty) being launched, some people who need to stay in Hong Kong for studying or working choose renting house current. This strengthens owners’ decision of being renter rather than selling house. The rent is suppressed because of increasing of supply. But there are many foreign renters in the market. They helped to stable the rent level.
The lead analyst of Midland, Liu Jia-hui expressed, the average sq ft rent of private house in April base on cover area was about HKD23.6 which fell about 1.4% by month. In March, some potential buyers chose to wait and see. Some of them chose renting instead of buying. The demand increased and offset the pressure from renting source’s increase. So the rent can developed stable in March. However, many renting demands were solved by the market in April in succession. So the rent is suppressed and it will finally softened.
Rent slightly fell in April but still higher than last year’s.
Analyzing the renting cases promoted by Midland in March and April, and comparing the different units in different floor but in same layout of same building, room F, high floor, building 6 of The Pacifica in Cheung Sha Wan among was rent out at monthly rent of HKD 14,500 last month at record. It fell about 3.3% comparing with HKD 15,000 which was the month rent in March of the unit located in slightly lower floor. In addition, room C, high floor, building 3, Central Park Towers in Tin Shui Wai was rent out at about HKD 9,200 monthly in March. The rent fell 2.2% comparing with about HKD 9,000 which was the rent of unit in low floor, same layout and same building in April.
Liu Jia-hui believed, even though the rent of the private house in April fell by month. But it still rose about 1.5% by record comparing with the data in the end of last year. Further more, renting hot season in summer holiday is coming. The demand for renting will increase and will positively support the rent of residential house.
Foreign buyers gave up buying house. The rental yield rises.
Associate professor of Finance and Science of Design Making Department of Hong Kong Baptist University, Mai Cui-cai believed, after BSD (Buyer Stamp Duty) being launched, foreign buyers were not willing to get into Hong Kong real estate market. Some people who need to stay in Hong Kong for studying or working choose to rent house currently. It strengthens owners’ decision of being renter rather than selling house. Some expert pointed, there is no reason to drive owners selling house currently at the same time. The rental yield is high. So it is estimated that renting market will develop in positive trend.
