Betting on Chinese demand, Hong Kong developers turn to rental market

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Betting on Chinese demand, Hong Kong developers turn to rental market

HONG KONG - Some Hong Kong developers are now turning to housing rental and the leasing market to weather a prolonged downturn in its property market and to serve surging rental demand from mainland Chinese professionals and students.

Rents of private homes in Hong Kong in July rose to their highest level in nearly five years, while home prices dropped 22% during the same period, latest data showed on Wednesday. Such projects come as the city has approved 210,000 applications under its talent schemes launched two years ago. One of its schemes gives graduates from the world's top 100 universities or those earning annual income of at least HK$2.5 million a 24-month visa to stay in Hong Kong.

The Hong Kong government announced last year that from the 2024 academic year, the quota for non-local students in the eight universities would be doubled to 40% of admissions. While Lee cautioned rents for student housing market could drop longer term if supply grows quickly, students are willing to pay an increase for fear of being priced out.

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