Shifts in the property rental market have gone both directions last month with rents of private condominiums falling and that of HDB flats rising.
Overall rents inched up this year
Rents for non-landed private homes fell 0.2% in June, following a similar decline in May. However, in a year-on-year comparison, rental prices for condominiums are still 1.9% higher than that in June last year.
From the peak in January 2013, private non-landed residential rents have indeed fallen, by 17.5%.
Last month, private home rentals fell 0.5% in the core central region and 1.1% in the outside central region.
In the rest of the central region, however, rental prices rose 0.9%. Compared to June 2018, prices have risen across the board with rents 2.7%, 2.1% and 1% higher this year in the core central, rest of central and outside central regions respectively.
HDB flat rents rose 0.4% last month. This is the second consecutive month of increase following a 0.1% increase in May. Rental prices of HDB flats in mature estates rose 0.7% while that in non-mature estates rose 0.1%.
The market may, however, experience some downward pressure moving forward as more HDB flats reach their 5-year minimum occupation period (MOP) and will heighten competition.
Q2 and Q3 rental volume expected to increase
Fewer private condominiums were tenanted last month. 4,704 units were leased, down 4.2% from May and 6.4% from last June. In the whole of the second quarter, however, 0.9% more units found tenants in comparison to Q1.
Analysts do however expect an increase in rental volume in the second and third quarter of the year as more expatriates tend to renew or sign new contracts during these periods.
The political uncertainty in Hong Kong may affect some adjustments in the rental market here as International companies may consider shifting their operational headquarters here instead.