Hong Kong residential leasing market demonstrated robust performance in the first quarter of 2025, extending its upward trend over the past five months with quarter-to-date increase of 0.94% and a notable year-on-year increase of 3.64%. This growth is primarily driven by strong demand from Asian professionals and returning expatriates, particularly tenants from Mainland China, Singapore, India, and Europe. Tight supply of high-quality rental properties, coupled with the approaching peak season, has further pushed rental prices upward. The market has seen several high-profile transactions, including luxury leases a house in Southside and Mount Nicholson, reflecting strong demand in the high-end segment. Meanwhile, cost-effective areas such as Nam Cheong and Kai Tak are attracting young families and professionals. With the traditional leasing peak season from May to August approaching and the "Top Talent Pass Scheme" continuing to draw talent to Hong Kong, Savills forecasts a full-year rental growth of approximately 5% in 2025, with optimistic market prospects. For detailed analysis, please refer to the attached report. For detailed analysis, please refer to the attached report.
- Strong demand for high-end leases: Multinational corporate executives and Mainland Chinese management are driving luxury rental prices, with transactions in Southside and Mount Nicholson reaching over HK$150,000 per month and HK$185 per sq. ft, respectively.
- Asian talent dominates the market: Mainland Chinese professionals remain the largest tenant group, while increasing arrivals from Singapore, India, and Europe are reshaping the city’s expatriate community.
- Tight supply pushes rents higher: Renovation projects in some luxury properties have constrained availability in prime locations such as Mid-Levels West and Wan Chai, with developments like Arezzo and Azura are particularly sought after.
- Rise of cost-effective areas: Nam Cheong, Tai Kok Tsui, and Kai Tak are attracting budget-conscious young families, with modern amenities and convenient transportation being key factors.
- Growing demand for serviced apartments: The revival of the IPO market has spurred short-term leasing demand from professionals in finance and legal sectors, with units priced at HK$30,000 to HK$40,000 per month in Mid-Levels and Kennedy Town being popular among couples and professionals.
Mr. Jack Tong, Director, Research & Consultancy of Savills commented, "Hong Kong’s rental market is gaining momentum, driven by strong demand from Asian professionals and returning expats. Limited prime supply and strong demand are pushing rents higher, we expect steady rental growth over the peak season.” Ms. Sdever Li, Director, Residential Services of Savills said, “Leasing activity remains vibrant in core areas such as Mid-Levels West and West Kowloon, reflecting tenants' emphasis on convenience and lifestyle amenities. With families securing housing for university-bound children and new arrivals under the Top Talent Pass Scheme, the mid-range market will also benefit from growing demand."
Ms. Sdever Li, Director, Residential Services of Savills said, “Leasing activity remains vibrant in core areas such as Mid-Levels West and West Kowloon, reflecting tenants' emphasis on convenience and lifestyle amenities. With families securing housing for university-bound children and new arrivals under the Top Talent Pass Scheme, the mid-range market will also benefit from growing demand.”