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Rents in Hong Kong are poised to increase by 8 to 10 percent this year, marking the largest surge in 11 years. This rise is attributed to a combination of mainland Chinese students and professionals coming to the city through the government’s talent-import programs, resulting in a landlord’s market.
Midland’s Realty reports that the average rent for private residential properties in Hong Kong reached HK$35.26 (US$4.50) per square foot in July, the highest since October 2021. The company anticipates the average rental price for the entire year to range from HK$36.22 to HK$36.89 per square foot.
Approximately 75,000 individuals were approved under Hong Kong’s talent-import initiatives in the initial seven months of this year. This nearly doubles the previous year’s count of 38,000 and represents the highest number since 2008. Concurrently, around 40,000 mainland Chinese students are currently enrolled across Hong Kong’s eight major universities, as indicated in the report.
These elements are expected to propel the rental market to outperform the home buying market in the current year, according to Midland’s assessment. While various forecasts predict a potential 10 percent decline in home prices in 2023, Midland’s report suggests a 5 percent rise.
Sammy Po, CEO of the company’s residential department, stated that with the government actively working to attract talent, there's an anticipation of a growing influx of talent to Hong Kong in the upcoming year, thereby giving a boost to the local property market .
Hong Kong’s present population of 7,498,100 is only slightly lower by 23,000 compared to the peak observed in 2019. This follows a net inflow of around 152,000 individuals between the middle of 2022 and the middle of 2023.
Furthermore, the complete impact of the talent schemes has yet to be fully felt. Tina Cheng, senior strategy director of Midland’s immigration consulting department, mentioned that out of the total increase of 152,000, over 83 percent occurred before the launch of the talent scheme in December of the previous year, meaning the population growth resulting from the talent program introduced in the first half of this year is still pending reflection.
According to the report, Hong Kong’s population is projected to rise by 100,000 to reach 7.598 million by the conclusion of 2023, surpassing the 2019 peak by slightly more than 1 percent.
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