Hong Kong’s residential leasing market continues to demonstrate steady momentum, driven primarily by renewed demand from returning expatriates and relocation activity among existing tenants. The market shows structural segmentation, comprising three main tenant groups, each with distinct housing preferences and budget levels. Despite developers actively converting newly completed projects into rental stock, high-quality supply in core locations remains limited, supporting rental resilience. With the seasonal leasing peak approaching, demand is expected to further rise in the third quarter. For detailed analysis, please refer to the attached report, according to Savills in its Market in Minutes – Hong Kong Residential Leasing report of August 2025.
- Segmented Demand Among Expat Tenants: European expatriates working in finance typically have rental budgets of HKD 70,000 to 80,000 per month and prefer larger s units in Mid-Levels. Indian tech professionals tend to have budgets of HKD 50,000 to 60,000 and favor more affordable areas in Western Mid-Levels.
- Mainland Talent as a New Growth Driver: Mainland China professionals arriving under schemes such as the Top Talent Pass Scheme generally have rental budgets of HKD 30,000 to 40,000, with preferences for emerging residential areas in Kowloon West such as Nam Cheong and Olympic Station.
- Surging Relocation Demand: Tenants forced to relocate due to landlords selling their properties are actively seeking replacement units in the same district, with some opting for sub-district alternatives to maintain their original rental levels.
- Shift in Developer Strategy: Developers such as Sino Group have converted projects like One Central Place into rental stock, while Hang Lung invested HKD 700 million to renovate The Summit to enhance leasing competitiveness.
- Stable Demand for Serviced Apartments: Buoyed by an active IPO market, short-term contract professionals in finance and legal sectors are driving demand for serviced apartments, with typical budgets ranging from HKD 20,000 to 30,000.
Mr. Jack Tong, Director, Research & Consultancy of Savills commented, “Residential rental market maintained steady momentum in Q2 2025, supported by expats’ demand and tenant relocations. While developers increasingly retained properties as rental inventory, prime supply remained limited and maintained resilient rental values. Seasonal peak is expected in Q3.”
Ms. Sdever Li, Director, Residential Services of Savills said, “The demand from expatriates and Mainland professionals continues to diversify, driving leasing activity in both core and emerging districts. Modern residential developments in Kowloon West are particularly attractive to young families, while tight supply of premium properties in Mid-Levels is expected to further support upward rental pressure.”