Residential Hong Kong Market News 2025
Feb 2025 Last Updated
Photo: Serviced Apartment in the Happy Valley District
Hong Kong's real estate landscape is renowned for its dynamism, driven by an acute scarcity of land, a dense urban environment, and a significant international presence. This guide provides some insights to the Hong Kong luxury and economy rental market, and the role of furnished and serviced apartment flexible solutions for tenants.
Current Trends
Transaction Volumes: The market is expected to see around 60,000 residential transactions in 2025, a 10% increase from the previous year. This growth reflects a balanced mix of primary and secondary market activities, with serviced apartments gaining traction due to their flexibility.
Rental Market: Anticipated growth of approximately 5% in FY2025. The demand is particularly high for smaller units such as studios and 1 bedroom apartments, which cater to singles, young professionals, and students needing short-term or flexible move-in ready housing options, from 1 month up to 12 months stays.
Price Recovery: After a significant correction in 2023-24, residential prices are expected to see a mild recovery of 0% to 5%. Newer properties in prime locations are likely to stabilize first, while older properties might take longer.
Interest Rates and Borrowing Costs
Interest rates have been on a downward trend, making mortgage payments more affordable than rent for some, yet the demand for rentals remains robust. This is due to economic uncertainties, the allure of flexibility, and the rising cost of homeownership, favoring the rental market, with an increasing demand for both temporary or long term stays with serviced apartments.
Types of Residential Properties
Commitments: Usually require a 2 year lease with an optional break option after the first year, unfurnished spaces are the norm, and tenants are responsible for applying and settling utility payments such as water, gas, electric and maintenance.
Best for: Those planning a longer stay, looking to personalize their living space, or invest in a property.
Benefits: No need for furniture or appliance purchases, utilities are included, and amenities like housekeeping, concierge, and sometimes even business facilities or gyms are at your disposal. They offer short to mid-term lease options, perfect for those who are not looking to commit long-term.
Clientele: Business travellers, expatriates, students, or anyone seeking a "home away from home" without the usual rental hassles.
Rental Market Insights
Current Trends: One and two bedroom units are in high demand, with rental prices showing signs of stabilization. Seasonal variations can affect rates, with peaks during tourist seasons or school terms.
Lease Terms: Serviced apartments typically offer flexible terms - monthly, quarterly, or annual, with some serviced apartments providing daily or weekly options, which are typically catered by hotels.
Inclusions: Rent often covers utilities, internet, housekeeping services, and access to on-site facilities.
Deposits and Fees: A security deposit (usually one/two month's rent, refundable after stay) and advance rental (one month’s rent) is standard.
Learn more from our 9 Step Guide to Booking a Serviced Apartment in Hong Kong.
Tips for Renting Serviced Apartments
What to Look For: Evaluate the location for daily convenience, check the list of amenities, understand lease flexibility, read tenant reviews, and assess the value relative to the amenities offered.
Negotiation and Booking: Be aware of peak booking times; negotiate on lease length for more attractive rental packages. some serviced providers also provide further discounts if annual rents can be pre-paid in advance. Engage an advisor well in advance (one to three months) for peak seasons or during major events. If you have an upcoming requirement, provide your needs to our dedicated serviced apartment concierge service to take care of your booking.
Living in Hong Kong: Adapt to the local culture, learn the transport system, and explore the city's diverse neighborhoods to fully experience Hong Kong life.
Serviced apartments in Hong Kong offer a unique blend of luxury, convenience, and flexibility, catering to a wide array of needs from short-term business trips to extended family stays. By understanding the market dynamics, location benefits, and what to expect in terms of amenities and costs, including rental rate ranges, you can make an informed decision that aligns with your lifestyle and stay duration.
Explore Your Options: Look through our platform to browse through a curated selection of serviced apartments that match your criteria for a memorable Hong Kong experience. submit an enquiry or contact us by Whatsapp to speak to an advisor.
