21/08/2023
AN INFLUX of mainland Chinese taking advantage of a new visa programme to work in Hong Kong is helping buoy rents in the city to the highest level in almost two years, reversing a downward trend that started during the pandemic.
Hong Kong saw its population grow by 2 per cent, or 152,000 people, in the past year to June from a year earlier, with the government partly attributing the rise to the different talent attraction programmes.
Almost 26,000 applications for the Top Talent Pass Scheme have been approved as of June, according to government data.
The programme was introduced in October after the labour force shrank by 140,000 in recent years. Most of the applicants are from mainland China.
As a result, home rents had softened in one of the world’s most expensive markets but have rebounded since the border with mainland China reopened. Rents rose for six straight months to the highest since late 2021 in July, according to Midland Realty.
The real estate agency expects rents in 2023 to increase as much as 10 per cent, the biggest growth in 11 years as the inflow from the mainland continues. A July report from Bloomberg Intelligence estimates that rentals in Hong Kong could rise at least 5 per cent this year thanks to demand from mainland Chinese moving to the city.
