Japan quake fuels Hong Kong home rental costs
March 30, 2011 - Causeway Bay
The occupancy rate of rental homes has shot up since the quake, tsunami, and nuclear fallout occurred on Japan's main island of Honshu, Yonhap news agency has reported.
"We have been receiving more phone inquiries, especially from the financial sector, after the earthquake in Japan," said Man Cheung, an agent at the Golden Stars Property in central Hong Kong.
"They are usually in a hurry to relocate themselves in Hong Kong and are willing to pay high prices."
In the Mid-Levels, one of the most popular residential areas among expatriates in Hong Kong, furnished new apartments, sized under 1,000 square feet, are easily rented out at prices from HK$20,000 (US$2,566) to HK$40,000 (US$5,129) per month.
Furnished apartments in secondary areas, such as Causeway Bay and Fortress Hill, are priced at HK$30,000 to HK$40,000 (US$3,847 to US45,129) per month, and are already full, she said.
An official at a Hong Kong-based property investment firm expected the rental volume to rise further in the next few weeks. "Occupancy at two high-end furnished apartment complexes developed by Sun Hung Kai Properties in the central area climbed as much as 3 percentage points to 98 percent recently," said the official, who asked not to be named.
The units, between 475 to 1,420 square feet, are priced between HK$50,000 (US$6,410) and HK$100,000 (US$12,822) per month, he added.
Meanwhile, Hong Kong hotels have run out of rooms for this month as they accommodate evacuees from Japan.
The month of March, except for the last weekend, is usually low season for the Hong Kong tourism industry. The prices for hotel rooms have risen three times as high as usual, industry officials said.
Via Propery Report
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