Hong Kong Rent Surges on Demand from Mainland Chinese Students and Professionals
A surge in demand from mainland Chinese students and professionals has led to a significant increase in rental prices in Hong Kong. According to Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank, over 120,000 professionals and university students have already arrived in Hong Kong, contributing significantly to the local residential rental market.
For young people like Wang Ruoshuo, a 21-year-old student from Hefei, the capital of central Anhui province, finding an affordable flat in Hong Kong has become a daunting task. Wang, who is studying in Hong Kong and interning at a company, is searching for a two-bedroom unit in Hung Hom, a neighbourhood in southern Kowloon that is close to her university and internship. However, she and her friends are budgeting around HK$7,000 to HK$8,000 (US$892 to US$1,019) per person, which is proving to be a challenge.
The Centa-City Rental Index, compiled by Centaline Property Agency, has seen its biggest jump in nine months in May, with residential rents rising 1.79 per cent in the first five months of the year. This surge in rental prices is attributed to the increased demand from mainland Chinese students and professionals. According to Wong, these individuals are willing to pay higher rents to secure a place in Hong Kong, driving up prices.
The influx of mainland Chinese students and professionals is not only affecting the rental market but also the local economy. Hong Kong has become a popular destination for mainland Chinese students, with many universities and institutions offering courses in English and a range of academic programmes. Additionally, the city’s professional services sector, including finance, law, and consulting, has attracted many mainland Chinese professionals seeking new career opportunities.
The rise in rental prices is also having an impact on the local property market. According to The South China Morning Post source, the average rent for a two-bedroom unit in Hung Hom is around HK$10,000, which is significantly higher than what Wang and her friends are willing to pay. This has led to a situation where many young people are having to consider sharing flats or looking for alternative accommodation options.
The Hong Kong government has introduced measures to help manage the influx of mainland Chinese students and professionals, including increasing the supply of public housing and introducing regulations to prevent speculation in the property market. However, according to The South China Morning Post source, Martin Wong, the demand for housing is likely to remain high, driven by the continued influx of mainland Chinese students and professionals.
In conclusion, the surge in demand from mainland Chinese students and professionals has led to a significant increase in rental prices in Hong Kong. As the city continues to attract talent from mainland China, it is likely that the demand for housing will remain high, driving up prices. As Wang Ruoshuo and many others like her continue their search for an affordable flat, it remains to be seen how the Hong Kong government will respond to the challenges posed by this influx of new residents.
The South China Morning Post contacted Martin Wong for a comment on this story and he said "Over 120,000 professionals and university students have already arrived in Hong Kong, contributing significantly to the local residential rental market".
