School district home rents drop by the most in 2 years as more Hong Kong residents head for the emigration queue
- Property agency data show that areas with underpopulated schools saw the biggest rent declines through the pandemic
- Net outflow of residents is likely to continue for some time, with a negative and lasting impact on the housing market, CUHK professor says
Hong Kong districts with shrinking student populations have registered the biggest declines in home rents since the coronavirus pandemic broke out in early 2020, according to property agency data, suggesting that a wave of emigration is profoundly impacting the property market.
From January 2020 to May 2022, home rents in the eastern Hong Kong Island areas of Quarry Bay and Taikoo Shing fell by 7.8 per cent, according to Midland, while rents in the southern Hong Kong Island areas of Aberdeen and South Horizons slipped 3.6 per cent. Other areas on Hong Kong Island saw home rent declines ranging from 0.93 per cent to 2.4 per cent.
In Kowloon, rents in areas close to Wong Tai Sin, such as Kwun Tong, Kowloon Bay, Lai Chi Kok, Mei Foo Sun Chuen and the Hung Hom-Whampoa Garden neighbourhoods, retreated by 4.2 per cent to 6.3 per cent.
The rent declines and the possible school relocations coincide with a wave of both local and expat residents departing the city over the course of the pandemic.
