Young expat executives taking shorter secondments in Hong Kong drive demand for serviced apartments

With the outlook for the global economy uncertain, it is perhaps not surprising that some international companies are thinking twice about committing their top talent to lengthy secondments here in Hong Kong.

Slowdowns in Europe and China, ongoing trade tensions and Brexit, mean corporates are increasingly considering shorter stays for their executives, or sending lower-level employees in their place.

Tenants too are weighing up their options, especially if they are unsure about how long they will be in Hong Kong. While we are unlikely to see a drastic decline in demand for unfurnished flats, around 15 per cent of the banking and finance clients our firm is currently working with are looking into serviced apartment options, comparing the amenities and shorter lease terms these offer to traditional two-year tenancy agreements.

Many of these clients are younger executives – singles or couples, without a larger family – who value the convenience and amenities of centrally-located serviced apartments over the space afforded by a larger home on the southern side of Hong Kong Island (and the associated costs).

Luckily for them, the supply of serviced apartments has risen 21 per cent over the past five years, reaching a total of 15,900 units in 2018, according to JLL research. Now, there is a cluster of new serviced apartments cropping up across the city to add to that.