According to the latest report by Savills, the Hong Kong SAR government's talent recruitment program has shown results, with over 100,000 applications approved and approximately 60,000 individuals having entered the territory. As talents continue to arrive in Hong Kong, there has been a slight resurgence in demand for high-end residential rentals.

The report indicates that the residential rental market in Hong Kong was highly active in the third quarter of 2023, especially with a high demand for residences renting between 20,000 to 50,000 Hong Kong dollars per month. This reflects the preferences and budgets of the newly employed individuals in Hong Kong. The frequent market activities have driven a 4% month-on-month increase in the luxury home rental index in the Kowloon area, while Hong Kong Island and the New Territories saw a slight 0.9% rise in the luxury home rental index.

Tenants with higher budgets, such as professionals in the shipping industry, including expatriates from Russia and the Middle East, have shown increased interest in setting up offices in Hong Kong, driving demand for luxury homes and townhouses in the Hong Kong Island area. The overall rental index for townhouses has increased by 4.2% month-on-month.

Furthermore, there has been an increased demand from Cathay Pacific Airways pilots for serviced apartments, with their budgets averaging around 50,000 Hong Kong dollars, with a preference for the Mid-Levels area. However, most pilots have signed short-term contracts, and if employment circumstances change, they may shift to the general rental market.

Wan Chai, Tin Hau, and Sheung Wan remain preferred locations for mainland talents, with budgets ranging from 20,000 to 30,000 Hong Kong dollars. These areas are popular due to their convenient transportation and abundant lifestyle facilities. Tenants with higher budgets tend to favor high-end serviced apartments in Central, as they value luxurious amenities and prime locations.

The report also notes that high-budget individuals, particularly from Mainland China, Europe (excluding the UK), Singapore, and India, have shown strong demand for high-end serviced apartments, represented by areas such as Four Seasons Place. However, the demand from high-budget foreigners from the United States and the United Kingdom has weakened in the third quarter of 2023.

New developments, especially the Sunrise Kornhill project and the Wong Chuk Hang Station, have been highly sought after by tenants. These areas have attracted a significant number of tenants with monthly incomes ranging between 20,000 to 50,000 Hong Kong dollars. Additionally, Kowloon Station remains popular among expatriates from France and Japan, with most having budgets exceeding 50,000 Hong Kong dollars.