According to the latest market data, Hong Kong is facing a significant increase in rental demand as the peak leasing season approaches, largely driven by a large influx of mainland Chinese students. This trend has tightened rental supply across districts, directly pushing up residential rents. However, the market expects a wave of new developments to enter the market in the second half of the year, with over 7,800 units expected to be completed. Approximately 25% to 30% of these new units will offer rental options, which is expected to alleviate current rental pressures.

Frontline agents from Midland Realty noted that 15 new residential projects are expected to be launched in the second half of the year, involving a total of 7,832 units, a 42% increase from the first half of the year. Among these projects, the largest is YOHO WEST Phase 1 in Tin Shui Wai, comprising 1,393 units. However, some projects like Leo Square - One Corner may face delays in phased completion due to government approval postponements, possibly extending until November.

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The new projects mainly feature studio or one-bedroom units, such as LARCHWOOD in Mong Kok and Leo Square - One Corner. The smallest units start from 181 square feet in usable area. Leo Square - One Corner's one-bedroom units have already been marked with rents starting from HKD 17,000 per month. Additionally, the market has recorded a pre-lease case of a unit with a usable area of ​​259 square feet, with a monthly rent as high as HKD 16,500 and a per-foot rent of HKD 64, reflecting high demand for small units.

Among the 15 projects soon to be completed, six are located along railway lines, such as Yu Yi in Ho Man Tin, Bolo in Kam Sheung Road Station, and Capri in Sunrise City, expected to be well received by the market. However, rental units in these projects are expected to be officially rented out around the end of the year.

Benson Poon, Executive Director of Residential Department at Midland Realty, stated that despite 7,832 units entering the market in the second half of the year, only about 2,300 units will be available for leasing, indicating that the market will still face a certain supply shortage. He pointed out that the market will be able to absorb these new units and continue to drive up rental levels.

In addition to the increased leasing demand from mainland students, various talent attraction schemes by the Hong Kong government have also attracted a large number of professionals. According to government data, Hong Kong has accepted over 300,000 talent applications in the past 18 months, with 60% approved and nearly 130,000 professionals having entered. As most new immigrants to Hong Kong will choose to rent initially, this further drives demand in the Hong Kong rental market, expected to continue exerting a positive impact on rental prices.