With the summer season underway, Hong Kong’s residential rental market has entered its peak period earlier than usual. Newly delivered projects are attracting substantial attention, reflecting strong demand from tenants. Recently completed projects like Victoria Harbour Phase III in West Kowloon and The Grand Victoria in Hung Hom have seen impressive leasing performance, bringing rental yield into focus.

Senior Regional Sales Manager at Centaline Property Agency, Hui Wing Sang, reported that a mid-level B unit in Tower 2, with an area of 312 square feet and an open kitchen, was leased for HK$18,800 per month. This translates to a rental rate of HK$60.3 per square foot. The owner purchased the property in May 2021 for approximately HK$8.3 million, yielding a rental return of about 2.7%.

A high-floor P unit in this development, measuring 269 square feet, was recently leased for HK$16,800 per month, or HK$62.5 per square foot. The owner acquired the property in July 2022 for around HK$6.85 million. The quick lease of this unit post-completion yields an approximate rental return of 2.9%.

According to Midland Realty’s Senior Regional Sales Manager, Ma Siu Fung, a low-floor B2 unit in Tower 5, Phase 1, with an area of 405 square feet and two bedrooms, was leased for HK$16,000 per month. This results in a rental rate of about HK$39.5 per square foot. The property, purchased in 2022 for around HK$7.73 million, provides a rental yield of approximately 2.5%.

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Yang Man Kit, Chief Regional Sales Manager at Centaline Property Agency, reported an active rental market at The Consonance. A ground-floor unit in Tower 1, with an area of 640 square feet, including two bedrooms and a study, was recently leased for HK$31,000 per month. This translates to a rental rate of about HK$48 per square foot. The owner purchased the property in January 2023 for around HK$11.48 million, resulting in a rental yield of approximately 3.2%.

According to Centaline Property Agency’s Chief Regional Sales Manager, Yang Man Kit, rental supply in Kornhill Gardens is tight, especially in the Lower Kornhill area. A recent transaction involved a low-floor unit in Tower Q, measuring 466 square feet, which was leased for HK$18,000 per month after initially being listed for HK$19,000. This translates to a rental rate of about HK$38.6 per square foot. The property was purchased in 2010 for HK$4.09 million, providing an impressive rental yield of about 5.3%.

Real estate professionals in Hong Kong note that rental yields are particularly attractive during the initial phase of new property deliveries. These new developments appeal to a wide range of tenants, including mainland students, overseas professionals, and local residents. The demand from these tenant groups has significantly boosted the rental market activity for new projects.

With the early onset of the summer leasing peak, Hong Kong's rental market is performing robustly, with new properties yielding higher-than-average returns. As more new projects are delivered, this active rental market trend is expected to continue. Landlords and tenants alike should stay vigilant, monitor market trends closely, and strategically plan their leasing decisions to maximize benefits and returns.