A 235 sq ft studio flat at Novo Land in Tuen Mun, was leased at HK$12,200 (US$1,565), which translates to HK$51.9 per square foot, setting a new high for rents in the estate. The rent is on par with some projects on Hong Kong Island.
For example, a 236 studio sq ft flat at The Holborn in Sai Wan Ho, is currently leasing for HK$14,000 per month, or HK$59 per square foot, according to data available on Midland Realty website. On a per square foot basis, the rental yield is higher than units at Residence Bel-Air, a luxury housing estate in the Southern district of Hong Kong Island. A 1,340 sq ft seaview unit in phase six of Bel-Air was leased for HK$65,000 per month, or HK$48.
5 per square foot, according to a Midland agent. “The rental market in that area [New Territories] is relatively more active,” said Buggle Lau Ka-fai, chief analyst at Midland Realty. Small to medium-sized flats priced around HK$20,000 per month are very popular and New Territories tends to offer more options than Hong Kong Island, he added.
The Hong Kong Monetary Authority last kept its base rate unchanged for the seventh time earlier this month, a move in lockstep with the US Federal Reserve decision. The Fed has signalled one potential rate cut this year as early as September, while investors have priced in three cuts for the rest of this year, according to CME Group. Prices of second-hand homes fell 1.
2 per cent in June to the lowest since October 2016, according to government data, bringing the tot.