Condo rents grow 3.7% last year
Last year proved a positive one for landlords, but the rental market remains far below its peak, according to numbers out yesterday.
Flash estimates noted that rents for private non-landed homes rose 3.7 per cent over 2018 while the number of leases signed also increased.
But rents last month were 0.9 per cent lower than in November and 16.6 per cent below their peak in January 2013.
There were 1.2 per cent more private non-landed units rented than in December 2018, real estate portal SRX Property noted yesterday.
Rents in all areas last month were up on the same month in 2018.
Rents in the prime or core central region rose by 3.9 per cent, those in the city fringe or rest of the central region 4 per cent and those in the suburbs or outside central region 3.1 per cent.
Ms Christine Sun, head of research and consultancy at OrangeTee & Tie, said the increase in private rental prices could be due to fewer units being available.
"Last year, the number of completed homes fell for a third consecutive year and it was about a third of what was completed in 2016.
"Many homes were (also) demolished to make way for newer developments after the last collective sales cycle."
Apartment and condominium leases rose 2.3 per cent last year to 58,236.
Last month's rents in the Housing Board market rose 1.3 per cent from the same month in 2018 and inched up 0.1 per cent from November.
But last month's levels are down 14.3 per cent from the August 2013 peak.
Mr Nicholas Mak, head of research and consultancy at ERA Realty, said December's lower volumes were typical of "the seasonal year-end lull period".