As more expats flock to Hong Kong, luxury home rents poised for further upswing
Hong Kong’s growing number of expatriates is boosting the city’s residential property leasing market with luxury rents likely to rise by about 5 per cent this year and continue their upswing in 2027, according to property consultancy JLL. The private residential rental index by the Rating and Valuation Department had surged by 18.5 per cent as of June to 205.8 from the Covid-19 pandemic trough in…
Hong Kong's residential property leasing market is experiencing a resurgence due to a surge in expatriate professionals seeking housing, with luxury rents poised for a significant increase. According to property consultancy JLL, luxury rents are expected to rise by approximately 5% this year and continue their upward trend in 2027.
The private residential rental index has already surged 18.5% to 205.8 as of June 2026, from the Covid-19 pandemic low of 173.6 in January 2023, marking the first sustained breach of the 200 threshold.
The influx of expatriates is driven by resurgent initial public offering (IPO) activity and growth in the asset management sector, both rooted in a broader financial-sector resurgence. Relocation firm Dwellworks Hong Kong reported that Europe and the US are the primary sources of finance executives moving to the city, with finance executives relocating from Europe and the US, as well as Singapore and Japan.
Emerging demand for luxury housing is also coming from the wealth management sector, as Hong Kong has replaced Switzerland as the world's largest cross-border wealth centre, with a total value of US$2.95 trillion in 2025. Financial services visas granted to foreign nationals jumped 16.9% to 2,343 in 2025, the most since 2022, with 678 visas granted in the first quarter of 2026, representing around 29% of the previous year's total.
With the growing demand for expatriate housing, some districts in Hong Kong are becoming more favored by expatriates, such as those near their offices, international schools, and those that fit their budget. JLL's Norry Lee noted that expatriate housing demand has become more geographically diverse, with companies moving to East Kowloon and West Kowloon, leading to a demand for newer residential developments, penthouses, and town houses.
The Hong Kong government's proposal to grant tax breaks on carried interest, a performance fee earned by hedge fund and private equity managers, is expected to strengthen the city's appeal to fund managers, family offices, and investment professionals, further boosting demand for luxury residential leasing.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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