While Japan’s nuclear crisis has caused foreign financial institutions to evacuate, Hong Kong has become a favourable location for the same group of expatriates.
“Rental costs, especially in popular districts for (the) Japanese like Kornhill, Tai Koo Shing and Hung Hom, will shoot up,” said Patrick Chow Moon-kit, Ricacorp Head of Research.
“But they will not go up by more than two percent every month.”
Jeffrey Ng Chong-yip, a Director at Hong Kong Property believes that hotels and serviced apartments are seeing high demand now but not ordinary flats.
Meanwhile, some home owners have reduced prices amid worries about Japan’s nuclear crisis.
A home owner at Mei Foo Sun Chuen, one of the housing projects in Kowloon, sold a flat measuring 621 sq ft for HK$3.6 million, HK$370,000 below the selling price.
Another home owner in Shau Kei Wan cut HK$130,000 off before selling a flat at HK$6.2 million.
According to Centaline Property Agency, home viewings at the 10 benchmark housing projects dropped 12 percent over the weekend to 1,175 viewings.
No deals were recorded in Tai Koo Shing, Whampoa Garden at Hung Hom, Laguna City at Kowloon East and Discovery Park at Tsuen Wan over the weekend.