Savills has released its Hong Kong Residential Leasing report for Q3 2026, highlighting sustained demand from banking, hedge fund and quantitative fund professionals, alongside an influx of high-income individuals under talent admission schemes. Luxury residential rents on Hong Kong Island rose by 1.7% quarter-on-quarter, with all major luxury districts recording increases. The conversion of some established rental properties to sales, together with refurbishment works at others, has further constrained the availability of quality homes and strengthened landlords’ bargaining power. Looking ahead, continued demand from finance professionals and limited new supply are expected to underpin the market, with luxury residential rents forecast to increase by a further 3%–5% in Q4 2026. For detailed analysis, please refer to the attached report, according to Savills in its Market in Minutes – Hong Kong Residential Leasing report of November 2025.
- Rental growth across all major luxury districts, led by Pokfulam and the Peak: Luxury residential rents on Hong Kong Island increased by 1.7% quarter-on-quarter in Q3 2026, while townhouse rents rose by 1.0%. Pokfulam and the Peak led the gains, recording quarterly increases of 2.3% and 2.2%, respectively. Happy Valley/Jardine’s Lookout, Southside/Shouson Hill and Mid-Levels followed with increases of 1.8%, 1.6% and 1.4%, respectively, reflecting broad-based strength in leasing demand.
- Financial sector expansion and high-income arrivals deepen the luxury tenant pool: The recovery in office leasing is increasingly feeding through to residential demand, as expansion among hedge fund and quantitative fund managers attracts finance professionals to Hong Kong. A total of 51,696 applications were approved under talent admission schemes in the first half of 2026, including 14,847 under the Top Talent Pass Scheme. Category A applicants, with annual incomes of HK$2.5 million or above, accounted for 40.0% of approvals under the scheme, up from 32.4% in 2025, providing further support for the upper end of the rental market.
- Landlords gain bargaining power and increasingly favour financial sector tenants: Strong demand and limited availability have enabled landlords in traditional luxury districts to become more selective about tenant profiles. Owners in Mid-Levels and Southside are increasingly favouring banking and fund management professionals. Meanwhile, rental increases upon renewal have prompted some existing tenants to relocate, intensifying competition for quality homes. Notable transactions during the year included No. 35 Deep Water Bay Road, which achieved a monthly rent of HK$680,000, equivalent to approximately HK$120 per sq ft of saleable area.
- Limited new supply and lease-to-sale conversions further constrain rental availability: The partial repositioning of established rental developments, including Dynasty Court and Bamboo Grove, into the sales market in 2025 removed nearly 200 units from the rental pool. The report identifies only around 150 new first-hand luxury units on Hong Kong Island for 2026–2028, alongside more than 300 rental units subject to strata sales or refurbishment. These supply constraints are expected to continue supporting rents for quality, large-format homes.
- Serviced apartment rents continue to rise, with further growth of up to 3% forecast for Q4: Hotel-like and apartment-like serviced apartment rental indices increased by 0.9% and 1.2% quarter-on-quarter in Q3, respectively, representing year-on-year growth of 5.8% and 3.2%. Demand remains supported by initial public offering (IPO)-related activity and professional services, including lawyers, accountants and financial intermediaries. Flexible lease terms, hotel-style amenities and move-in-ready convenience continue to attract high-budget single occupiers. With occupancy recovering, serviced apartment rents are forecast to rise by 0%–3% in Q4 2026.
Mr. Jack Tong, Director, Research & Consultancy of Savills commented,
“Financial sector expansion and talent admission schemes are jointly driving demand for Hong Kong’s high-end rental homes. The rising proportion of high-income applicants approved under the Top Talent Pass Scheme is further strengthening the luxury market’s tenant base. At the same time, limited new supply in traditional luxury districts, together with the conversion of some rental properties to sales and refurbishment works at others, continues to constrain availability. We expect these demand and supply dynamics to support further rental growth of 3%–5% in Q4.”
Mr. Mark Elliott, Senior Director, Head of Residential Services and International Residential Sales of Savills said,
“We continue to see strong demand for quality luxury homes from senior banking and fund management professionals, particularly for large apartments and detached houses in the Peak and Southside. A shrinking pool of quality rental properties is giving landlords greater leverage in rental negotiations and tenant selection. Meanwhile, serviced apartments remain attractive to high-budget single occupiers who value flexible lease terms, comprehensive amenities and convenience, providing another stable source of demand for the market.”