The cost of living in Hong Kong is well ahead of its Asian peers and is causing expats to consider cheaper alternatives.
Expats are a diminishing force in the luxury residential leasing market which is now dominated by both locals and mainlanders.
The townhouse market quietened down after a robust Q1, with rents posting a mild drop of 0.5% over the second quarter.
Luxury apartment rents on Hong Kong Island were down by 1.0%, ending the rental increments recorded over the previous nine quarters.
Vacancy remains low on Hong Kong Island as landlords are choosing to renew contracts with tenants.
The falls in both rents and occupancy rates in the serviced apartment segment were likely to have been caused by a rise in the FIREBS unemployment rate over the quarter.
The first deal in K11 ARTUS in Victoria Dockside set a new record for per square foot rents in the Kowloon residential market.