Valuer Insights
Overseas Talent and Students Drives Property Market
June 26, 2025
Contact
Angus Luk
Senior Director, Valuation & Advisory Services, Hong Kong
Hong Kong has implemented various strategies to attract overseas talent and students to the city. From the end of 2022 to March 2025, multiple talent admission programmes have received positive responses, with over 460,000 applications submitted and more than 300,000 approved as of the end of March.
The Top Talent Pass Scheme (TTPS) has received enthusiastic responses since its launch. As of end-December last year, the HKSAR Government had received over 116,000 applications and approved nearly 92,000. Of these, more than 75,000 talents arrived in Hong Kong with their families.
Source: Immigration Department
The Rating and Valuation Department (RVD) recently unveiled the rental index for April, which reached 193.7 points, posting a marginal increase of 0.31% from March’s 193.1 points. This marks a cumulative rise of 0.94% over five consecutive months, the largest single-month increase in nearly four months and a seven-month high. The influx of talent continues to benefit the rental market, with rents consistently outpacing property prices for five months. Furthermore, mainland students coming to Hong Kong have also contributed to rental demand.
Let’s look at the areas preferred by students and talent. These are typically newer developments located in close proximity to major universities, and high-quality residential complexes. Notable locations include Kai Tak, Tseung Kwan O, Wong Chuk Hang, Tuen Mun, Pak Shek Kok and Hung Hom.
According to the market news, as the rental peak season begins in Summer, recently, mainland students have made early decisions and signed contracts to come to Hong Kong.
One recent rental case involved three students from the Chinese University of Hong Kong sharing a three-bedroom apartment at Metro City, Tseung Kwai O. The unit with a saleable area of 538 sq. ft. was rented for a monthly rent of HK$ 24,000. Based on a market price of this flat, HK$ 6.7 million, the rental yield is approximately 4.3%. Using the latest capped interest rate of 1.94% for H loans as of June 6, a 70% mortgage over a 30-year term would yield a monthly mortgage payment of approximately HK$17,194 - about 28.4% lower than the monthly rent of HK$24,000.
Another notable case involved mainland students renting a two-bedroom unit at Parkland Villas in Tuen Mun, with a saleable area of 389 sq. ft.. The students decided to rent the unit at a monthly rent of HK$ 14,000, making a one-time payment of one year's rent totaling HK$ 168,000, resulting in an average rent of HK$ 36 per sq. ft. Based on a market price of this flat, HK$ 4 million, the rental yield is approximately 4.2%. Using the latest capped interest rate of 1.94% for H loans as of June 6, a 70% mortgage over a 30-year term would yield a monthly mortgage payment of approximately HK$10,265 - about 26.7% lower than the monthly rent of HK$14,000.
In another case, a mainland professional rented a unit of Southland, The Southside in Wong Chuk Hang, with a saleable area of 290 sq. ft.. The unit was rented at a monthly rent of HK$ 18,000, with unit rent about HK$62, marking a new high for this type of unit in the same estate. The market value of this flat now around HK$6.6 million and based on the latest capped interest rate at 1.94% for H loans, a 70% mortgage over a 30-year term would yield a monthly mortgage payment of approximately HK$16,938 - about 5.9% lower than the monthly rent of HK$18,000.
Source: Land Registry/Agency
As interest rates decline and rental trends rise, the trend of "buying cheaper than renting" is gaining traction. This shift is evident not only among local tenants but also among top talents who are increasingly transitioning from renting to buying.
Source: Land Registry/Agency
The trend of buying being more affordable than renting has further expanded in this year.
With declining interest rates and rising rent incentives, rental investors are expected to become more active in coming months, particularly in Kai Tak, Tseung Kwan O, Wong Chuk Hang, Tuen Mun, Pak Shek Kok and Hung Hom. These locations offer better rental returns and strong potential for property price rebounds.
Looking ahead to the second half of the year, although Hong Kong’s property market may face further pressure from global market headwinds and external uncertainties, the trend of buying over renting is expected to persist in the next few months if the low rate conditions continue in the short run. Property prices in Hong Kong are likely to remain stable.
The Top Talent Pass Scheme (TTPS) has received enthusiastic responses since its launch. As of end-December last year, the HKSAR Government had received over 116,000 applications and approved nearly 92,000. Of these, more than 75,000 talents arrived in Hong Kong with their families.
Source: Immigration Department
The Rating and Valuation Department (RVD) recently unveiled the rental index for April, which reached 193.7 points, posting a marginal increase of 0.31% from March’s 193.1 points. This marks a cumulative rise of 0.94% over five consecutive months, the largest single-month increase in nearly four months and a seven-month high. The influx of talent continues to benefit the rental market, with rents consistently outpacing property prices for five months. Furthermore, mainland students coming to Hong Kong have also contributed to rental demand.
Let’s look at the areas preferred by students and talent. These are typically newer developments located in close proximity to major universities, and high-quality residential complexes. Notable locations include Kai Tak, Tseung Kwan O, Wong Chuk Hang, Tuen Mun, Pak Shek Kok and Hung Hom.
According to the market news, as the rental peak season begins in Summer, recently, mainland students have made early decisions and signed contracts to come to Hong Kong.
One recent rental case involved three students from the Chinese University of Hong Kong sharing a three-bedroom apartment at Metro City, Tseung Kwai O. The unit with a saleable area of 538 sq. ft. was rented for a monthly rent of HK$ 24,000. Based on a market price of this flat, HK$ 6.7 million, the rental yield is approximately 4.3%. Using the latest capped interest rate of 1.94% for H loans as of June 6, a 70% mortgage over a 30-year term would yield a monthly mortgage payment of approximately HK$17,194 - about 28.4% lower than the monthly rent of HK$24,000.
Another notable case involved mainland students renting a two-bedroom unit at Parkland Villas in Tuen Mun, with a saleable area of 389 sq. ft.. The students decided to rent the unit at a monthly rent of HK$ 14,000, making a one-time payment of one year's rent totaling HK$ 168,000, resulting in an average rent of HK$ 36 per sq. ft. Based on a market price of this flat, HK$ 4 million, the rental yield is approximately 4.2%. Using the latest capped interest rate of 1.94% for H loans as of June 6, a 70% mortgage over a 30-year term would yield a monthly mortgage payment of approximately HK$10,265 - about 26.7% lower than the monthly rent of HK$14,000.
In another case, a mainland professional rented a unit of Southland, The Southside in Wong Chuk Hang, with a saleable area of 290 sq. ft.. The unit was rented at a monthly rent of HK$ 18,000, with unit rent about HK$62, marking a new high for this type of unit in the same estate. The market value of this flat now around HK$6.6 million and based on the latest capped interest rate at 1.94% for H loans, a 70% mortgage over a 30-year term would yield a monthly mortgage payment of approximately HK$16,938 - about 5.9% lower than the monthly rent of HK$18,000.
Source: Land Registry/Agency
As interest rates decline and rental trends rise, the trend of "buying cheaper than renting" is gaining traction. This shift is evident not only among local tenants but also among top talents who are increasingly transitioning from renting to buying.
Source: Land Registry/Agency
The trend of buying being more affordable than renting has further expanded in this year.
With declining interest rates and rising rent incentives, rental investors are expected to become more active in coming months, particularly in Kai Tak, Tseung Kwan O, Wong Chuk Hang, Tuen Mun, Pak Shek Kok and Hung Hom. These locations offer better rental returns and strong potential for property price rebounds.
Looking ahead to the second half of the year, although Hong Kong’s property market may face further pressure from global market headwinds and external uncertainties, the trend of buying over renting is expected to persist in the next few months if the low rate conditions continue in the short run. Property prices in Hong Kong are likely to remain stable.