Why did leasing volume for private homes in CCR decline?
There is a scarcity of supply for wealthy expatriates.
For the third consecutive quarter, Savills said the leasing volume of private residential assets dropped by 8.7% to 20,751 transactions in the second quarter this year.
Savills said the leasing volume in the core central region (CCR) went down because of lack of accommodation for rich foreigners.
“Consequently, without their preferred accommodation, some have rescheduled their relocation here or temporarily living in serviced apartments/hotels while their families are waiting overseas,” said Savills in its 2022 report.
This trend is still happening in the third quarter of 2022, Savills also said.
“From the top down, this has a pneumatic effect on forcing up rents across the rental chain. However, stocks are also limited in those regions, but not in such short supply as those in the luxury range,” the property expert said.
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