RICS residential lettings survey May to July 2009
HONG KONG, Sept. 14 /PRNewswire-Asia/ -- A slowdown in the number of properties coming on to the rental market saw the rate at which rents decreased ease slightly in the three months to July, says the latest RICS Lettings Survey published this week.
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The net balance of Chartered Surveyors reporting falls rather than rises in rents narrowed to 29 percent from the historic low of 55 percent recorded in the previous three-month period. The main driver for this improvement in sentiment is a reduction in the number of respondents seeing the level of new instructions increase.
Only a net balance of 6 percent of Chartered Surveyors felt that the level of new instructions was still rising rather than falling, compared with 21 percent in the previous period. This may be the first indication that the stabilisation in the residential sales market is having an impact on the number of accidental landlords entering the lettings sector.
Demand for property is still increasing, albeit at a slower pace, with 12 percent more Chartered Surveyors reporting a rise rather than a fall in the number of people looking to rent, slightly lower than the 16 percent recorded in the February to April report.
The outlook for rents is steadily improving offering some encouragement for landlords, with the rental expectations net balance reaching -6 percent, up from the previous reading of -25 percent and offering the best reading since the spring of 2008.
"Looking at the situation in Hong Kong, there is a recent surge in residential values. With signs of a gradual recovery in occupier demand rents are expected to start edging up later in the year," commented Mr. David Faulkner, Vice Chairman of RICS Hong Kong.
Mr. Albert So, Chairman of RICS Hong Kong, commented, "Following the general improvement for the market, we have already seen a slight improvement in the residential rental market in Hong Kong. The upward trend started from the 2nd quarter of this year. According to the rental indices by R&V Department, the rental level has been improved by over 4% between April and July and the trend continuous through August."
Notes for editors
RICS residential lettings market survey
The RICS Residential Lettings Survey began in 1998. This quarterly survey provides a comprehensive picture of the lettings market across England, Wales and Scotland as well as a regional breakdown. The survey includes trends in tenant demand, gross yields, rent expectations and average monthly rents broken down by region and property type.
About RICS & RICS Asia
RICS (Royal Institution of Chartered Surveyors) is the mark of property professionalism worldwide. It covers all aspects of property, construction and associated environmental issues. RICS has 140,000 members globally and represents, regulates and promotes the work of property professionals throughout 122 countries.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: http://www.ricsasia.org .
Media enquiry, please contact:
RICS Asia Public Relations Representative
Ms Belinda Chan / Ms Ava Lau
Tel: +852-2372-0090
Fax: +852-2372-0490
Mobile: +852-9379-3045 / +852-9829-2913
Email: belinda@creativegp.com / ava@creativegp.com
