The firm said expatriates returned to the city from Singapore in the first quarter of the year, though there was minimal activity in the major luxury enclaves and the market remained subdued.
Leasing transactions occurred mainly in the lower rental brackets in Kowloon, it said, driven by an influx of talent from the mainland.
“In addition to mainland talent, expatriates and individuals from mainland China working in hedge funds and cryptocurrency have recently contributed to increased demand for leasing, each exhibiting distinct housing preferences,” said Jack Tong, the director of Savills Research & Consultancy.
Many of these renters have profited from cryptocurrency trading, the firm said, adding that they generally seek new flats in Kowloon with established surrounding mainland communities or opt for short-term accommodation.
In the fourth quarter, residential rents for luxury flats in Kowloon rose 3.9 per cent from the third period, compared with a decrease of 0.2 per cent in Hong Kong Island, according to Savills residential rental indices.
