Calls from laid-off Cathay Pacific Airways Ltd (國泰航空) pilots began arriving at OKAY Property Agency Ltd (屋企) not long after the Hong Kong airline announced one of the biggest job cuts in global aviation.
The cull that affected more than 5,000 Cathay employees on Wednesday has forced some to find cheaper housing or leave Hong Kong altogether. It is a painful blow for one of the territory’s biggest workforces, and yet another hit for a property market under pressure from political turmoil and a COVID-19 pandemic-induced recession.
Vacancies for apartments priced at HK$65,000 (US$8,396) a month or more had already been rising in Discovery Bay, a neighborhood about 30 minutes from the airport that is home to many pilots, said Nina Schulte-Mattler, a senior manager in the residential division of OKAY Property.
Photo: AFP
In Tung Chung, another area popular among Cathay employees, about 60 renters have surrendered their leases over the past three months, said Joe Lee (李錦榮), a senior area sales manager at Midland Realty Ltd (美聯物業).
“I’ve never seen so many people giving up their rented apartments in my career,” Lee said. “Local crew members who were let go or had their salaries cut are terminating their leases.”
Rental prices in Tung Chung have slid 5 percent since the start of the year and might fall another 3 percent next quarter, Lee said.
The majority of rental demand in the neighborhood comes from airline crew members, employees with logistics companies, and other professionals related to aviation.
The industry is also well represented in Discovery Bay, popular for its tree-lined streets and waterfront apartments.
Some landlords in the area are now happy to find takers at HK$85,000 for properties previously going for HK$110,000, Schulte-Mattler said.
A few pilots who used to lease those high-end units have left Hong Kong for jobs elsewhere or retired early, she said.
Other landlords have downsized to the HK$40,000 to HK$60,000 price range, where demand is more stable, she said.
Senior employees of Cathay Pacific or its subsidiary Cathay Dragon (國泰港龍) can receive HK$60,000 to HK$100,000 in monthly housing allowances, said Rickie So (蘇志強), a property agent with Century 21 Newcourt Realty (世紀21新域地產) in Discovery Bay.
He has seen about 50 properties in that price range drop their rent by 15 to 20 percent in the past two months in anticipation of layoffs.
Further price cuts could start emerging in a couple of months, So said.
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