Rents of serviced apartments are expected to drop further this year due to falling demand as a result of declining global economic growth.

Rents of luxury-end serviced apartments have dropped by 10 to 15 per cent after the global financial crisis,' said Edina Wong, a senior director of residential leasing at Savills.

Wong said the rental cuts were in line with declining demand for serviced apartments that emerged in the fourth quarter of last year.

South China Morning Post