Rents for Hong Kong flats fell for the first time in 30 months during October 2011 as they declined to an average HK$20.5 per square foot per month, according to Centaline Property.

The fall in rents has been attributed to more landlords offering their properties to rent instead of trying to sell them.

Nicole Wong Yim, CLSA regional head of property research, said: "When there is a downturn in the job market, people tend to spend conservatively, including on accommodation. The drop in rents would usually take place three to six months after the start of the downturn.

"As the financial sector would be the first to be hit by an economic downturn, property prices on Hong Kong Island will likely to be the first to be affected, as most employees in the sector live on the island. If the downturn persists, the information technology sector will also be affected, and that will drag down rentals in Kowloon and New Territories."

Yim also stated that rents would most likely fall between 5 and 10% in 2012.