MANILA, Philippines - Hong Kong is the most expensive location in the world to rent a high-end three-bedroom apartment, followed by Caracas in Venezuela, according to research.
Despite a two to three percent correction since this time last year, rents for an unfurnished three-bedroom apartment in a sought-after area of the city remain high, averaging $11,550 per month, the latest accommodation data from HR professionals solutions provider show.
In Caracas, a lack of suitable properties and high demand driven by a booming petroleum industry led to rents continuing to rise dramatically. New York, Moscow and Tokyo complete the list of the top five most expensive locations in the world to rent a three- bedroom apartment.
Globally, rental prices for a three-bedroom apartment have fallen slightly from last year's $3,080 per month average to $3,030. With many of the world's major financial markets uneasy, particularly regarding the euro zone, many rental markets have stagnated somewhat, the report reveals.
“In many of the locations that are attracting increasing numbers of expats, such as Caracas or Mumbai, strong demand and a limited supply of suitable rental properties are pushing up rents for high end property, in some cases quite dramatically,†said Lee Quane, regional director for Asia at ECA International.
“In other locations such as Hong Kong, demand has been considerable for some time, due to limited land or a burgeoning middle class, and rental prices have more or less remained at the same high levels as this time last year,†he added.
Within Asia, the most expensive high-end rental property after Hong Kong is found in Tokyo, which is fifth globally, followed by Singapore in eighth place, Shanghai in 11th and Seoul in 14th. Karachi in Pakistan has the region’s lowest rents.
The average cost for Asia for three-bedroom rental accommodation is $3,640 per month, some 20 percent higher than the global average.
‘With more and more companies setting up operations in the region the need for the type of housing appropriate for international assignees has increased. Yet with an already limited supply of such properties in many countries here, demand significantly exceeds supply, putting upward pressure on rents,’ explained Quane.
The biggest rental price increases in the region have been in mainland China, where demand for high end accommodation is growing as companies expand their operations in the country. While a series of measures have been introduced by the Chinese government to try and curb speculation on the sales market, rents continue to increase across the country. The increase has been most pronounced in Beijing, ranked nineteenth globally, up from 26th last year, following a year on year increase of over 12 percent.
Rents in India have also increased significantly as more companies establish themselves there. Bangalore provides another example of a location that has seen an average increase of more than 12 percent since the same time last year. In Mumbai, rents have gone up seven percent on average over the year as demand from the growing number of expatriates for high end property continues to exceed supply, putting upward pressure on prices. – PropertyWire.com