KUALA LUMPUR (Jan 24): Hong Kong remains the most expensive location in Asia for high-end rental accommodation since 2013, according to ECA International’s Accommodation Survey.
ECA International has been conducting research into accommodation for more than 20 years. The survey compares rental accommodation commonly leased by expatriate staff in more than 230 locations worldwide.
According its latest report, rents for an unfurnished three-bedroom apartment across popular expatriate neighbourhoods in Hong Kong average US$10,189 (RM45,185) per month.
“Over the past five years, Hong Kong has continued to top our regional rankings. With a high population density and a consistently limited supply of property, average rents in the territory have long been more expensive than in other high-profile cities,” said ECA International Asia reginal director Lee Quane in a statement.
Rents in Hong Kong are more than 14% higher than in Asia’s next-most expensive location, Tokyo.
Five years ago, rents in Hong Kong were around 20% higher than in the Japanese capital but the gap has decreased significantly since then.
Tokyo is followed by Seoul, Yokohama, Shanghai and Beijing in the regional rankings.
Meanwhile, Singapore ranked the 7th most expensive location in Asia for high-end rental accommodation this year, falling from 4th last year.
Rents for an unfurnished three-bedroom apartment across popular expatriate neighbourhoods in Singapore average US$4,535 per month. Although, since 2012, average rents in Singapore have significantly decreased.
“Property prices rise and fall based on the laws of supply and demand. When demand decreases, prices will fall. When the number of available properties increases, prices also usually drop. Both factors have significantly influenced rental prices in Singapore over the past five years,” said Quane.
Meanwhile, the 3rd most expensive high-end rental accommodation in Asia a year ago, Shanghai, has moved down two places to 5th. This is due to the large rental price rises in Seoul (3rd) and Yokohama (4th). Within China, Shanghai is just ahead of Beijing (6th regionally), Dalian (19th) and Guangzhou (20th).
The average rent of ranked locations in China has generally risen over the past year.
Across the region, the average rental price for a three-bedroom property averages US$3,124. It is just 1% higher than observed last year.
The largest rent increases in Asia over 12 months were observed in Tokyo, although this was not enough to overtake Hong Kong. The cost of renting a three-bedroom apartment increased, driven by Japan’s continued strong economic performance and increasing demand from expatriates. This has put pressure on the supply of suitable housing, pushing up prices.
A similar trend was also observed in Indian cities, with average rental costs increasing in Mumbai (8th regionally), New Delhi (16th) and Kolkata (21st). India’s standing in the global marketplace continues to strengthen, where demand for high-quality accommodation in major cities and a persistent lack of supply have kept rents high.