If a company posting to Asia is on the cards, be forewarned, rental accommodation in the region’s major cities is among the world’s most expensive.
Despite a recent softening in rental prices, Hong Kong remains the priciest location to lease a three-bedroom apartment globally, according to a ranking published by human resources consultancy ECA International on Thursday.
An unfurnished three-bedroom apartment in a sought-after area averages US$11,440 per month – a one percent decline from last year but double that of Singapore where an equivalent property would cost around $5,630 per month.
With a high population density and a constrained property supply, average rents in the territory have long been above other high-profile cities.
After Hong Kong, Moscow, Caracas, New York and London ranked 2nd through 5th, respectively.
The accommodation survey by ECA looks at 180 locations across the world common for international assignees
Asian cities dominate top 10
Four Asian cities occupied the top ten most expensive locations, with Tokyo, Singapore and Shanghai ranking 7th, 8th and 9th, respectively.
In Tokyo, rents have increased by approximately 6 percent over the last twelve months when measured in local currency, as confidence returned to the housing market alongside a turnaround in the economy.
However, a weaker yen has meant that the cost of renting a three-bedroom high-end apartment actually fell by about 15 percent when converted into U.S. dollars, ECA said.
Across the Asian region, the average rental price for a high-end three-bedroom property is $3,600 – above the global average of just over $3,000.
Rest of the world
Moscow is Europe’s priciest city for rental property and has the second highest rents globally, driven by tight supply. Within Europe, the Russian capital is followed by London, Zurich (12th) and Geneva (14th).
Meanwhile, Venezuela’s capital Caracas has the most expensive rental property in the Americas and the third highest globally.
Rents in the local currency have gone up almost 50 percent in the past year as new construction projects have not kept up with demand, according to ECA. However, the bolivar’s depreciation means that this increase falls to just 1 per cent in U.S. dollar terms.
Finally, of the African locations surveyed, Lagos has the most expensive rental properties – despite rent falling approximately 6 percent due to a better supply of residential properties on the market.
Source : Ansuya Harjani | Writer, CNBC Asia