Wednesday, April 16, 2008

Hong Kong has world’s highest apartment rents: survey

Hong Kong has the world’s priciest apartment rents, with the lease for a three-bedroom unit costing more than $9,700 on average a month, a survey released Wednesday said.

Singapore, which positions itself as a Southeast Asian business hub, saw Asia’s biggest year-on-year rental increase of more than 30% last year, the survey by human resources firm ECA International showed.
The survey covered 2007 and is based on lease prices for a three-bedroom apartment in popular expatriate areas, ECA International said.
Asian cities, led by Hong Kong, accounted for six out of the top 10 locations that have the world’s most expensive rentals for three-bedroom apartments, it said.
Other Asian cities in the top 10 global list are Mumbai which ranked sixth, Seoul seventh, Singapore ninth, and Ho Chi Minh City 10th.
Monthly rentals in Asia were on average $3,820, well above the global level of $2,950, said ECA International.
Globally, Moscow ranked second, followed by New York City, Tokyo, and London in fifth spot, the survey states.
“A robust economy and increased demand for high-end accommodation have been instrumental in driving rental prices up,” said Lee Quane, ECA International’s general manager in Hong Kong.
“Particularly in the financial services industry, people are moving into Hong Kong so, in spite of its relative high cost, it still remains one of the prime locations for foreign companies to establish themselves,” said Quane.
A three-bedroom apartment in Singapore rented for $4,460 a month on average last year, compared with $3,364 in 2006, ECA said.
Mumbai, India’s financial hub, had the region’s second-highest rental rise of 21 percent. A three-bedroom apartment there cost $5,991 to lease, ECA said.
For other major Asian cities, Jakarta ranked 10th in Asia, Manila was 14th, Bangkok came in 15th followed by Kuala Lumpur in 16th spot.
According to the survey, Karachi is the cheapest city in the world to rent a three-bedroom apartment.
ECA says its annual survey of rentals compares lease prices in 92 global cities.

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