Luxury rent prices in 17 in of the world’s leading cities
LONDON — Luxury rentals in the the world’s major financial cities showed sluggish growth in the first half of the year, according to data from Knight Frank.
The estate agent’s latest Prime Global Rental Index showed the overall cost of rents increase by 0.5% in the first quarter of 2017.
Cities in the Middle East showed the strongest rise in prime rents, up 1.7%, while Europe, racked by political uncertainty, showed the weakest growth and fell by 0.3%.
Knight Frank classifies “prime” property as the top 5% of the housing market in each city. Here is how the index breaks down.
The percentage described in the index refers to the 12-month change in rental prices.
17. Nairobi, Kenya: -6.2%. Prices in the Kenyan capital fell due to a combination of high interest rates, the downturn in the oil market, and the uncertainty of an election year.
Reuters
16. London, UK: -4.9%. Brexit-related uncertainty, stamp duty hikes, and changes to taxes for foreign buyers have hammered rent prices at the top end of the London market, although prices are set to start growing again within two years.
Reuters / Eddie Keogh
15. Geneva, Switzerland: -4.6%. Although rent prices have fallen in recent months, the cost of living remains eye-wateringly expensive in Geneva. Wages are correspondingly high in the city, which serves as a European hub of banking and finance.
14. Singapore: -2.3%. Expatriate numbers in the southeast Asian state have stabilised this year, curbing demand for property at the expensive end of the market.
Singapore mass rapid train (MRT) travels on the trackShutterstock
13. New York, USA: -1.2%. The luxury market has softened this year due to high levels of supply. The cheaper end of the market also remained static.
12. Taipei, Taiwan: 0.0%. Taiwan’s capital city flatlined in terms of price growth this year, but the city is fast-expanding. Its single skyscraper, pictured, is to be joined by several new high-rises by the end of this year.
11. Shanghai, China: 0.1%. Rent prices for prime residential properties have flatlined this year, but rent is very expensive. The average apartment in the city costs $1,250 (£960) a month to rent.
People walk along a busy street at Pudong financial district in Shanghai.Reuters/Carlos Barria
10. Hong Kong: 0.6%. It ranks as the world’s fourth-most-densely-populated sovereign state, which underpins demand for housing is very high and prices grow correspondingly.
9. Vienna, Austria: 0.8%. Rental prices in Vienna range from £2,200 to £2,900 per square metre, making Vienna an expensive city, although still far cheaper than London.
8. Tokyo, Japan: 1.6%. The capital of Japan is the seat of government and home to the Japanese emperor. A huge portion of the country’s jobs and wealth are concentrated there, meaning demand for often tiny apartments is incredibly high.
Chris McGrath / Getty
7. Tel Aviv, Israel: 1.7%. Located on the country’s Mediterranean coastline, Tel Aviv the financial and technological hub of Israel, with high average salaries, high quality of life, and high cost of living. It is the 19th most expensive city in the world to live, and rental prices in the prime market continue to grow.
REUTER/ Nir Elias
6. Beijing, China: 2.0%. The Chinese capital has the world’s least affordable rental housing, according to research by the Global Cities Business Alliance, with average prices more than 1.2 times average salaries.
Shutterstock
5. Moscow, Russia: 2.1%. Demand for prime housing in the Russian capital continues to grow, propped up by foreign tenants — many working in finance — who occupy over 50% of the high-end market.
Wikipedia / CC 3.0
4. Toronto, Canada: 2.4%. Toronto’s property market has been very turbulent this year, with listings soaring, sales dropping, and prices falling sharply. Rents at the top end of the market have been more stable, however.
Taxiarchos228 / Wikimedia Commons
3. Guangzho, China: Home to 14 million people, is China’s third largest City after Beijing and Shanghai. It is trying to establish itself as a world-leading city on a par with its two biggest rivals, and the move is paying off, with growing numbers of wealthy foreigners moving to the city.
2. Zurich, Switzerland: 5.1%. The city is a hotspot for expats, ranked second in the world when it comes to quality of living. Rental prices have been driven up by the city’s status as a major financial centre, and high average salaries.
1. Cape Town, South Africa: 5.9%. Taimur Khan, senior research analyst at Knight Frank, wrote in the report: “Growth has been underpinned by strong migration into Cape Town with potential buyers choosing to rent before committing to purchasing.”
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Original article from business insider