Mixed bag for Asia in new Prime Global Rental Index
Mixed bag for Asia in new Prime Global Rental Index
Knight Frank has released their Prime Global Rental Index for Q1 2016
The index charts any changes within the global luxury residential rent prices over the past 12 months.
As the report shows, many major cities in Asia have seen a drop, with Guangzhou bucking the trend and showing 5.3% growth, coming second globally to Toronto, which has seen unprecedented growth by increasing 8.9% in the first quarter.
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Hong Kong has fallen the most within Asia, with a decline of -5.2%. In spite of this, it still remains the most expensive city to live in Asia according to Mercer’s annual Cost of Living Survey.
Commenting on the report, Knight Frank’s Head of Research for Asia Pacific Nicholas Holt says:
“Real estate markets in Asia have been sensitive to the wider macro-economic environment in 2016, as demonstrated by the prime residential rental performance in the seven major Asian cities tracked.
“Singapore and Hong Kong, the two cities with significant export exposure have seen rents soften, while mainland Chinese cities have seen more varied performance, with Shanghai still seeing rental growth on the back of a robust local economy.
“Looking forward, the political uncertainty in Europe and the US will likely weigh on the region for the second half of the year, depressing rental growth prospects.”
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Source: Property Report