If you are renting in Singapore and New York, bad news: you are living in the two cities where prices have skyrocketed the most.
Rent in those two cities, located at opposite ends of the world, surged by 8.5% in the first half of this year, according to a report by Savills Plc published on Friday. In a survey of 30 cities, London ranked third, with prices rising 7.7%, followed by Lisbon and Miami.
At the bottom of the pile is the world’s most unaffordable property market -- Hong Kong, where rents declined by 1.3%.
Visitors gather in front of the Marina Bay Sands hotel and resorts building in Singapore on July 27, 2022. (Photo: AFP)
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Despite rising interest rates and increased global uncertainty, prime residential rent outpaced capital value growth, increasing by an average of 3.1% versus a 2.4% in capital value, the report said. This is due to a confluence of factors that include people returning to urban cities after lockdown lifts, and the return of international travel.
“A lack of inventory will continue to fuel growth in the near term, especially for the type of residences prime tenants are demanding - centrally located, quality units with larger floor plates,” said Paul Tostevin, head of Savills world research. “For these properties, the Covid lockdown rental deal is definitely a thing of the past.”
The city of Shenzhen, China’s tech hub, also saw a decline in prices by 0.7% due to Covid-19 restrictions.
A general view shows the city skyline during sunset in Shenzhen in China’s southern Guangdong province on July 10, 2022. (Photo: AFP)