Hong Kong remains the most expensive location in the world to rent a high-end three-bedroom apartment, despite rents for high-end property falling in the city for the second consecutive year—a fact that HR is cautiously taking take into account when offering relocation packages for overseas talent.
Rents for an unfurnished three-bedroom apartment in a sought-after area of Hong Kong average US$11,440 per month—down 1% on last year's average and 3.6% on the previous year—according to ECA International. With a high population density and a consistently limited supply of property, average rents in the territory have long been significantly more expensive than other high-profile cities and are now more than 50% higher than Asia’s next most expensive location, Tokyo.
Lee Quane, Regional Director, Asia, ECA International commented, "In contrast to the large 15% increases seen a couple of years ago, rental prices in Hong Kong for properties popular with expatriates saw little movement during 2013. Many employers remain cautious about costs when markets are still so uncertain and have been gradually reducing the housing budgets they provide their mobile staff in Hong Kong.”
Supply, however, is not an issue, as Quane explained, “Government restrictions on the sales market, similar to those in mainland China, have increased the numbers of rental properties available—easing supply in a location where limited space already puts plenty of upward pressure on rents."
Within Asia, Hong Kong is followed by Tokyo, which ranks 6th globally, then Singapore (7th), Shanghai (9th) and Seoul (13th). To assist companies in formulating their accommodation policy and deciding what level of housing allowance to provide to international employees, ECA International publishes annual Accommodation Reports for more than 180 locations.
Paul Arkwright
Publisher
