10 Mar 2014

Kuala Lumpur ranks 16th in the region and 103rd globally for rental costs

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Kuala Lumpur ranks 16th in the region and 103rd globally for rental costs

Kuala Lumpur ranks 16th in the region and 103rd globally according to ECA International, the world’s leading provider of knowledge, information and technology for the management and assignment of staff round the world. Rental costs here inflated seven per cent over the year. Meanwhile, Singapore remains the third most costly city in Asia to rent a high-end three-bedroom apartment.

Rents for an unfurnished three-bedroom apartments in sought-after areas, average US$5,630 per month (approx. S$7,200). the state is additionally stratified among the highest 10 most costly rentals in the world, occupying seventh position. this is often up from last year’s eighth position and also the ninth position it commanded the year before that.

“Ongoing demand for high-end properties saw rental costs in Singapore rise by around four per cent over the year,” said Lee Quane, Regional Director of ECA International, Asia. “This is up from the three per cent increases seen each last year and also the year before that, cementing the city’s position among a number of the foremost pricy locations for renting in the world.”

However, rental costs for a high-end three-bedroom apartment in Singapore are still around simply half that of renting constant property in Hong Kong city. Despite rents there falling for the second consecutive year, Hong Kong remains the most pricy location in the world to rent a high-end three-bedroom apartment.

Rents for an unfurnished with three-bedroom apartment during a sought-after space of Hong Kong average US$11,440 per month (approx. S$14,540) – one per cent less than last year. With a high population density and a systematically restricted offer of property, average rents within the territory have long been considerably costlier than different high-profile cities.

To assist firms in formulating their accommodation policy and deciding what level of housing allowance to produce to international staff, ECA International publishes annual Accommodation Reports for quite a 180 locations. These reports contain info on the categories of accommodation and geographical areas sometimes favoured by international assignees – generally areas around international schools, embassies or social focal points. information from these reports is additionally employed in ECA’s Accommodation Tool for setting, managing and reviewing accommodation allowances for mobile employees.

“Housing provision for expatriate employees is an upscale, necessary and infrequently affectional component of the remuneration package. A good and competitive however efficient approach will best be achieved by being consistent across locations. This will be expedited by establishing budget tables supported family size and, in some cases, seniority, all of that ought to be factored into a well-considered housing policy. Firms conjointly have to be compelled to manage the expectations of their international staff: Someone from the US, for instance, may be accustomed a a lot of spacious property than they’re probably to search out if they’re appointed to Singapore” said Quane.

Within the region, Singapore is, for the fourth year in a row, Asia’s third most costly location for renting a three-bedroom apartment – After Hong Kong and Tokyo (6th). Shanghai (9th) and Seoul (13th) complete the region’s top 5. In Bangkok, (12th within the region and 51st globally) rents rose simply two per cent.

Across the region, the typical rental worth for a high-end three-bedroom property averages US$3,600 – just 125th under ascertained last year but still over the world average of just over US$3,000.

The largest rent will increase in Asia over 12 months were ascertained in Jakarta, that is currently stratified 8th in Asia and 30th globally. The price of renting a three-bedroom apartment went up by 15 per cent, driven by Indonesia’s continuing sturdy economic performance and increasing demand from expatriates. This has place pressure on the availability of appropriate housing, pushing up costs.

China has conferred a mixed image. It will increase in rents and fairly muted over the year in Shanghai (9th globally) and Beijing (17th) because the Chinese economy slowed and neither city saw rises larger than three per cent. This contrasts with last year, once rental costs there went up by eight per cent and 12 per cent severally. Demand has withal remained sturdy within the cities of Shenzhen (110th globally) and Suzhou (122nd), wherever rents have up nine per cent on the average within the 12 months between surveys.

Karachi has all-time low rents for three-bedroom residences, not solely in the region however globally.

Image Source: Agoda.com
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email [email protected]

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