Rents start to dip for luxury apartments in New York and Hong Kong
LUXURY rents in some of world’s most expensive cities have started to slip after record price increases during the pandemic.
Prime residential rents, defined as the top 5 per cent of the market, declined 0.6 per cent in the fourth quarter compared with the previous three months, according to real estate company Knight Frank, which tracks 10 global cities.
In New York, prime rents were down 2.5 per cent compared to the prior quarter, while Hong Kong dropped 2 per cent. Toronto posted the biggest decline, falling 4.8 per cent.
To be sure, luxury rents remain elevated. Overall, the global cities posted a 5.2 per cent increase in Q4 compared with a year earlier. That’s down from recent highs, but still double the long-term rate, according to Knight Frank.
New York, where the median rent for the top 5 per cent of the market is US$4,195, was roughly flat year over year. But each of the other nine cities posted an annual gain.
Prime rents in Sydney increased 18 per cent year over year, the result of limited construction in the pandemic and internal migration to the city.
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Knight Frank said that it expects slower rent growth this year as tenants reach their affordability limits and more supply comes to the market.
“Global rental markets experienced one of their strongest booms on record the past three years,” said Liam Bailey, Knight Frank’s global head of research. “Expect slower growth this year as the ability for tenants to bid higher is limited by affordability constraints.” BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Airbnb promises to combat sex work in rentals during Paris Olympics
Hong Kong property deals hit three-year high in April
More homes planned in Media Circle to support housing demand
Qatari Sheikh sells London mansion to fellow royal for £39 million
Toronto home sales fall for third month in April; prices rise
Far East Shopping Centre owners in private talks after close of S$928 million en bloc tender