If you’re renting in Singapore and New York, bad news: You’re living in the 2 cities where prices have skyrocketed the most.

Rent in those 2 cities, located at opposite ends of the world, surged by 8.5 per cent in the first half of this year, according to a report by Savills published on Friday (Jul 29). In a survey of 30 cities, London ranked third, with prices rising 7.7 per cent, 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 per cent.

Despite rising interest rates and increased global uncertainty, prime residential rent outpaced capital value growth, increasing by an average of 3.1 per cent versus a 2.4 per cent 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.” BLOOMBERG

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