February 4, 2023

Lakeview Gazette

Complete News World

Here are 5 cities in the world with the highest rent hikes, and it’s expensive even for the rich

Apartment in Manhattan The Crosby Group

Rents for private homes in the five largest cities around the world rose by 10.2% in the third quarter of 2022 relative to 2021, after restrictions imposed globally by the pandemic and restrictions between countries ended.

This was indicated by the latest Knight Frank Prime Global Rental Index, a quarterly report that tracks luxury residential rents in 10 cities.

Of the cities analyzed by the real estate consultancy, Hong Kong and Auckland were the only two to see a decline in the price of luxury rentals, Business Insider reported.

Specifically, “Hong Kong’s financial hub was hit by pandemic restrictions, while supply remained strong in Auckland’s luxury property segment, Knight Frank wrote in its report.”

The good news is that rents in other cities are steadily increasing. The rate of growth is softening: the 10.2% increase in rents is lower than the 11.9% recorded by Knight Frank in the second quarter of the year.

The first five levels are:

-NY, “Pandemic Recovery and High Rents.”

In this case, “Rental prices increased by 31.3% in the third quarter compared to the previous year. Thus, New York has topped the rankings for the third consecutive quarter.

“Although the 31.3% increase was lower than the 39% peak recorded in the second quarter, rents remain high due to a lack of inventory and continued demand,” says Kate Everett-Allen, head of international residential research at Knight Frank.

Apartment in Manhattan The Crosby Group
Apartment in Manhattan The Crosby Group

“The number of properties available for rent across Manhattan fell 5% from the quarter and fell 65% from September 2020.”

“Rents in New York have risen as the city recovers from the pandemic, which has caused some renters to worry about their leases expiring,” BI noted.

-Singapore: Prices have been boosted by strong demand since the reopening of borders.

The variation in rental prices in the third quarter, compared to a year ago: 22.9 percent.

“The opening of borders, the introduction of new visas to attract top talent from around the world, has re-created demand,” Everett-Allen said of Singapore.

“Demand has been fueled by people in need of resettlement and temporary housing, who are waiting for their homes to be completed after construction was interrupted by the pandemic.”

“Young adults, who traditionally live with family until marriage, look to rent amid surge in remote work.”

According to the official Private Residential Price Index, “house property prices in Singapore have also risen in all three quarters of this year”.

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To rein in the market amid uncertain global economic prospects, the Singapore government introduced new regulations, banning private residential property sellers from buying government-subsidized apartments for 15 months, further fueling demand for rental properties.

Rents in Singapore’s private residential market are expected to continue to rise in 2023, but at a slower rate of 13% to 16% in 2023 and 26% to 29% in 2022, driven by an increase in the number of houses to come into operation,” said real estate firm Orange Tea.

-London: Prices have risen by nearly 19% amid the inflationary crisis.

The variation in rental prices in the third quarter was 18.6 percent from a year ago.

London flats rise sharply Reuters
London flats rise sharply Reuters

“The third quarter reflected a slowdown from the summer peak in London, with prices rising 19% in the third quarter and 27% in the second,” says Knight Frank.

“Rising rents have made life miserable for Londoners, with some facing increases of up to 60%,” according to research by The Guardian.

However, “the Sri Lankan government does not support rent control because it discourages investment in the sector.”

– Toronto: “Rents are favored by strong demand as interest rates deter home buying.”

Rental prices increased by 14.5 percent in the third quarter compared to last year.

Interest rates keep Bloomberg from buying homes
Interest rates keep Bloomberg from buying homes

According to Urbanation, a Canadian real estate data analysis firm, “Toronto rents have been boosted by rising interest rates, which is discouraging potential homebuyers from purchasing,” according to an October report.

“We’re getting closer to that point where rent is becoming unaffordable for tenants,” said Shawn Hildebrand, president of the city.

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-Sydney: In the Australian city they are up almost 9% from a year ago, but the rate of increase is slowing.

Thus, “There was a variation of 8.9 percent in rental prices in the third quarter compared to the previous year.

Sydney Reuters
Sydney Reuters

“Like Canada, residential rents in Sydney are being boosted by rising interest rates and increased immigration after the reopening of borders,” says Knight Frank.

“Meanwhile, the supply of housing has not kept pace with demand, leading to bidding wars for rent,” News Corp reported.

“The state of New South Wales, where Sydney is located, is investigating the practice of rent auctions and is considering reforming the system,” according to the outlet.

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