S'pore residential rentals 5th highest in Asia: study

Business Times - 17 Apr 2008

S'pore residential rentals 5th highest in Asia: study

But Republic still competitive for firms moving staff into region: ECA

By JOANNE CHIEW

SINGAPORE'S residential rental rates for a three-bedroom apartment have increased by 33 per cent over a year - from 2006 to 2007.

This makes Singapore the fifth most expensive location in terms of residential rentals in Asia and ninth globally, according to a recent survey by ECA International.

ECA International is a knowledge and solutions provider for international human resources professionals.

The annual Accommodation Survey compares rental prices in 92 locations worldwide.

A three-bedroom apartment in a popular expatriate area in Singapore costs about US$4,460 per month in 2007, up from US$3,364 the previous year.

The 33 per cent increase is also the largest in Asia.

Lee Quane, general manager of ECA International Hong Kong, attributes the steep rise to rising demand and limited supply.

'Companies (are) expanding their operations in Singapore together with government initiatives to attract skilled workers from overseas. But at the same time, the supply of property available has been limited by a number of factors such as en bloc purchases by developers, which have exacerbated the situation.'

In Hong Kong, the most expensive location in the world as ranked by the survey, rental is twice that of Singapore's for an equivalent property.

It costs 60 per cent more to rent in Tokyo, the second most expensive location in Asia, than in Singapore, which 'remains a competitive location for companies moving staff into the region', Mr Quane says.

In addition, Mr Quane explains that exchange-rate fluctuations also make a difference.

Rental prices have gone up where the local currency has strengthened against the US dollar, as in Singapore.

Six of the top 10 most expensive locations in the world are in Asia - Hong Kong (1st), Tokyo (4th), Mumbai (6th), Seoul (7th), Singapore (9th) and Ho Chi Minh City (10th). New York (3rd), Moscow (2nd), London (5th) and Caracas (8th) are the other four.

Average rental prices in Asia are around US$3,820, well above the global average of US$2,950.

Some of the survey's biggest rank movements have been experienced in the Middle East in Abu Dhabi, Sharjah and Doha, but Dubai remains the most expensive location there.

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

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