Knight Frank has named the world's cities with the fastest growth in premium rental rates

What has happened? Rents for premium housing are still rising all over the world. According to the Knight Frank Prime Global Rental Index rose by 8.5% in the 12 months to March this year – with rents in a majority of markets hitting new records.

Cities with the strongest rental growth in luxury residential markets:

• Singapore +31.5%
• London, UK +16.9%
• Sydney, Australia +11.7%
• Toronto, Canada +10.3%
• New York, USA +10.3%
• Monaco +8.1%
• Tokyo, Japan +4.8%
• Geneva, Switzerland +3.4%

Key facts:

• Rents in Singapore have begun to rise with the opening of its borders in late 2022, allowing foreign workers to return. In addition, according to Knight Frank, successive hikes in stamp duty rates, up to 60% for some foreign buyers, have raised the cost of property purchases meaning many are now reliant on rental properties.
• Auckland (New Zealand) and Hong Kong were the only two markets in Knight Frank's report to see annual rent declines of 0.8% and 3.6%, respectively. However, rents in both cities have risen in the past three and six month periods.

Quote. “Despite a slowdown in the rate of growth, rental prices are hitting new records as workers return to city economies. With housing construction volumes remaining low due to material shortages and high build costs, rents are expected to continue to rise well above trend through 2023. The key question for investors is how governments will react to higher rental costs. For now, rent caps seem to be off the table in most markets, and policy focus is shifting to encouraging a surge in new build-to-rent accommodation” , — concluded Liam Bailey, Knight Frank’s global head of research.

Source:  Knight Frank

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