Property News · December 25, 2015

Luxury rents across the globe are at their lowest in 5 years


Even London has slipped from first place
Guangzhou took the top spot
Knight Frank recently released its Prime Global Rental Index for Q3 2015, revealing that luxury residential rents across the world fell by 0.9 percent in the year to September, the index’s weakest performance in five years.
The index tracks the changes in rents of the top 5 percent of the housing market in 17 global cities and ranks them accordingly.
Guangzhou leads the annual rankings this time with prime rents up 6.2 percent, knocking perennial luxury favourite London off the top spot, who only recorded rental growth of 2.4 percent over the year – its lowest rate since September 2014.
The Chinese city is not expected to hold its number one ranking for long, however, as local housing policy is certain to influence prime rental demand. Rents are expected to dip in Q4 2015 as interest rate cuts across China and the relaxation of foreign ownership rules shift demand back towards the sales market.
More: What’s causing the global prime rents index to slip?
Singapore and Beijing performed the worst of the recorded cities in Asia Pacific, finding themselves in 14th and 16th place, respectively. Moscow was placed in last position.
“Of the 17 cities tracked by the index, nine recorded flat or falling prime rents in the 12 months to September 2015,” commented Kate Everett-Allen, partner  of international residential research at Knight Frank.
“The strong link between economic performance and prime rental growth explains the low rankings of Singapore, Beijing and Moscow where economic output is slowing or tepid at best.”
via Knight Frank
Across the world as a whole, Africa recorded the strongest rise in prime rents – up 1.3 percent on average – and proved to be the only world region to record a positive growth rate.
The index peaked in Q4 2014, having increased 23 percent from the crushing lows it recorded in Q2 2009 amidst the context of the financial crisis.
 
 
 
 
 
 
Image is by wallace_Lan and used under a Creative Commons licence

Source : property-report.com
Read more…Luxury rents across the globe are at their lowest in 5 years

You may also like...