Prime property rents around the world rose by 6.4 percent in the year to September, the index’s strongest annual performance since Q2 2008 in Knight Frank’s survey of the top 5 percent of the residential property market is 17 global cities.
Prime property rents in Singapore were ranked in 12th place of the 17 cities with a recorded year-on-year increase of 2.4 percent as at the end of September. London, surprisingly, was bottom and recorded a 2.5 percent decline over the same 12-month period.
The latest results from Knight Frank showed Nairobi topped the annual rankings for the second consecutive quarter. Prime rents in the Kenyan capital rose by 25.8 percent in the year to September 2013. Recent security concerns mean demand for secure accommodation – be it apartments or gated compounds – is strong and supply is limited.
New York rose up the rankings in the third quarter as employment levels increased, boosting tenant demand. Prime rents rose by 8.2 percent over the 12 month period.
Of the Chinese cities tracked, Beijing recorded the strongest annual increase in the year to September, with rents ending the period 8.1 percent higher.
Prime residential rents in Hong Kong declined by 0.5 percent and are forecast to slip a further 5-10 percent in 2014 as supply increases due to the numerous cooling measures suppressing the sales sector.
Read the full Knight Frank Prime Property Index report here:
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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