Prime property rental prices in Singapore grew by 1.1 percent in 2013 according to the latest Knight Frank Prime Global Rental Index which measures the performance of rental property at the top end of the market.
Globally, prime residential rents in the 17 surveyed cities rose by 4.8 percent.
According to Knight Frank, the performance of the world’s prime rental markets is intrinsically tied to the health of each city’s respective employment market, in particular the business and financial services sector. Prime rents – which correspond to the top five percent of the market – recorded weaker growth last year than in 2012 due to marginal improvements in employment statistics.
Emerging markets outperformed the world’s top financial centres. Nairobi recorded the strongest rate of growth in annual terms in 2013. Prime rents there rose more than 25 percent in 2013 as multinationals looked to strengthen their headcount in the Kenyan capital.
Prime rents in Dubai ended the year almost 14 percent higher, while London and New York saw contrasting fortunes. Manhattan saw luxury rents increase by 3.5 percent in 2013 at a time when Wall Street bonuses rose by 15 percent year-on-year, while in comparison, the number employed in London’s financial services is estimated to have contracted slightly last year and prime rents declined by 2.3 percent accordingly.
A comparison of prime rental growth since 2008 showed that despite London’s recent weak performance, it has outperformed the remaining cities and has risen by 20.9 percent in six years.
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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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