Report: Beijing sees world’s third-largest global high-end residential rent increases

Beijing saw the third-greatest rise in prime residential rents during 2012 – a reflection, no doubt, of China’s continuing economic growth – according to the latest edition of Knight Frank’s Prime Global Rental Index, which compares the performance of high-end lettings markets across key global cities.

Beijing saw the third-greatest rise in prime residential rents during 2012 – a reflection, no doubt, of China’s continuing economic growth – according to the latest edition of Knight Frank’s Prime Global Rental Index, which compares the performance of high-end lettings markets across key global cities.The index rose by 1.6 per cent in the final quarter of 2012 and by 5.1 per cent over the course of the year, as a tight mortgage market, with limited supply in established markets and rising property prices in emerging ones, forced many would-be purchasers into rented accommodation. It now stands 20 per cent above its post-financial crisis low in the second quarter of 2009.Nairobi saw the largest increase in prime rents, which rose by 17.9 per cent, and Dubai the second-largest, at 14.3 per cent. Beijing, at 8.5 per cent, was next.In Europe, the best performer was Zurich, with growth of 7.9 per cent.Since the second quarter of 2009, Hong Kong has seen the highest increase in prime rents (up 42.2 per cent) and Moscow the lowest (up 3.3 per cent).Of the cities tracked, only London recorded a fall in prime rents, which were down by 3.2 per cent in the 12 months to December 2012.Knight Frank’s Kate Everett-Allen says, “The challenging business environment is affecting housing allowances for expatriates around the world, not just in Europe and North America. Consequently, corporate tenants are opting for smaller units, given budget constraints.“Although the emerging markets of Nairobi, Dubai and Beijing topped the rental rankings in 2012, we expect prime rents in the more established markets of London, New York and Zurich will see renewed growth in 2013, as supply constraints and the tight mortgage market prop up tenant demand.”In the Spring 2013 issue of Re:locate magazine, we look at the huge opportunities emerging markets, including China, can offer to enterprising organisations, and the challenges these markets present to HR, their relocation supplier partners, and globally mobile employees. Our coverage of the global serviced apartments scene includes Asia Pacific.In our Summer 2013 issue, (out June), we’ll analyse key trends influencing relocation in, and to, Asia Pacific, and explore the latest APAC relocation hotspots.

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