Hong Kong still most expensive Asian destination for expat rentals

A recent survey has confirmed Hong Kong as the most expensive destination for expat rentals.

Asia has been a prime relocation destination for decades, with Hong Kong a favourite with financial professionals looking to improve their career prospects and grab a far higher salary than in their home countries. However, the city’s top dollar rental charges are taking the gloss off big-buck wages as its rental accommodation charges are the highest on the continent.

Hong Kong’s high density of population and limited supply of suitable real estate is one reason for the soaring rental prices in sought-after districts. For example, monthly rentals of a mid-market, unfurnished three-bedroomed apartment aimed at international executives averages around $10,461. In comparison, a similar high-end property in Tokyo rents for $8,000 a month, even taking into account the Japanese capital’s recent rental price increase of around four per cent.

Shanghai, now China’s most expensive location for expats, scored in the survey as the third most pricey location for high-end rental charges at $5,000 a month, closely followed by Beijing, Mumbai and Seoul. Singapore slipped by one place to eighth due to shrinking inbound expat arrivals and unfavourable business conditions such as slower economic growth. Manila and Osaka also made the top ten, but rental charges in Yangon, Ho Chi Minh City and Jakarta actually fell.

For expats keen enough on staying in Hong Kong to consider purchasing an apartment, now would seem to be the time as property experts believe skyrocketing prices are here to stay, especially for smaller units. A few real estate agencies are reporting the government may have a plan to bring in new regulations and reforms in order to cool the market, thus bursting the property bubble and managing asset risks. Whether government intervention will result in lower rental charges for expat-aimed apartments is yet to be seen.