Hong Kong's high-end rental accommodation the priciest in Asia

Rents for an unfurnished three-bedroom apartment for expats average US$10,189 per month.

Hong Kong remains the most expensive location in Asia for high-end rental accommodation. This was one of the findings of the latest Accommodation Survey published by ECA International.

ECA International has been conducting research into accommodation for more than 20 years to help companies provide the right housing options as part of the overall compensation package for mobile employees. The survey compares rental accommodation commonly leased by expatriate staff in over 230 locations worldwide.

“Over the past five years, Hong Kong has continued to top our regional rankings. With a high population density and a consistently limited supply of property, average rents in the territory have long been more expensive than in other high-profile cities,” said Lee Quane, Regional Director – Asia, ECA International.

Rents for an unfurnished three-bedroom apartment across popular expatriate neighbourhoods in Hong Kong average US$10,189 per month.

“Despite high rental prices in Hong Kong, average rental costs here have fallen by around 13 per cent since 2012. Over this period, the residential rental market has been facing downward pressure as many homeowners are leasing out their properties rather than selling them. On the demand side, factors such as companies reducing the levels of assistance provided to assignees and the conversion of assignees to permanent terms, where company assistance in meeting housing costs is reduced or removed, has also meant that landlords with properties in the areas popular with expatriates are having to reconsider the rents they demand,” said Quane.

To assist companies in formulating their accommodation policy and deciding what level of housing allowance to provide to international employees, ECA International publishes annual Accommodation Reports. These reports contain information on the types of accommodation and geographical areas usually favoured by international assignees – typically areas near to international schools, embassies or social focal points. Data from these reports is also used in ECA's Accommodation Tool for setting, managing and reviewing accommodation allowances for mobile staff.

In US dollar terms, rents in the city are more than 14 per cent higher than in Asia's next-most expensive location, Tokyo. Five years ago, rents in Hong Kong were around 20 per cent higher than in the Japanese capital but the gap has decreased significantly since then. Tokyo is followed by Seoul, Yokohama, Shanghai and Beijing in the regional rankings.

Singapore comes in at 7th position in the regional rankings this year, falling from 4th last year.

“Expatriate numbers in Singapore have stabilised recently, which has curbed demand for rental property in popular expatriate neighbourhoods. This, combined with an increased supply of property in the market, has caused landlords to respond by reducing rental prices. Since 2012, average rents in Singapore have therefore significantly decreased,” said Quane.