Taipei rental prices rise in global ranking

TAIPEI, Taiwan - Taipei's property rental prices are rapidly rising, ranking among the top 10 most expensive in Asia for a three-bedroom apartment, while moving from 47 to 42 in global rankings, according to a study released by ECA International yesterday, an international corporate human resources consulting company.

The consulting company has surveyed over 180 major cities throughout the world in its study to provide companies a basis to base compensation and housing stipend schemes for employees dispatched abroad.

According to the company, monthly rental fees for Taipei's real estate properties in the most coveted districts now average at around NT$96,661 (S$4144) monthly.

The company stated that as Taiwan's economy progresses toward recovery, local branches established by foreign companies are contributing to the surging demand in high-end rental housing, with average rent prices recovering from a 7-per cent tumble since the 2009 global financial crisis.

With monthly averages reaching NT$337,136 Hong Kong remains the most expensive city in which to rent a home in Asia, with Tokyo trailing behind in second place, said the company. The company, however, found that the gap in rent prices between Hong Kong and Tokyo has expanded markedly, from 6 per cent in 2009, to the current 55 per cent. In third place is Singapore, followed by Shanghai and Seoul.

Most notably, the company found that although Taipei's average rental prices are lower than averages recorded throughout Asia, the figures exceed global averages, despite a 1-per cent year-on-year decline in what landlords are asking.

Meanwhile, Jakarta posted the strongest rise in the price of rent, with a 15-per cent surge propelling the Indonesian capital's to ranking 8th in Asia, and 30th in the world, said the company, while attributing the development to the nation's rapidly growing economy. Rental prices for high-end properties in Singapore rose 4 per cent over the course of last year, ranking 7th in the world, with similar properties costing about half of what landlords ask for in Hong Kong.

The company found that rent in Karachi, Pakistan is the cheapest in Asia.