**Global Luxury Rental Market Shows Varied Performance in 15 Major Cities**
A recent report released by real estate consultant Knight Frank revealed that the average luxury rental prices in 15 major cities around the world increased by 3.7% annually in the first quarter of this year. This growth rate is lower than the 5.3% recorded in the fourth quarter of 2023, marking the slowest pace of increase since the second quarter of 2021. Notably, Hong Kong saw a slight decrease of 0.2% in luxury rental prices, ranking as the third lowest performer among the 15 cities.
The report indicated that 80% of the cities in the index experienced price hikes, with Sydney, Australia leading the pack with a substantial annual increase of 17.3% in luxury rental prices. Auckland, New Zealand, and London, United Kingdom followed with growth rates of 5.6%. On the other hand, Singapore recorded the poorest performance with a 2.9% annual decrease in luxury rental prices.
Wang Zhaoqi, Head of Research and Consultancy for Knight Frank Greater China, attributed the rising demand for luxury rentals in Hong Kong to the influx of high-income expatriates. Many of these expats prefer to rent rather than buy property upon their initial arrival in Hong Kong due to unfamiliarity with the local geography. Coupled with high interest rates, it is expected that luxury rental prices in Hong Kong will increase by 3 to 5% this year.
Despite the current trends, Liam Bailey, Global Head of Research at Knight Frank, anticipates a recovery in luxury rental price growth later this year.