2022-10-06-莱坊-Prime_Global_Rental_Index_Q2_2022_2页_314kb

Summary of Prime Rental Growth Report

Overall Trend

Prime rental growth peaked in the first quarter of 2022, with the Prime Global Rental Index up 11.9% year-on-year. By Q2 2022, the growth rate had dipped slightly to 11.3%, but average annual growth remains in double digits. Higher mortgage rates and affordability issues in sales markets are pushing some buyers into rentals, while investors are using the rental market as an inflation hedge.

Key City Performances

• New York: Leads with 39% annual rental growth; Manhattan prime rents are 17% above pre-pandemic levels.
• London: Posted 27% annual growth, but this is beginning to slow due to easing travel restrictions and reduced expatriate demand.
• Singapore: Ranks third with 15.8% annual growth, boosted by its reopening and increased expatriate activity; the foreign workforce is high at 656,000.
• Sydney: Experiences 10.4% annual growth from returning professionals and tight stock levels.
• Toronto: Notable growth at 15.3%, attributed to returning expats.
• Hong Kong and Auckland: Lowest performers; Hong Kong saw a -2.1% growth, while Auckland had -1.6%, due to excess supply and reduced demand from travel constraints.

Factors Influencing the Market

Post-pandemic recovery is influenced by easing border closures, strengthening demand from expatriates and workers relocating, and supply challenges such as construction delays. Investors are attracted to rentals for inflation protection, as seen in historical periods of high inflation.