Singapore snags 3rd spot in Asia's costliest apartments list

Monthly rents for 3-bedroom units hit $7,200.

According to ECA International, Singapore remains the 3rd most expensive city in Asia to rent a high-end three-bedroom apartment according to ECA International, the world's leading provider of knowledge, information and technology for the management and assignment of employees around the world.

Rents for an unfurnished three-bedroom apartment in sought-after areas, average US$5,630 per month (approx. S$7,200). The nation is also ranked among the top 10 most expensive rentals in the world, occupying 7th position. This is up from last year’s 8th position and the 9th position it commanded the year before that.

“Ongoing demand for high-end properties saw rental prices in Singapore rise by around 4 per cent over the year,” said Lee Quane, Regional Director of ECA International, Asia. “This is up from the 3 per cent increases seen both last year and the year before that, cementing the city’s position among some of the most expensive locations for renting in the world.”

However, rental prices for a high-end three-bedroom apartment in Singapore are still around just half that of renting an equivalent property in Hong Kong. Despite rents there falling for the second consecutive year, Hong Kong remains the most expensive location in the world to rent a high-end three-bedroom apartment.

Rents for an unfurnished three-bedroom apartment in a sought-after area of Hong Kong average US$11,440 per month (approx. S$14,540) – 1 per cent less than last year and 3.5 per cent less than the previous year. With a high population density and a consistently limited supply of property, average rents in the territory have long been significantly more expensive than other high-profile cities.

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 for more than 180 locations. 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.

"Housing provision for expatriate staff is an expensive, important and often emotive element of the overall remuneration package. A fair and competitive yet cost-effective approach can best be achieved by being consistent across locations. This can be facilitated by establishing budget tables based on family size and, in some cases, seniority, all of which should be factored into a well-considered housing policy. Companies also need to manage the expectations of their global staff: someone from the United States, for example, may well be used to a more spacious property than they are likely to find if they are assigned to Singapore” said Quane.