With more and more companies expanding their operations in Asia, property prices are on the rise. A new study conducted by human resources consulting firm ECA International has found that Hong Kong is the costliest city in terms of luxury homes. A three-bedroom apartment in the most posh neighborhoods of Hong Kong rents for over $11,800 per month. That works out to over $141,600 annually – a sum that represents a 15 percent rise over prices recorded in 2011. The average Hong Kong resident will have to earn five times their current salary to afford housing at these rates.
So who is renting these luxury homes? According to ECA International, increasing numbers of Korean, Japanese and mainland Chinese firms are slowly making inroads into Hong Kong, sending not just senior expatriate managers but also younger and more junior expats. The booming IPO market is drawing a range of companies, not just luxury brands from the West. The limited residential area also adds to the high rental prices, what with locals and expats seeking out luxury homes to suit their budgets.
Tokyo ranks second to Hong Kong in terms of luxury homes rentals, with a per month rate that is $2,300 less than that of Hong Kong. However, when it comes to two-bedroom apartments in more budget areas, Tokyo tops the list and Hong Kong moves to fifth place. The cheapest luxury three-bedroom homes are available in Karachi, Pakistan for about $360 per month.