Housing Matters Market Snapshot Asia Pacific & Middle East - Sirva
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Housing
Matters
Market Snapshot
Asia Pacific & Middle East
The Current Landscape
The global economy grew just 2.4% in 2019, the slowest rate since the global economic crisis more than a
decade ago. The World Bank expects a modest recovery with a global growth forecast of 2.5% in 2020.
The world’s two largest economies, the United States and China, are still locked in a trade war, without
significant progress despite continuous negotiations. Prolonged civil unrest in Hong Kong has deeply impacted
its economy, sending it into a recession. The COVID-19 coronavirus outbreak is also expected to greatly impact
China and the region in 2020, with several Asian governments introducing significant measures to control the
disease and protect their economies.
Expatriate movements in the second half of 2019 have generally followed historical trends. Rents for
residential properties have remained mostly stable, with the exception of decreases in Hong Kong and the
United Arab Emirates.
TABLE OF CONTENTS
ASIA Beijing 01
Shanghai 04
Hong Kong 07
India 10
Kuala Lumpur 16
Singapore 19
Thailand 22
Tokyo 26
AUSTRALIA 29
MIDDLE EAST Abu Dhabi 34
Dubai 37
Bahrain 40
Riyadh 43
Beijing Market Snapshot Housing Matters | March 2020 Issue 1
Rents Remained Stable in H2
Beijing offers a wide variety of housing options the total supply of serviced apartments stood at
for expatriates, falling in broad categories such as 8,420 units, with an occupancy rate of 89.4%.
serviced apartments, high-end apartments, and
houses. As with many other major cities, expatriates Multi-national companies (MNCs) are observed
factor location, lifestyle needs, and budget when to be deploying expatriates on more short-term
choosing their accommodations. assignments than long-term deployments. Most
of the new arrivals tend to be singles or couples
In general, singles or couples prefer living in without accompanying children, in a bid to cut
apartments in close proximity to their offices. Those costs. The MNCs are also opting to provide housing
with families favour the suburbs, which are generally allowances to their expatriate employees to manage
located near international schools. Regardless of their housing needs, rather than to sign corporate
family size, many expatriates opt to live in gated housing leases for them.
housing compounds. Besides better security, there
are more English-speaking service staff on these The coronavirus (COVID-2019) outbreak definitely
estates, and communal facilities such as gyms and had an impact on expatriate movements. In general,
swimming pools are available. there was no mass exodus for those who are
currently stationed in Beijing. However, expatriates
Expatriates prefer to stay in the Central Business who departed the country before the Chinese New
District (CBD) due to its proximity to their offices, but Year break will likely be delaying their return. Those
rents are high, and the only viable options are high- who were scheduled to be deployed to Beijing
end serviced apartments. Other popular locations are also likely to delay their arrival, based on their
away from the city centre include the Chaoyang Park company policy and assessment of the situation.
District, Sanlitun, and Shunyi.
The International Monetary Fund (IMF) has slashed
After a quiet start to the second half of 2019 in the its 2020 growth outlook for China to below 5.6
serviced apartment market, the Orientino Executive per cent due to the widespread impacts of the
Apartments in the CBD added 43 units to the total coronavirus epidemic globally.2
supply in Q4 2019 as part of its phased release. They
will release the remainder of their 182 units in 1H
2020, bringing its total contribution to 327 units,
according to Savills.1
China World Apartments has completed its
refurbishment project and is expected to add 407
units to the market in 1H 2020. At the end of 2019,
1 Savills, Market in Minutes: Beijing Residential Leasing, 2020: http://pdf.savills.asia/asia-pacific-research/china-research/beijing-research/beijing-
residential/19q4-bj-resi-leasing-en.pdf
2 Zhou, Cissy. "Coronavirus: IMF again cuts 2020 China growth forecast as Covid-19 shakes the global economy." South China Morning Post. March 5, 2020.
https://www.scmp.com/news/china/money-wealth/article/3065082/coronavirus-imf-again-cuts-2020-china-growth-forecast-covid
2 Housing Matters | March 2020 IssueBeijing
Market Table
BEIJING - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Standard Local Plus Standard Premium Luxury
Locations Shuang Jing, CBD, Sanlitun and Chaoyang Park are popular expatriate residential areas
Comes with a lobby and Comes with a lobby and
Comes with a lobby, may
receptionist, gym, swimming receptionist, gym, swimming
Fair property management have a gym, 30% expatriates
Description service and good property
pool, 50% expatriates pool, 60% expatriates
and excellent property and excellent property
management service
management service management service
Rent From Rent From Rent From Rent From Rent From Rent From Rent From Rent From
Property Profile (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month)
Typical Size ,500 sqft 850 sqft ,500 sqft 850 sqft ,500 sqft 850 sqft ,500 sqft 850 sqft
H2 2019 12,000 17,000 17,000 20,000 26,000 29,000 34,000 48,000
1 Bed Apt
Last H 12,000 17,000 17,000 20,000 26,000 29,000 35,000 48,000
Last Yr 12,000 18,000 17,000 20,000 26,000 29,000 35,000 46,000
Typical Size 850 sqft 1,200 sqft 850 sqft 1,200 sqft 850 sqft 1,600 sqft 850 sqft 1,200 sqft
H2 2019 18,000 21,000 25,000 30,000 29,000 41,000 45,000 60,000
2 Bed Apt
Last H 18,000 21,000 25,000 30,000 29,000 41,000 45,000 60,000
Last Yr 18,000 21,000 25,000 30,000 29,000 41,000 45,000 60,000
Typical Size 1,400 sqft 2,000 sqft 1,400 sqft 2,000 sqft 1,400 sqft 2,000 sqft 1,400 sqft 2,000 sqft
H2 2019 23,000 29,000 29,000 37,000 39,000 49,000 49,000 85,000
3 Bed Apt
Last H 23,000 29,000 29,000 37,000 39,000 49,000 49,000 85,000
Last Yr 23,000 29,000 29,000 37,000 39,000 49,000 49,000 85,000
Typical Size 2,000 sqft 3,000 sqft 2,000 sqft 3,000 sqft 2,000 sqft 3,000 sqft 2,000 sqft 3,000 sqft
H2 2019 28,000 37,000 36,000 41,000 47,000 60,000 65,000 90,000
4 Bed Apt
Last H 28,000 37,000 36,000 41,000 47,000 60,000 65,000 90,000
Last Yr 28,000 37,000 36,000 41,000 47,000 60,000 65,000 90,000
Typical Size 2,500 sqft 4,000 sqft 2,500 sqft 4,000 sqft 2,500 sqft 4,000 sqft 2,500 sqft 4,000 sqft
H2 2019 34,000 40,000 390,000 50,000 46,000 62,000 67,000 90,000
4/5 Bed
House Last H 34,000 40,000 390,000 50,000 46,000 62,000 67,000 90,000
Last Yr 34,000 40,000 390,000 50,000 46,000 62,000 67,000 90,000
BEIJING RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 12 months
Notice period 2 months
Typical deposit 2 months
Housing Matters | March 2020 Issue 3Shanghai
Market Snapshot
4 Housing Matters | March 2020 IssueStable Rents Continue in H2
Expatriate-friendly housing falls into three main Cost remains a major consideration for MNCs, so
categories in Shanghai, with serviced apartments most new assignees are often singles or couples
being the most expensive and luxurious, followed by without children. Housing allowances have also
common-hold flats and villas. been observed to be reduced, and many expatriates
are being brought in on short-term contracts.
The well-connected downtown districts of Puxi
and Pudong are the most popular areas among In general, rents in Shanghai for expatriate housing
expatriates, and are also the most expensive to live in. were relatively stable throughout 2H 2019. According
In Lujiazui, Shanghai’s main finance and commercial to Savills, rents for serviced apartments fell 0.7% in
area, there are several well-managed residential 2019, while vacancies stood at 17.3%.1
compounds for apartments. Singles or couples
seeking accommodation near their workplaces in There were also several launches in H2 2019,
the Central Business District, especially those in the including the L Apartment 46 in Qiantan with 184
financial services sector, may opt to live here. common-hold apartments and Citadines Xujiahui on
West Longhua Road with 152 serviced apartments.2
For expatriate families with school-age children, Lower-priced serviced apartments were also
its proximity to the international schools is a big launched, with Le Ville Residence in Jing’an offering
draw, along with other family-friendly amenities 217 units ranging from studios to two-bedroom
such as parks and recreational spaces. The Jinqiao apartments and rents starting from around RMB
area is well-planned and offers a modern suburban 13,000 per month. More than half its units have been
feel. Kangqiao is another alternative, and while it snapped up within three months.
may be perceived as more rural and less organised
when compared to Jinqiao, it remains popular with The impact from the coronavirus (COVID-2019)
expatriate families. outbreak is likely to subside in the first half of 2020.
While a mass exodus of expatriates has not occurred,
Standard housing leases in Shanghai run for two those who left for the holidays before the Chinese
years, with the terms within the first year of contract New Year break have delayed their returns. The
being rigidly upheld by landlords. Penalties for early arrival of new expatriates is likely to be delayed as
termination during the first year can be as high as well, in alignment with their companies’ policies.
two month’s rent. The second year is typically more
flexible, although a two-month written notice period The residential property market outlook remains
needs to be served for termination. Leases of less stable and rents should remain relatively unchanged
than a year are uncommon and typically attract in the first half of 2020.
higher rents.
Multinational companies (MNCs) are still conservative
regarding deploying expatriates to Shanghai, as well
as the rest of China, preferring equally skilled and
experienced locals to fill job vacancies. However,
several industries have opened up, including the
financial services and automotive sector.
1 Savills, Reimagining Real Estate 2020, 2020: https://pdf.savills.asia/selected-international-research/outlook-en-final.pdf
2 Savills, Shanghai Residential Leasing, 2019: http://pdf.savills.asia/asia-pacific-research/china-research/shanghai-research/shanghai-residential/19q3-sh-resi-
l-en-final.pdf
Housing Matters | March 2020 Issue 5Shanghai
Market Table
SHANGHAI - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Standard Local Plus Standard Premium Luxury
Lu Jiazui, Jing'an, Xujiahui, Jinqiao, Xin Tiandi, Former
Lu Jiazui, Jinqiao, Xin Tiandi,
Jing'an, Lianyang, Xin Tiandi, Hongqiao, Former French French Concession,
Locations Qingpu, Gubei Concession, Qingpu, Hongqiao, Central Park,
Former French Concession,
Nanjin Rd West
Central Park Jinqiao
Rent From Rent From Rent From Rent From Rent From Rent From Rent From Rent From
Property Profile (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month) (RMB/Month)
Typical Size 700 sqft 850 sqft 700 sqft 850 sqft 700 sqft 850 sqft 700 sqft 850 sqft
H2 2019 12,000 15,000 16,000 20,000 23,000 28,000 31,000 37,000
1 Bed Apt
Last H 12,000 15,000 16,000 19,500 23,000 28,000 31,000 37,000
Last Yr 12,000 15,000 15,500 19,000 24,000 28,000 31,000 37,000
Typical Size 850 sqft 1,200 sqft 850 sqft 1,200 sqft 850 sqft 1,200 sqft 850 sqft 1,200 sqft
H2 2019 16,000 18,000 19,000 26,000 31,000 33,500 38,000 52,000
2 Bed Apt
Last H 16,000 18,000 19,000 26,000 30,000 33,000 38,000 52,000
Last Yr 16,000 18,000 18,500 25,500 30,000 32,500 41,000 52,000
Typical Size 1,300 sqft 1,800 sqft 1,300 sqft 1,800 sqft 1,300 sqft 1,800 sqft 1,300 sqft 1,800 sqft
H2 2019 22,000 25,000 26,000 34,000 38,000 43,000 47,000 70,000
3 Bed Apt
Last H 21,000 25,000 26,000 34,000 36,000 42,000 47,000 70,000
Last Yr 21,000 25,000 26,000 33,500 36,000 41,500 47,000 70,000
Typical Size 1,800 sqft 3,000 sqft 1,800 sqft 3,000 sqft 1,800 sqft 3,000 sqft 1,800 sqft 3,000 sqft
H2 2019 28,000 35,000 36,000 44,000 43,000 54,000 58,000 78,000
4 Bed Apt
Last H 28,000 34,000 35,000 43,000 43,000 54,000 58,000 78,000
Last Yr 28,000 34,000 34,500 42,500 43,000 53,500 58,000 78,000
Typical Size 3,000 sqft 5,000 sqft 3,000 sqft 5,000 sqft 3,000 sqft 5,000 sqft 3,000 sqft 5,000 sqft
H2 2019 37,000 45,000 44,000 55,000 65,000 72,000 72,000 90,000
4/5 Bed
House Last H 35,000 44,000 43,000 54,000 63,000 71,000 72,000 90,000
Last Yr 35,000 44,000 43,000 53,500 63,000 71,000 72,000 90,000
SHANGHAI RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 12 months
Notice period 2 months
Typical deposit 2 months
6 Housing Matters | March 2020 IssueHong Kong
Market Snapshot
Housing Matters | March 2020 Issue 7Prolonged Civil Unrest Takes its Toll on the
Property Market
Hong Kong’s residential property market, which According to real estate agency, Savills, rents for its
has set record after record in recent years, is now luxury apartments fell as much as 6% year-on-year.
in decline, owing to months of civil unrest and Serviced apartments fared worse, with drops of more
the ongoing coronavirus (COVID-2019) outbreak. than 12% on the previous year.2
However, home prices and rents are by no means
Pro-democracy protests, which initially started as an
cheap in absolute terms and are still amongst the
opposition to the proposed extradition treaty with
highest in the world.
mainland China, have grown increasingly larger and
The most expensive properties are found on Hong more violent, especially towards the end of 2019.3
Kong Island, with homes in areas such as The Peak, However, a mass exodus of expatriates has not been
Mid-Levels, and Southside commanding the highest observed yet. Decisions to leave may occur towards
prices. Across the harbour, some parts of Kowloon the end of the academic year in the first half of 2020.
and Tsim Sha Tsui are also known to be costly. Further
The economic situation is bleak, with the
away from these centrally located districts, rents are
International Monetary Fund (IMF) forecasting the
more affordable, such as in the New Territories and
gross domestic product (GDP) to contract by 1.9% in
Outlying Islands. Kowloon East and its surrounding
2019, worse than the government’s earlier forecast of
areas such as Tseung Kwan O and Kai Tak are
a 1.3% decline.4 Ongoing social unrest, trade tensions
becoming popular areas amongst the younger crowd,
between the United States and China, declining
with some offices moving into the area.
private consumption, and weak exports have all led
Expatriates generally have plenty of options to choose to the recession. The IMF does expect things to turn
from, based on their budgets and general flexibility. around in 2020 though, with a forecast of 0.2% GDP
Rents do vary significantly due to several factors, such growth.
as location, size, and the availability of amenities.
As far as the property market goes, it is expected
Before committing to a lease agreement, expatriates
to be weak in the first half of 2020, with rents
should be aware of their rights as tenants, included
potentially taking another hit if the domestic and
fees and services, utilities arrangements, and the
global situation does not improve. According to
average rent of homes in the area.
Colliers, rental value across Hong Kong could
Rents in Hong Kong fell across the board in H2 decrease by 3% in 2020.5
2019; the city has essentially become a tenant-
dominated market with landlords eager to accept
any reasonable offer from prospective tenants.1
1 Choi, Martin. “Hong Kong Becomes a Tenant’s Market as Coronavirus Puts Home Rentals on Slippery Slope.” South China Morning Post. 11 February 2020.
https://www.scmp.com/business/article/3049912/hong-kong-becomes-tenants-market-coronavirus-puts-home-rentals-slippery
2 Savills, Hong Kong Residential Leasing, 2020: https://www.savills.com.hk/research_articles/120892/180467-0
3 “Biggest Hong Kong Protest in Months Signals More Unrest in 2020.” The Straits Times. 9 December2020. https://www.straitstimes.com/asia/east-asia/
biggest-hong-kong-protest-in-months-signals-more-unrest-in-2020
4 Siu, Phila. “Hong Kong Economy Contracted 1.9 Per Cent in 2019, IMF Forecasts, as Protests and Weak Global Growth Take Toll”. South China Morning Post.
30 December 2019. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3043947/hong-kong-exports-drop-13th-straight-month
5 Colliers, Hong Kong Market Outlook 2020, 2020: https://www.colliers.com/-/media/images/apac/hong%20kong/2020_images/radar_report/colliers-
hongkong-market-outlook-2020-20200121.pdf?la=en-GB
8 Housing Matters | March 2020 IssueHong Kong
Market Table
HONG KONG - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Standard Local Plus Standard Premium Luxury
Western District, Kowloon Shouson Hill, Stanley, Chung The Peak, Repulse Bay,
Tung Chung, Tsing Yi, Hong
Locations Kong East
West, Eastern District New Hom Kok, Tai Tam Mid-Levels Deepwater Bay, Mid-Levels
Territories, Discovery Bay West, Pokfulam, Happy Valley Central, Stubbs Road
Rent From Rent To Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (HKD/Month) (HKD/Month) (HKD/Month) (HKD/Month) (HKD/Month) (HKD/Month) (HKD/Month) (HKD/Month)
Typical Size ,400 sqft ,500 sqft ,400 sqft ,500 sqft ,400 sqft ,500 sqft ,400 sqft ,500 sqft
H2 2019 18,000 23,000 23,500 27,600 21,500 33,000 31,000 40,500
1 Bed Apt
Last H 19,800 25,000 25,000 30,000 23,500 35,000 34,500 45,000
Last Yr 18,742 23,380 23,373 29,000 20,606 34,700 34,000 44,226
Typical Size 550 sqft 700 sqft 550 sqft 700 sqft 550 sqft 700 sqft 550 sqft 700 sqft
H2 2019 23,500 28,000 29,000 45,000 36,000 50,500 44,000 52,800
2 Bed Apt
Last H 25,000 33,000 31,000 50,000 40,000 56,000 50,000 60,000
Last Yr 21,580 31,800 30,888 48,150 38,610 55,643 47,000 59,000
Typical Size 700 sqft 1,200 sqft 700 sqft 1,200 sqft 700 sqft 1,200 sqft 700 sqft 1,200 sqft
H2 2019 36,500 50,000 39,200 58,500 48,000 70.,000 64,000 85,000
3 Bed Apt
Last H 37,000 52,000 47,000 62,000 49,000 72,000 70,000 93,000
Last Yr 34,223 50,800 42,516 60,153 48,473 71,542 68,500 92,400
Typical Size 1,200 sqft 2,000 sqft 1,200 sqft 2,000 sqft 1,200 sqft 2,000 sqft 1,200 sqft 2,000 sqft
H2 2019 53,000 68,000 55,000 128,000 84,000 148,000 95,000 134,500
4 Bed Apt
Last H 55,000 70,000 56,000 135,000 90,000 170,000 115,000 168,000
Last Yr 54,808 68,337 53,890 134,152 88,861 167,400 111,000 165,000
Typical Size 3,000 sqft 4,000 sqft 3,000 sqft 4,000 sqft 3,000 sqft 4,000 sqft 3,000 sqft 5,000 sqft
H2 2019 88,000 100,000 120,000 198,000 145,000 190 200,000 380,000
4/5 Bed
House Last H 90,000 105,000 135,000 250,000 170,000 235,000 230,000 438,000
Last Yr 88,000 103,115 134,311 240,524 166,698 232,187 220,000 430,000
HONG KONG RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 24 months
Notice period 2 months
Typical deposit 2 months
*The minimum commitment is a 12+2 break option (14 months) but the actual lease term is 24 months.
Housing Matters | March 2020 Issue 9India
Market Snapshot
10 Housing Matters | March 2020 IssueRentals Were Largely Stable in H2
In India, expatriates typically congregate with other Delhi
expatriates to form communities to work and live Rents in the Indian capital were rock solid in H2 2019.
in. Commuting can be a challenge, and many prefer New property launches have slowed considerably as
to live near their workplaces and their children’s developers shift their focus towards clearing existing
schools. inventory. Popular expatriate neighborhoods in
Delhi include Golf Links, Jor Bagh, Shanti Niketan,
While some expatriates are provided with all
Chanakyapuri, and SouthEx.
the necessary housing arrangements by their
employers, many are still left to sort out their own Mumbai
accommodations. In such cases, it is extremely Although the property rental market in Mumbai
important to carry out adequate research before remains a landlord-dominated one, rents were stable
signing a lease, such as commuting times, safety throughout H2 2019. Suitable expatriate-friendly
and security in the neighbourhood, noise levels at all housing in Mumbai can be difficult to find and most
times of the day, power and water supply, included expatriates rent apartments with some facilities such
furnishings and white goods/home appliances, as gyms and clubhouses. With traffic congestion
and other factors which would be the norm in an in the city, location has to be a key consideration
expatriate’s country of origin. It is also strongly advised for daily commutes to work, as well as proximity to
to engage the services of a licensed property agent. international schools.
According to real estate agency, JLL, while residential Bengaluru
property sales across India’s top seven cities grew 6% Apart from minor dips in rents for smaller, lower-
year-on-year in 2019, new launches were down 14%.1 end properties, the rest of the market was stable
The second half of 2019 was particularly sluggish, in H2 2019. The North Bengaluru area is currently
with weak consumer demand amidst slowing experiencing rapid development with many new
economic growth. villas and apartments scheduled to launch by
the middle to end of 2020. Housed within gated
In cities across India where most expatriates are
communities and with close proximity to the
located, rents were mostly stable in the second half
international airport, they are expected to be a good
of 2019 and are expected to remain so in the first
draw for expatriates. Areas which are currently
half of 2020.
popular within the expatriate community include
Multinational companies continue to provide their Yellahanka, Hebbal, Rajankunte, Tanisandra, Judicial
expatriate employees who are deployed to India Layout, Jakkur, and Devanahalli.
with reasonable relocation packages. The trend for
Pune
shorter assignments continues, with more on shorter
Rents in Pune were stable in H2 2019 as the city
stints than long-term deployments.
continues to thrive with economic activity, especially
The International Monetary Fund (IMF) has slashed in the east of the city where the Special Economic
India’s 2019 economic growth from 6.1% to 4.8%, due Zone is located. Several international technology
to weak domestic demand and an underperforming companies have set up their offices in Pune and
non-bank financial sector. The IMF has also cut residential sites located near these IT hubs are
India’s 2020 gross domestic product (GDP) growth becoming increasingly popular with expatriates.
forecast to 5.9%.2 Despite these revisions, India could
potentially be the world’s fastest growing economy,
on par with China.3
1 JILL, India Real Estate Market Update 2019, 2020: https://www.jll.co.in/content/dam/jll-com/documents/pdf/research/apac/india/jll-india-real-estate-market-
2019-residential.pdf
2 “IMF Cuts India’s FY20 Growth Forecast to 4.8%.” The Economic Times. 20 January 2020. https://economictimes.indiatimes.com/news/economy/indicators/
imf-cuts-indias-fy20-gdp-growth-forecast-to-4-8/articleshow/73435183.cms
3 Abbas, Waheed. “India Set to be World’s Fastest Growing Economy.” Khaleej Times. 12 February 2020. https://www.khaleejtimes.com/business/economy/
india-set-to-be-worlds-fastest-growing-economy-
Housing Matters | March 2020 Issue 11Delhi
Market Table
Delhi - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Category Standard (Low) Premium (Medium) Luxury (High)
Green Park, Hauz Khas, SDA, Defence Colony, Hauz Khas, Safdurjung Chanakyapuri, Vasant Vihar, Westend,
Locations Nizamuddin, Saket Enclave, Gulmohar Park, Panchsheel Shanti Niketan, Anand niketan.
Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month)
Typical Size
1
Last H Not Available
Bedroom
Last Yr
Typical Size 900 sqft 1,200 sqft 900 sqft 1,200 sqft
2H 2019 60,000 90,000 80,000 150,000
2
Not Available
Bedroom Last H 60,000 90,000 80,000 150,000
Last Yr 60,000 90,000 85,000 180,000
Typical Size 1,500 sqft 2,000 sqft 2,000 sqft 3,500 sqft 3,500 sqft 4,000 sqft
2H 2019 90,000 180,000 150,000 300,000 250,000 450,000
3
Bedroom Last H 90,000 180,000 150,000 350,000 250,000 450,000
Last Yr 90,000 200,000 200,000 350,000 350,000 450,000
Typical Size 2,000 sqft 3,500 sqft 3,500 sqft 4,000 sqft 3,500 sqft 4,500 sqft
2H 2019 180,000 300,000 250,000 450,000 300,000 500,000
4
Bedroom Last H 180,000 300,000 250,000 450,000 300,000 500,000
Last Yr 190,000 300,000 325,000 475,000 450,000 upwards
Typical Size >3,500 sqft >4,500 sqft
2H 2019 450,000 600,000 450,000 800,000
5
Bedroom Last H 450,000 600,000 450,000
Last Yr 450,000 600,000 600,000 upwards
Not Available
Typical Size 450,000 >5,500 sqft
4/5 2H 2019 400,000 upwards 600,000 upwards
Bedroom
House Last H 400,000 upwards 700,000 upwards
Last Yr 450,000 upwards 750,000 upwards
Credit: IOS Relocations
DELHI RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 11 months
Notice period 2 months
Typical deposit 3 months
*It is not compulsory to register the lease. However, it is mandatory to print and sign the lease on a Stamp paper with a
minimum value of INR 100.
12 Housing Matters | March 2020 IssueMumbai
Market Table
Mumbai - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Category Standard (Low) Premium (Medium) Luxury (High)
Peddar Road, Altamount Road, Breach
Candy, Nariman Point, Walkeshwar,
Locations Goregaon, Jogeshwari, Andheri Juhu, Bandra, Khar, Santacruz
Carmicheal road, Malabar Hill,
Neapeansea road, Cumballa Hill, Worli
Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month)
Typical Size 500 sqft 700 sqft 500 sqft 700 sqft
H2 2019 50,000 70,000 50,000 100,000
1 Bed Apt Not Available
Last H 50,000 80,000 50,000 100,000
Last Yr 50,000 70,000 80,000 110,000
Typical Size 900 sqft 1,200 sqft 900 sqft 1,200 sqft 900 sqft 1,200 sqft
H2 2019 60,000 130,000 130,000 250,000 180,000 350,000
2 Bed Apt
Last H 70,000 125,000 125,000 250,000 175,000 350,000
Last Yr 90,000 150,000 175,000 275,000 275,000 425,000
Typical Size 1,200 sqft 3,000 sqft 1,200 sqft 3,000 sqft 1,200 sqft 3,000 sqft
H2 2019 100,000 200,000 160,000 500,000 300,000 600,000
3 Bed Apt
Last H 100,000 200,000 150,000 500,000 300,000 600,000
Last Yr 175,000 325,000 300,000 550,000 550,000 650,000
Typical Size 2,000 sqft 4,500 sqft 2,000 sqft 4,500 sqft 2,000 sqft 4,500 sqft
H2 2019 200,000 350,000 250,000 800,000 350,000 900,000
4 Bed Apt
Last H 200,000 350,000 250,000 800,000 350,000 900,000
Last Yr 250,000 400,000 500,000 650,000 650,000 850,000
Typical Size >3,500 sqft >3,500 sqft
H2 2019 300,000 800,000 400,000 900,000
5 Bed Apt Not Available
Last H 300,000 800,000 400,000
Last Yr 600,000 850,000 850,000 upwards
Credit: IOS Relocations
MUMBAI RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 12 months
Notice period 2 months
Typical deposit 3-6 months
*All leases must be registered. Initial 12-month leases require that a full term be locked in.
Housing Matters | March 2020 Issue 13Bengaluru
Market Table
Bengaluru - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Category Standard (Low) Premium (Medium) Luxury (High)
Waterville, Water Woods, Paradise Nest, Lake Vista, Pebble Bay (Apartments), Epsilon, Windmills of Your Mind,
Skylark Greens, Prestige Silver Oaks, Chaithanya Armdale, Ferns Paradise , Chaithanya Smaran, Palm Meadows
Communities Adarsh Serenity, Central bengaluru, Brigade caladium,Central Bengaluru, , Prestige Golfshire, Embassy
Builder /Private Apartment at (EBD/ Builder /private Apartment at Boulavard,Central Bengaluru Builder /
NBD/SBD) (EBD/NBD/SBD) Private Apartment at (EBD/NBD/SBD)
Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month)
Typical Size
H2 2019
1
Not Available
Bedroom Last H
Last Yr
Typical Size 1,200 sqft 1,500 sqft 1,500 sqft 1700 sqft Not Available
H2 2019 25,000 70,000 60,000 120,000
2
Bedroom
Last H 30,000 70,000 70,000 120,000 Very limited
Last Yr 15,000-30,000 35000-upwards 40,000-upwards 45,000- 120,000
Typical Size 1,600 sqft 2,000 sqft 2,500 sqft 3,500 sqft 3,000 sqft 4800 sqft
H2 2019 70,000 120,000 90,000 180,000 160,000 upwards
3
Bedroom Last H 80,000 120,000 100,000 175,000 175,000 upwards
Last Yr 35,000-50,000 35,000-50,000 60,000-upwards 70,000-upwards 250,000-upwards 250,000-upwards
Typical Size 3,000 sqft 4,000 sqft 4300 sqft 5,000 sqft 3800 sqft 6,500 sqft
H2 2019 120,000 200,000 120,000 250,000 200, 000 upwards
4
Bedroom Last H 130,000 200,000 125,000 225,000 225,00 500,000
Last Yr 50,000-150,000 50,000-150,000 160,000- upwards 160,000- upwards 300,000-upwards 300,000-upwards
Typical Size 5,000 sqft 8,000 sqft
H2 2019 300,000 upwards
5
Not Available Not Available
Bedroom Last H 300,000 upwards
Last Yr 300,000- upwards 300,000- upwards
Typical Size 3800 sqft 4,500 sqft 4,500 sqft 5,000 sqft 5,000 sqft 8,000 sqft
H2 2019 90,000 200,000 upwards 230,000 450,000
4
Bedroom
Last H Not Available 250,000 450,000 450,000 upwards
House
225,000-upwards
Last Yr 85,000-upwards 270,000-Upwards 350,000-upwards 375,000-upwards 500,000 upwards
Credit: IOS Relocations
BENGALURU RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 11 months
Notice period 2 months
Typical deposit 3 months
*All leases with a tenure of more than 11 months must be registered.
14 Housing Matters | March 2020 IssuePune
Market Table
Pune - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Category Standard (Low) Premium (Medium) Luxury (High)
Vishrant Vadi, Tingre Nagar, Wagholi, Sophan Baug, Magarpatta, Hadapsar, Koregoan Park, Kalyani Nagar, Viman
Locations Kharadi Bhavdhan, Wakad Nagar, Aundh, Baner, Boat Club Road
Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month) (INR/Month)
Typical Size ,500 sqft 800 sqft
H2 2019 15000 30,000
1 Bed Apt Not Available Not Available
Last H 15,000 20,000
Last Yr 18,000 30,000
Typical Size 900 sqft 1,200 sqft 900 sqft 1,200 sqft
H2 2019 25,000 50,000 50,000 100,000
2 Bed Apt Not Available
Last H 25,000 50,000 50,000 100,000
Last Yr 30,000 60,000 60,000 100,000
Typical Size 1,400 sqft 2,400 sqft 1,400 sqft 2,400 sqft 2,400 sqft 2,800 sqft
H2 2019 35,000 100,000 60,000 150,000 130,000 200,000
3 Bed Apt
Last H 40,000 120,000 60,000 150,000 130,000 180,000
Last Yr 80,000 150,000 150,000 200,000 250,000 250,000
Typical Size 2,500 sqft 3,,500 sqft 2,,500 sqft 4,000 sqft 3,,500 sqft 6,000 sqft
H2 2019 90,000 150,000 150,000 300,000 300,000
4 Bed Apt
Last H Not Applicable 180,000 300,000 300,000 500,000
Last Yr 100,000 150,000 180,000 250,000 250,000 500,000
Typical Size >4,500 sqft
H2 2019 450,000 upwards
5 Bed Apt Not Available Not Available
Last H 450,000 upwards
Last Yr 450,000 600,000
Credit: IOS Relocations
PUNE RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 12 months
Notice period 2 months
Typical deposit 6-10 months (negotiable)
*It is mandatory to register the L & L Agreement with the stamping authority. Stamp duty ranges from approximately INR
10,000 - INR 50,000 depending on the tenure of the L & L
Housing Matters | March 2020 Issue 15Kuala
Lumpur
Market Snapshot
16 Housing Matters | March 2020 IssueStable Rents in H2 2019 Amidst Oversupply Concerns
Kuala Lumpur was ranked the second-best city in high-end condominiums and residences may put
the world for expatriates to relocate to in 2020, downward pressure on rents in the near future.
according to the InterNations’ Expat City Ranking
According to Knight Frank Research, there were
2019. 1 Survey participants found the city to be the
five such properties launched in H2 2019: Tower
world’s easiest city to settled in, and praised the ease
1 @ Star Residences, Aria KLCC, Stonor 3, Novum
of day-to-day communication in English, the low cost
Bangsar, and Sunway Mont Residence.2 Collectively,
of local living, travel connectivity, and several other
these added 2,572 units into the market, with
favourable traits.
a cumulative supply of 59,358 units at the end
As far as accommodation options go, expatriates of 2019. Another 11 projects are expected to be
have ample choices in the type of housing and the launched in H1 2020.
areas they wish to live in, which will suit a variety
Expatriate allowances continue to be modest,
of budgets. Safety and security should be key
with a growing trend of short-term deployments
considerations, along with proximity and accessibility
with limited housing or schooling allowances. This
to workplaces and children’s schools, with the
means that many will have to look for affordable
availability of amenities also being important factors
accommodation. However, this may change
when choosing a home.
as the government is considering only issuing
Serviced apartments may be a viable option for employment passes to foreigners for skilled jobs
recently relocated expatriates or those on higher that pay RM 10,000 or more per month.3
budgets. For longer stays, many opt for apartments
The resurgence of the oil and gas sector, as well as
or condominiums that are closer to the city
other major infrastructure projects, such as the East
centre. There are also semi-detached homes and
Coast Rail Link and the Bandar Malaysia project,4
townhouses, some of which may be within a gated
have brought about new expatriate arrivals in H2
community.
2019.
Many individuals or couples prefer to live close to
Rents are still expected to be stable in the first half
Kuala Lumpur City Centre (KLCC) and Bangsar due to
of 2020, although older or less popular properties
the proximity of their offices. Mont Kiara is popular
may see a fall in demand due to the launch of
area for families, with several types for housing
many new developments, especially in the high-end
available and international schools close by, although
segment.
it lacks a nearby mass rapid transit (MRT) station.
Analysts expect a sharp economic slowdown in
For those seeking lower rents, suburban areas such
the first six months caused by the coronavirus
as Kota Damansara and Cheras are viable options
(COVID-19) outbreak: The economy may bounce
with good MRT connectivity.
back in the second half of the year with the
Rents have been largely stable in the Malaysian introduction of the Malaysia Economic Stimulus
capital throughout the year, besides marginal Package, which seeks to mitigate the impact on
movements in H2 2019. However, an oversupply of Malaysia's severely-affected tourist industry.5
1 InterNations, The Annual Expat City Ranking, 2019: https://www.internations.org/press/press-release/the-best-and-worst-cities-in-the-world-to-live-and-
work-abroad-in-2020-39934
2 Knight Frank, Real Estate Highlights 2nd Half 2019, 2020: https://content.knightfrank.com/research/179/documents/en/malaysia-real-estate-highlights-
2h-2019-6889.pdf
3 Aris, Nurul Azwa. “Govt Mulls Stopping Foreigners from Skilled Jobs Below RM10,000 Pay Grade.” FMT News. 20 February 2019.
https://www.freemalaysiatoday.com/category/nation/2019/02/28/govt-mulls-stopping-foreigners-from-skilled-jobs-below-rm10000-salary/
4 Chew, Rachel. “Nine Things About the Property Market in 2019.” EdgeProp. December 21, 2019. https://www.edgeprop.my/content/1625428/9-things-about-
property-market-2019
5 Yusof, Ayisy. "Malaysia's 2020 economic growth to be a tale of two halves." New Straits Times. 2 March 2020.
https://www.nst.com.my/business/2020/03/570879/malaysias-2020-economic-growth-be-tale-two-halves-analysts
Housing Matters | March 2020 Issue 17Kuala Lumpur
Market Table
KUALA LUMPUR - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Standard Local Plus Standard Premium Luxury
Locations Damansara Mont Kiara Kenny Hills, Bangsar Suria KLCC, Ampang District
Rent From Rent To Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (MYR/Month) (MYR/Month) (MYR/Month) (MYR/Month) (MYR/Month) (MYR/Month) (MYR/Month) (MYR/Month)
Typical Size ,500 sqft 850 sqft ,500 sqft 850 sqft ,500 sqft 850 sqft ,500 sqft 850 sqft
H2 2019 1,500 2,200 2,800 3,500 3,000 4,500 3,000 5,000
1
Bedroom Last H 1,200 2,000 2,800 3,500 3,500 4,500 3,000 4,500
Last Yr 1,200 2,000 2,800 3,500 3,500 4,500 3,000 4,500
Typical Size 850 sqft 1,200 sqft 850 sqft 1,200 sqft 850 sqft 1,200 sqft 850 sqft 1,200 sqft
H2 2019 2,600 3,300 3,300 5,000 4,200 6,000 4,200 7,500
2
Bedroom Last H 2,500 3,300 3,500 4,000 4,500 5,500 4,500 7,000
Last Yr 2,500 3,300 3,500 4,000 4,500 5,500 4,500 5,500
Typical Size 1,200 sqft 2300 sqft 1,200 sqft 2300 sqft 1,200 sqft 2300 sqft 1,200 sqft 2300 sqft
H2 2019 3,500 5,000 4,200 9,000 5,000 8,500 5,000 9,000
3
Bedroom Last H 3,500 4,500 4,500 6,000 5,000 6,000 5,000 9,000
Last Yr 3,500 4,500 4,500 6,000 5,000 6,000 5,000 7,000
Typical Size 1,800 sqft 3,500 sqft 1,800 sqft 3,500 sqft 1,800 sqft 3,500 sqft 1,800 sqft 3,500 sqft
H2 2019 6,000 8,000 7,000 15,000 8,000 12,000 9,000 12,000
4
Bedroom Last H 6,000 7,500 7,000 11,000 9,000 12,000 10,000 12,000
Last Yr 6,000 7,500 7,000 11,000 9,000 12,000 10,000 12,000
Typical Size 3,000 sqft 6,000 sqft 3,000 sqft 6,000 sqft 3,000 sqft 6,000 sqft 3,000 sqft 6,000 sqft
H2 2019 8,000 10,000 10,000 18,000 9,000 20,000 10,000 20,000
4/5
Bedroom Last H 8,500 10,000 12,000 18,000 10,000 17,000 12,000 18,000
Last Yr 8,500 10,000 12,000 18,000 10,000 17,000 12,000 15,000
KUALA LUMPUR RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 24 months
Notice period 2 months
Typical deposit 2.5 months
*The minimum lease terms are 24 months but with an option to terminate with either a 10+2 or 12+2 break option.
18 Housing Matters | March 2020 IssueSingapore
Market Snapshot
Housing Matters | March 2020 Issue 19Rents Fell in H2 After a Robust H1
Singapore has one of the highest costs of living in According to the Urban Development Authority
the world, with housing contributing to a large part (URA), vacancy rates for private residential properties
of the expenditure. However, relatively low personal fell throughout the year, with 5.5% of units being
income taxes and a strong, stable currency can mean vacant at the end of 2019.2 Rents of private
a greater net income than in their home country for residential properties rose 0.1% in Q3 but dropped
many expatriates. 1% in Q4. Following a robust first half of the year,
rents of non-landed properties increased between
There are several housing options available for
1.4% and 2.7% for the whole of 2019.
expatriates, depending on their budgets and
lifestyle requirements. For those on tighter budgets, Rents of non-landed properties in the Core Central
renting a single room in a shared flat or a one- Region decreased by 0.7% in Q3, with a further drop
room apartment can be a feasible option. Houses of 1% in Q4. In the rest of the Central Region, rents
(commonly referred to locally as “landed properties”) were up 1.6% in Q3 but were down 0.7% in Q4. Rents
are an option for families with high budgets or with for properties outside of the Central Region fell 1%
several accompanying children. compared with a 0.8% increase in the quarter before.
Most expatriates stay in condominiums, which often Expatriate arrivals in Singapore were higher in
feature swimming pools, gyms, and tennis courts. 2019 as compared to 2018, but they generally face
There are condominiums across the island, but those reduced housing budgets and allowances. Some are
closer to the Central Business District (CBD) would also deployed on a project basis, with employment
undoubtedly be more expensive and smaller than terms of up to 18 months. With these factors
those in the outer suburbs. Private flats are similar in mind, smaller, more affordable units may be
but are often in older buildings with fewer facilities. favoured by these new arrivals.
A good transportation network and criss-crossing The economic outlook for Singapore continues to
Mass Rapid Transit (MRT) lines provide easy be bleak, following a mere 0.7% full-year growth in
commuting anywhere in the city, but housing options 2019, the lowest in a decade, according to advance
that are close to MRT stations would yield higher estimates by the Ministry of Trade and Industry. 3
rents. The ever-expanding MRT network will be The government has set an early estimate for gross
further boosted by nine new stations at the northern domestic product (GDP) growth in 2020 at 0.5% to
section of the Thomson-East Coast Line, which are 2.5%, noting that the tense international climate
set to open by the end of 2020.1 could affect these forecasts. 4
Expatriate families will also likely consider the In the first half of 2020, the residential property
proximity of international schools when searching rental market is expected to be stable, with little
for their ideal homes. Leases in Singapore are movement in either direction. The impact of the
typically signed for two years and can come with a ongoing coronavirus (COVID-19) outbreak is
‘diplomatic clause’ that allows them to be terminated expected to be cushioned by the government’s policy
after one year. tweaks, including exempting some listed property
developers from a punitive tax. 5 This is expected
In the second half of the year, popular areas amongst
to hold property prices stable even if the economy
tenants were concentrated in central locations such
takes a turn for the worse.
as Orchard, River Valley, Tanglin, Holland, Novena,
Newton, Marina Bay, and Keppel Bay.
1 Low, Zoey. “Six More Stations on Thomson-East Coast Line Opening This Year.” Channel News Asia. 17 January 2020. https://www.channelnewsasia.com/
news/singapore/tel-thomson-east-coast-line-6-stations-2020-phase-2--12273378
2 Urban Redevelopment Authority, 4th Quarter 2019 Real Estate Statistics, 2020: https://www.ura.gov.sg/Corporate/Media-Room/Media-Releases/pr20-06
3 See, Sharon. “Decade-low Growth in 2019 Clouds 2020 Forecasts for Singapore GDP.” The Business Times. 03 January 2020. https://www.businesstimes.com.
sg/government-economy/decade-low-growth-in-2019-clouds-2020-forecasts-for-singapore-gdp
4 “Singapore’s Economic Rebound Depends on Global Calm: PM Lee Hsien Loong.” The Straits Times. 24 January 2020. https://www.straitstimes.com/business/
economy/singapores-economic-rebound-depends-on-global-calm-pm-lee
5 Lim, Kevin. “Singapore Eases Property Rule Amid Fallout from Coronavirus.” NIKKEI Asian Review. 7 February 2020. https://asia.nikkei.com/Business/
Markets/Nikkei-Markets/Singapore-eases-property-rule-amid-fallout-from-coronavirus
20 Housing Matters | March 2020 IssueSingapore
Market Table
35,000
Standard Local Plus Standard Premium Luxury
Orchard , River Valley,
Katong, Marine Parade, Toa Payoh, Ang Mo Kio, Bukit Timah, Novena,
Locations Bedok, Changi Bishan Newton
Tanglin Road, Mount Faber,
Sentosa Cove
Rent From Rent To Rent From Rent To Rent From Rent To Rent From Rent To
Property Profile (SGD PCM) (SGD PCM) (SGD PCM) (SGD PCM) (SGD PCM) (SGD PCM) (SGD PCM) (SGD PCM)
Typical Size 500 sqft 650 sqft 500 sqft 650 sqft 500 sqft 650 sqft 500 sqft 650 sqft
H2 2019 2300 2900 2900 3200 2800 3500 3500 6100
1 Bed Apt
Last H 2,155 2,880 2,880 3,195 2,740 3,360 3,360 6,050
Last Yr 2,120 2,825 2,825 3,125 2,680 3,285 3,285 5,915
Typical Size 650 sqft 1,000 sqft 650 sqft 1,000 sqft 650 sqft 1,000 sqft 650 sqft 1,000 sqft
H2 2019 2900 4800 3600 4200 3700 7300 4700 8700
2 Bed Apt
Last H 2,785 4,530 3,605 4,120 3,667 7,285 4,700 8,700
Last Yr 2,725 4,435 3,530 4,035 3,590 7,130 4,600 8,645
Typical Size 1,000 sqft 1,500 sqft 1,000 sqft 1,500 sqft 1,000 sqft 1,500 sqft 1,000 sqft 1,500 sqft
H2 2019 3800 6200 4300 5500 5500 8200 7300 12000
3 Bed Apt
Last H 3,700 4,900 4,330 5,460 5,500 7,600 7,280 9,300
Last Yr 2,618 4,790 4,238 5,345 5,400 7,432 7,130 9,100
Typical Size 1,500 sqft 3,000 sqft 1,500 sqft 3,000 sqft 1,500 sqft 3,000 sqft 1,500 sqft 3,000 sqft
H2 2019 6000 9800 7000 9300 8900 12500 11500 24000
4 Bed Apt
Last H 5,975 9,780 7,005 9,270 8,833 12,476 11,500 20,800
Last Yr 5,850 9,575 6,855 9,073 8,645 12,210 11,195 20,340
Typical Size 3,000 sqft 5,000 sqft 3,000 sqft 5,000 sqft 3,000 sqft 5,000 sqft 3,000 sqft 5,000 sqft
H2 2019 9000 12300 8800 12800 11300 19200 16200 42000
4/5 Bed
House Last H 8,815 12,300 8,815 12,300 11,275 19,200 16,175 37,295
Last Yr 8,945 12,465 8,945 12,465 11,450 19,095 15,780 36,385
SINGAPORE RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 24 months
Notice period 2 months
Typical deposit 2 months
Housing Matters | March 2020 Issue 21Thailand
Market Snapshot
22 Housing Matters | March 2020 IssueStable Rents Across Thailand in H2
Expatriate-friendly housing is readily available According to Colliers, after a spike in newly-launched
in Thailand and will suit a variety of budgets condominiums hitting the market in the second half
and preferences, be it condominiums, serviced of 2018, supply was considerably low throughout
apartments close to the city centre, or larger houses 2019. 2 Occupancy rates for serviced apartments
in suburban areas. stood at 86% at the end of 2019 and supply is on
a steady climb, with large developers entering the
Thai immigration laws, in particular the TM30,
market. 3
require all landlords to register any foreigners living
in their private properties within 24 hours of their With traffic congestion in Bangkok being an issue,
arrival at the local immigration office.1 While the many expatriate families carefully consider their daily
landlord is responsible for these formalities, tenants commute times to workplaces and schools. Homes
should comply with these regulations to avoid near Mass Rapid Transit (MRT) and Bangkok Mass
complications with the authorities. Transit System (BTS) stations are highly favoured.
Taxation related to housing can also be fairly In Bangkok, Sukhumvit remains the most popular
complex for newly arrived expatriates, thus engaging area for expatriates to rent homes, along with the
the services of an accredited real estate agency is CBD, Lumphini and Sathorn. Popular areas in Pattaya
recommended. A 7% VAT rate will be charged for include Pong Naklua, Pratumnak Hill, and Jomtien.
the lease of furniture and service agreement or
Net expatriate departures have been observed
management fees. For leases signed by a corporate
throughout 2019 and new arrivals tend to be singles
entity, a 5% withholding tax will have to be retained
or couples without children. Housing budgets have
by the landlord. Household tax and fees for the
generally been modest but steady. With smaller
use of compound facilities are to be borne by the
family sizes and limited budgets, expatriates tend to
landlord, although such additional charges may be
be more budget-conscious in their housing choices.
passed on to tenants.
The Thai government has cut its 2020 GDP growth
On a brighter note, most tenancy agreements come
forecast from 3.3% to 2.8% attributing it to weaker
with a favourable clause for tenants, protecting them
exports, a delayed budget, and the impact the
from any rental hikes during lease renewals.
ongoing coronavirus (COVID-19) outbreak. 4
Besides decreases in asking prices for some
As for the property rental market, it is expected to
premium one- to two-bedroom apartments in the
remain stable in the first half of 2020.
Bangkok Central Business District (CBD), rents across
Thailand were largely stable throughout H2 2019.
1 “TM30 Explained. You Must Register Any Non-Thai National Living In Your Property.” Perfect Homes. 2019. https://perfecthomes.co.th/tm030-registration-
thailand/
2 Colliers, Bangkok Condominium Q4 2019, 2020: https://www.colliers.com/-/media/files/apac/thailand/market-reports/research_quarterly-q4%20
2019-condominium-eng.pdf
3 Colliers, Bangkok Service Apartment Q4 2019, 2020: https://www.colliers.com/-/media/files/apac/thailand/market-reports/research_quarterly-q4-2019-
service%20apartment-eng.pdf
4 “Thailand Cuts 2020 Economic Growth Forecast Amid Wuhan Virus Spread.” The Straits Times. 29 January 2020. https://www.straitstimes.com/business/
economy/thailand-cuts-2020-economic-growth-forecast-amid-wuhan-virus-spread
Housing Matters | March 2020 Issue 23Bangkok
Market Table
Bangkok - SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Standard Local Plus Standard Premium Luxury
Locations Sukhumvit/CBD
Rent From Rent To Rent From Rent To Rent From Rent To Rent To
Property Profile (THB/Month) (THB/Month) (THB/Month) (THB/Month) (THB/Month) (THB/Month) (THB/Month)
Typical Size 25-30 sqm 30-32 sqm 45-55 sqm 70-110 sqm
H2 2019 12,000 14,000 20,000 25,000 55,000 70,000 60,000 80,000
1 Bed Apt
Last H 12,000 14,000 20,000 25,000 65,000 80,000 100000 120,000
Last Yr 12,000 14,000 20,000 22,000 70,000 80,000 100,000 110,000
Typical Size 45-80 sqm 60-90 sqm 60-100 sqm 100-170 sqm
H2 2019 30,000 40,000 65,000 75,000 95,000 110,000 150,000 180,000
2 Bed Apt
Last H 30,000 40,000 75,000 85,000 100,000 120,000 170,000 180,000
Last Yr 30,000 40,000 70,000 75,000 100,000 110,000 170,000 180,000
Typical Size 100-120 sqm 150-180 sqm 150-200 sqm 150-250 sqm
H2 2019 50,000 60,000 90,000 100,000 120,000 190,000 200,000 300,000
3 Bed Apt
Last H 40,000 50,000 100,000 110,000 150,000 180,000 200,000 250,000
Last Yr 40,000 50,000 80,000 90,000 150,000 170,000 180,000 200,000
Typical Size 120-150 sqm 160-180 sqm 250-350 sqm 400-700 sqm
H2 2019 200,000 300,000 300,000 450,000
4 Bed Apt
Last H Not Available 160,000 180,000 250,000 430,000
Last Yr 180,000 200,000 250,000 450,000
Typical Size 400-600 sqm 500-1,000sqm
H2 2019 230,000 250,000 Not Applicable
4/5 Bed
Not Available
House Last H 200,000 240,000 260,000 350,000
Last Yr 220,000 240,000 270,000 360,000
Credit: Pacific Orientation
BANGKOK RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 12 months
Notice period 1-2 months
Typical deposit 2 month
*Diplomatic clauses are only accepted in year 2 of the tenure. There are very rare situations when a corporate landlord will
accept the diplomatic clause during the first year, after completing the first 6 or 10 months of stay.
In over 95% of cases, the landlord will insist on a booking fee / holding deposit being paid in order to hold the property in
the assignees name whilst lease negotiations / payment processing are ongoing. This amount is either returned once the
lease is signed and the security deposit and first months rental are paid, or is offset against the first month’s rent.
24 Housing Matters | March 2020 IssueEastern Seaboard
Market Table
Eastern Seaboard- SNAPSHOT OF TYPICAL ASKING RENTS (APPROX.)*
Standard Local Plus Standard Premium Luxury
Locations Pattaya
Rent From Rent To Rent From Rent To Rent From Rent To Rent To
Property Profile (THB/Month) (THB/Month) (THB/Month) (THB/Month) (THB/Month) (THB/Month) (THB/Month)
Typical Size 25-30 sqm 30-32 sqm 50-55 sqm 50-55 sqm
H2 2019 8,000 12,000 22,000 30,000 50,000 65,000 60,000 100,000
1 Bed Apt
Last H 8000 10,000 22,000 25,000 60,000 75,000 80,000 90,000
Last Yr 8000 10,000 22,000 25,000 60,000 70,000 80,000 90,000
Typical Size 45-80 sqm 60-90 sqm 70-100 sqm 70-120 sqm
H2 2019 20,000 25,000 25,000 35,000 80,000 90,000 80,000 120,000
2 Bed Apt
Last H 20,000 22,000 25,000 30,000 80,000 95,000 100,000 130,000
Last Yr 20,000 22,000 25,000 26,000 80,000 90,000 100,000 120,000
Typical Size 90-120 sqm 140-180 sqm 140-200 sqm 160-250 sqm
H2 2019 30,000 40,000 50,000 90,000 90,000 130,000 130,000 180,000
3 Bed Apt
Last H 30,000 35,000 75,000 85,000 100,000 120,000 150,000 180,000
Last Yr 28,000 30,000 70,000 80,000 10,000 120,000 130,000 160,000
Typical Size 120-150 sqm 150-200 sqm 160-220 sqm 170-240 sqm
H2 2019 120,000 150,000 150,000 200,000
4 Bed Apt
Last H Not Available 125,000 150,000 175,000 190,000
Last Yr 120,000 150,000 160,000 180,000
Typical Size 300-400 sqm 400-600
H2 2019 130,000 170,000 170,000 200,000
4/5 Bed
Not Available
House Last H 130,000 170,000 160,000 200,000
Last Yr 120,000 150,000 160,000 180,000
Credit: Pacific Orientation
EASTERN SEABOARD RESIDENTIAL RENTAL MARKET TRENDS
Typical length of tenancy 12 months
Notice period 1-2 months
Typical deposit 2 month
*Diplomatic clauses are only accepted in year 2 of the tenure.
Housing Matters | March 2020 Issue 25Tokyo
Market Snapshot
26 Housing Matters | March 2020 IssueVery Tight Property Market with Rent Increases in H2
Expatriates may find renting a property in Tokyo to Demand for properties in the expatriate
be a challenging process compared to other parts neighbourhoods of Azabu and Hiroo remained high.
of Asia. Depending on the contract type, there Neighbourhoods in the Tokyo Bay area such as
are stricter regulations for foreigners to secure a Kachidoki and Toyosu continue to be popular options
lease, such as applying to a guarantor company for for foreign tenants on local contracts. International
approval in the case of personal leases. schools are almost at full enrolment across all
grades, leaving families with few options.
The contract process for corporate leases is generally
very straightforward, but with many corporations With the Olympics and Paralympics running
opting not to offer them, combined with an increase from late July to early September, short-term
in localised headcount, expatriates may struggle accommodation is all but fully booked during this
to secure a preferred property under a personal period, including hotels and serviced apartments,
contract. The application must first be approved creating issues for companies sending assignees on
by a guarantor company. Once accepted, these six- or 12-month stints. As such, some companies
companies will typically charge 50% of the monthly may even consider leasing regular apartments with
rent value as their fee, with additional nominal utilities and furniture included to address such
administrative fees due each year of the lease accommodation problems.
thereafter.
Current mobility trends indicate a greater number
For personal leases, an assignee would also need to of new assignees hired on local contracts with a
consider upfront payments that can be exorbitant, lump-sum relocation allowance. Those on short-term
reaching up to half a year’s worth of rent. These expatriate assignments are also being converted to
payments typically include an advance payment of longer-term local contracts.
two month’s rent, an agent’s fee of a month’s rent,
a non-refundable ‘key money’ fee of one to two Although budgets for those on full expatriate
month’s rent, liability insurance premiums, and a packages are already generous, the current
security deposit. property market crunch may lead to a further 10%
to 15% increase in allowances for individuals so
The consumption tax was increased on 1 October that they can enjoy living in popular expatriate
2019 from 8% to 10%, which will not impact rents but neighbourhoods.
will affect other fees and services.1
The ongoing coronavirus (COVID-19) outbreak has
Available properties for rent in Tokyo continue to put a dent in the business outlook for those directly
be in very short supply. According to Mori Hills impacted, such as the tourism sector. 5
REIT, occupancy rates for its residential properties
throughout H2 2019 were at least 96%.2 The supply In the first half of 2020, the rental market is still
of new apartments for sale in 2019 was just 31,238, expected to be tight, with stable demand and
the lowest level in 27 years. 3 Rents across greater extremely low supply.
Tokyo in 2019 were up 4.5% from 2018. 4
1 Kyodo. “Japan Household Spending Fell 4.1% in Warm December, Weighed Down by Tax Hike.” Japan Times. 7 February 2020. https://www.japantimes.co.jp/
news/2020/02/07/business/economy-business/japan-household-spending-fell-december
2 Mori Hills REIT, Trend in Occupancy Rates, 2020: https://mori-hills-reit.co.jp/en/portfolio/occupancy_rate/tabid/201/Default.aspx
3 The Real Estate Economic Institute, New Apartment Supply in 2019 Reaches Lowest Level in 27 Years, 2020: https://japanpropertycentral.com/2020/01/new-
apartment-supply-in-2019-reaches-lowest-level-in-27-years
4 Japan Property Central, Apartment Rents in Greater Tokyo Climb 4.5% in 2019, 2020: https://japanpropertycentral.com/2020/01/apartment-rents-in-greater-
tokyo-climb-4-5-in-2019
5 Kyodo. “Outlook in Japan Dimming Amid Coronavirus Outbreak: Economy Watchers Survey.” Japan Times. 10 February 2020. https://www.japantimes.co.jp/
news/2020/02/10/business/economy-business/outlook-japan-dimming-amid-coronavirus-outbreak-economy-watchers-survey
Housing Matters | March 2020 Issue 27You can also read
