Rental rates in Taipei forecasted to increase

Rental rates in Taipei forecasted to increase
Dec 28, 2009 - PropertyGuru.com.sg

Rental rates and housing prices in Taipei City could continue to surge, according to real-estate brokers.

The latest list of Asia's most expensive places to live, which is published by Forbes magazine, showed that Taipei was ranked 16th with an average monthly rent of US$1,065 for a high-end two-bedroom apartment.

Tokyo topped the list at US$4,737, followed by Hong Kong with a monthly average rent of US$3,871, while Beijing was ranked 3rd at US$3,659.

Urban districts where prices increased the most include several financial hubs like Mumbai, Taipei and Singapore, according to the annual cost-of-living survey released by Mercer Consulting.

Despite the global crisis, rents are relatively high and prices of real estate are increasing in such cities, according to Forbes.

"In the past, we've seen Europe as the most expensive place. Over time, Asian cities have caught up quite a bit in terms of cost-of-living increases," said Mercer’s principal consultant, Cathy Loose. "Mainly because of the limited space, real estate in terms of demand versus supply is driving the rental price high." Huang Cheng-fu, assistant manager of Evertrust Rehouse – one of the top real estate brokers in Taiwan – said the US$1,065 monthly figure estimated by Mercer for a two-bedroom apartment in Hsinyi or Daan district in Taiwan is a reasonable price.

Compared to the US$3,871 average monthly rent for a two-room apartment in HK, housing prices and rental rates in Taipei are expected to continue to increase despite closer exchanges in the greater China area, noted Mr. Huang.

Sinyi Realty Estate manager, Su Chi-jung, said Taipei's ranking reflects its possibility to become more globalized, because its rental rates are closely related to international levels.

If there are more foreign business executives in a city, rental rates usually increase because of the foreign nationals rental of high-quality houses, said Mr. Su.

With Taiwan Strait exchanges continuing to grow, and more Chinese and foreign executives coming to Taiwan, Mr. Su predicted that the city will be leading the list in the near future.

But other locations in the country will not see a similar increase in property rental rates.