Rental prices of prime residential property in Singapore fell by 3.6 percent in Q1 2016 compared to the same period last year, according to Knight Frank’s Prime Global Rental Index.
The complete index, which monitors the change in high-end residential rents across 17 global cities, dropped for a third straight quarter, with rents falling on average by 0.5 percent in the year to March 2016.
In fact, 11 cities recorded level or dropping prime rents over the last 12 months.
Toronto leads the ranks with prime rents growing by 8.9 percent in the year to March 2016, followed by Guangzhou with 5.3 percent growth.
Nairobi occupies the bottom position after rents fell by 7.9 percent. This is preceded by Hong Kong, which saw a decrease of 5.2 percent.
Nicholas Holt, Head of Research for Asia Pacific at Knight Frank, said: “Real estate markets in Asia have been sensitive to the wider macro economic environment in 2016, as presented by the prime residential rental performance in the seven major Asian cities monitored.
“Singapore and Hong Kong, both cities with significant export exposure have found with Shanghai still seeing rental increase on the rear of a robust local market, while mainland Chinese cities have seen more varied performance, rents dampen.
“Looking ahead, the political uncertainty in Europe and the US will probably weigh on the area for the second half of the year, depressing rental growth prospects.”