[photopress:shanghai_residential.jpg,full,alignright]Shanghai’s rental rates for a three-bedroom apartment rose 5% last year to US$4,000 per month making it, according to a survey by ECA International, the eighth most expensive place in the world.
The annual survey, which compares rental prices in 92 cities worldwide, shows Hong Kong is, at US$8,592 per month on average, the world’s most expensive city for a three-bedroom apartment in a popular expatriate area.
Beijing ranks 11th with an average rental price of US$3,840 per month in 2006.
Even though rental rates in Beijing and Shanghai are among the highest in the world, they are cheaper now compared to 10 years ago. The average rental of a three-bedroom apartment is about 50 % cheaper in Beijing compared to 10 years ago while in Shanghai it is 40% less. Which is quite surprising.
Lee Quane, general manager of ECA International Hong Kong, explained, ‘Ten years ago prices in Beijing and Shanghai were artificially inflated due to a severe lack of quality supply, restrictions on property ownership and where foreigners could reside. Today, however, foreigners are allowed to live wherever they like and more and more high-end properties are being built.’
Source: Shanghai Daily