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Singapore has now become the 5th most expensive place to rent in Asia, and 9th worldwide. This is according to a survey by HR solutions provider ECA International, which added that  residential accommodation rental rates for a three-bedroom apartment have increased 33 percent from last year – the highest year to year percentage increases in Asia followed by Mumbai and Guangzhou.

“The demand for high-end accommodation has risen, driving up rental prices, which can be partly explained by companies expanding their operations in Singapore together with government initiatives to attract skilled workers from overseas,” Lee Quane, General Manager, ECA International Hong Kong, explains. “But at the same time, the supply of property available has been limited by a number of factors such as en bloc purchases by developers, which has exacerbated the situation.”

However, it is still less than half the rental cost of an equivalent property in Hong Kong, the survey’s most expensive location. In Tokyo, the 2nd most expensive Asian location, a three-bed apartment costs over 60 percent more to rent than in Singapore.

Six of the top 10 most expensive locations in the world are in Asia, with Mumbai (6th), Seoul (7th), Singapore (9th) and Ho Chi Minh City (10th) joining Hong Kong and Tokyo.

“On average, rental prices in Asia are approximately US$3,820; well above the global average of US$2,950. A robust economy and increased demand for high-end accommodation have been instrumental in driving rental prices up,” Quane adds.