KUALA LUMPUR: Kuala Lumpur continues to fall out of Asia’s top 40 list of most expensive places for rental accommodation, showing no signs of stopping.
According to the latest Accommodation Survey by ECA International (ECA), Kuala Lumpur is now more affordable than places such as Colombo, Sri Lanka, and Kathmandu, Nepal.
“The property market in Kuala Lumpur has suffered from high levels of speculation over the past couple of years and high levels of new construction.
“The market is oversupplied, and landlords have to compete significantly on price to secure tenants.
“The domestic economy has not been strong enough to bolster demand for the excess of higher-end properties on the market. However, a slowdown in property construction and cooling measures from the Malaysian central bank should see the market stabilise in future years,” said ECA International regional director Lee Quane.
Meanwhile, Singapore is now the eighth most expensive location in Asia for rental accommodation, down one place from last year, and down from fourth in 2016.
“This is due to a slowing of economic growth and a net reduction in inbound assignments, exacerbating the surplus of higher-end properties on the market that would normally attract expatriates.
“This oversupply has reduced average rent levels in Singapore for the past three years,” said Quane.
Rental prices for an unfurnished, mid-market, three-bedroom apartment in areas commonly inhabited by international executives in Singapore average US$4,337 per month – over US$175 cheaper per month than a year previously.
Elsewhere in the region, accommodation costs have been on the rise.
Hong Kong remains the most expensive location in Asia for rental accommodation. Rental prices for an unfurnished, mid-market, three-bedroom apartment in areas commonly inhabited by international executives in Hong Kong average US$10,461 per month.
ECA is the leading provider of knowledge, information and software for the management and assignment of employees around the world.
To help companies provide the right housing options as part of the overall compensation package for mobile employees, ECA’s research compares rental accommodation costs in areas typically inhabited by expatriate staff in over 240 locations worldwide.