What is it? The PGRI tracks the movement in luxury rents across 10 global cities
- Prime rental growth peaked in the first quarter of 2022, increasing 11.3% in the year to June, down from 11.9% in March 2022
- New York leads the annual rankings with prime rental growth of 39%, London is in second place with 27% growth but both markets are likely to see demand ebb and supply increase in the coming months
- Singapore has moved into third place with rents rising 15.3% in the year to June, due primarily to a return of expatriates since the city-state reopened its borders
- Hong Kong (-2.1%) and Auckland (1.6%) sit at the bottom of the rankings table this quarter
- Higher mortgage rates have the capacity to increase both demand and supply in the rental sector.
- Deteriorating affordability in the sales market will push some buyers to rent instead, and with fewer buyers, some sellers may become accidental landlords