Bloomberg information, the average rent in Manhattan County (NewYork) has decreased 11% over the previous year. The rental price of apartments may drop even more. With offices still closed and entertainment limited, the most expensive area of the city is losing its inherent appeal.
The New York Times also recorded home prices in Manhattan for the first time in a decade to fall below $ 3,000. The reason is that inventory and rent are strongly discounted. Manhattan is home to a large proportion of high-income people in New York counties and many of them chose not to renew their lease during the pandemic. Rents in Brooklyn and Queens counties both declined, to $ 2,599 and $ 2,200 a month, respectively.
Bloomberg has previously recorded a trend that many New Yorkers have stopped renting homes, turning to suburban homes when demand for large living spaces and low lending interest rates during the pandemic.
In San Francisco, Realtor.com data shows that the average monthly rent for an apartment dropped 31% in September from the same period last year, to $ 2,285. Meanwhile, the average across the United States, rents fell 0.5%.
Business Insider said that the departure of many tenants from San Francisco happened before Covid-19 when housing and living costs in this city were expensive. The epidemic has made this even stronger when major technology companies with headquarters here such as Google and Facebook allow employees to work from home until next year, "liberating" a large number of workers forced to rent a house near Silicon Valley.
As the second largest financial center in North America after New York, apartments in Toronto (Canada) are "languishing". Rents fell sharply by 14.5% in the third quarter compared to the same period in 2019, according to data from research firm Urbanation. Immigration stops and rising housing demand during the pandemic have reduced demand for apartments. On the other hand, a series of newly completed condominium projects as well as operators promoting long-term lease contracts also made inventories in the market more.
In London (UK), the reason for the falling rent is that the number of international students has decreased significantly because of the pandemic, while those with money shifted to buy houses. Rents in more expensive areas fell 8.1% in September, the biggest drop in more than 10 years, according to Knight Frank.
Apartment building in London
The Royal Institution of Chartered Surveyors, London, is the only region in the country where demand for housing has decreased. Seven out of 10 respondents predict that London rents will continue to decline in the next 3 months.
In Singapore, data from real estate portal SRX Property shows that rental numbers of private businesses decreased by 8% year-on-year. Rents are now 17% lower than their peak in 2013. In contrast, home sales are at their highest level in 2 years. Christine Sun, head of research and consulting at OrangeTee & Tie, said that more and more tenants are signing short-term contracts to move away when finding somewhere cheaper.
In general, the popularity of remote work in Covid-19, the number of foreigners immigrating decreases due to an entry restriction or the need to buy a house instead of renting, causing rent in major cities to plummet recently. "The supply of rentals is plentiful while the demand for subleases is declining," Tim Lawless, head of Asia-Pacific research at CoreLogic, a real estate and finance analyst firm, told Bloomberg. Therefore, the balance of power was more inclined towards the tenants, instead of the landlord as before.
Duc Minh (VnExpress)
Bloomberg, NYT, BI
