2023-07-14 02:34:29
Broken glasses! Taipei City ranks second to last in the “Rent Pain Index” ranking of the 20 most expensive major cities in the world. The pain level is only higher than that of Geneva, Switzerland, and less than one-tenth of Mumbai, India. This is mainly due to the fact that the national per capita GDP was about 32,811 yuan last year.
Broken glasses! The Taipei City Rent Pain Index ranks second to last.File photo: Central News Agency
According to the statistics of Xinchuan Real Estate, in the first quarter of 2023, the “Rent Pain Index” of major cities with the most expensive rents in the world is quite unexpected. The most expensive rent burden is Mumbai, the economic city of India, with a pain index as high as 190.24, which is a pain value. It is far better than Beijing, which is the second highest, by several times. On the other hand, the rent pain index in Taipei is only 12.87, which is less than one-tenth of Mumbai’s pain value. The difference is very wide.
He Shichang, CEO of Xinchuan Real Estate Think Tank, said that from the perspective of rent and per capita GDP, the rent pain index in Taipei City is relatively low, but because everything is rising and wages are not rising, many renters sigh unbearable; however, There is no comparison and no harm. The rent burden in the first-tier economic cities in most countries is even heavier, and it is very difficult for shellless snails to gain a firm foothold in big cities.
Rent Pain Index for cities in major countries around the world.Picture/Provided by Xinchuan Real Estate
Three of the top five suffering cities are in Asia
The city with the highest rent pain index is Mumbai, India, with an average rent of 1,420 yuan per ping. However, India’s per capita GDP in 2022 is only 2,389 yuan, and the rent pain index is as high as about 190. Due to the large number of business people dispatched from Mumbai, and the average annual salary of expatriates exceeding US$210,000, coupled with the culture of landlords raising rent every year, the rent in Mumbai remains high.
Beijing, China has the second highest rent pain index, with an average rent of 1,791 yuan per ping, which is the city with the highest rent level in China. However, the per capita GDP is about 12,720 yuan, and the rent pain index is about 45. The rents in Dongcheng, Xicheng, Haidian and other districts are particularly expensive. Shanghai is the second most expensive city in China, with an average rent of 1,485 yuan per ping, and a rent pain index of about 37, ranking fourth among the cities in the statistics. Due to the large number of migrant workers in Beijing and Shanghai, the high rents make it difficult for the migrant population to afford. They often rent houses in remote areas and in poor condition to reduce their burden.
The central bank’s eagle-style interest rate hikes and rents soared
According to He Shichang’s analysis, in the past year, housing prices in countries around the world have generally fallen more than rose, but rents have risen more than they have fallen, especially in countries that have adopted “eagle-like interest rate hikes”, because landlords pass on the cost of increasing interest rates to rents, resulting in these Rents in countries have risen sharply, such as the United Kingdom, the United States, Australia, Canada, Sweden and other countries.
The average rent per ping in Q1 in London, England this year rose to about 5,355 yuan, and the pain index reached 37.39; the Bank of England raised interest rates sharply, prompting landlords to increase rents, and the rent increases pushed up the consumer price index (CPI), in order to curb inflation The central bank raised interest rates again, forming a circular dilemma. A similar situation also happened in the United States. Although the CPI in the United States fell sharply to 3%, the “rental price index” still exceeded 7%. Rents in New York, San Francisco, Boston, Los Angeles and other cities continued to rise, and the pain index in New York City reached 31.15. Ranked fifth out of 20 cities.
Rent Pain Index for cities in major countries around the world.Picture/Xin Chuan Real Estate Think Tank
The value of pain starts with 1, and the North City only loses to Geneva
As for Taipei City, the average rent per ping in Q1 this year was about 1,319 yuan, while the national per capita GDP was about 32,811 yuan last year, and the rent pain index was 12.87, ranking second last among the 20 cities, indicating that the rent burden is relatively light. Calculated at 1,319 yuan per ping, if you rent a two-bedroom building with 28 pings (including public buildings), it will cost about 37,000 yuan, but if you rent an average of 208,000 yuan in New York (excluding public buildings), it will cost 145,000 yuan in London (excluding public buildings). ), Hong Kong needs 130,000 yuan (including public buildings), and Beijing needs 50,000 yuan (including public buildings).
The city with the lowest rent pain index is Geneva, Switzerland, with an average rent of 3,555 yuan per square meter and a pain index of about 12.36, which is the place with the lowest rent burden among the 20 cities.
He Shichang believes that high housing prices and high rents are a common phenomenon in the world. There are many policy measures to curb housing prices, but the measures to curb rents are extremely limited. The current policies to crack down on rent increases have not had much effect. The main reason is that residents always Living in a disadvantaged position, it is easy for the landlord to pass on the cost to the rent. Therefore, when the government regulates the rental housing market, it needs to be careful that the knife is aimed at the landlord but accidentally injures the tenant.
further reading
Can’t buy 3-year-old Tienmu mansion in Taipei, and the book value increased by 37 million
Ye Yiru, Special Correspondent of Yahoo Finance: 22 years of experience in financial mainstream media, from the bubble of Web1.0 in 2000 to Web3.0 of the Meta universe, witnessed the history of the rise and fall of large and small business groups in Taiwan, and experienced five international financial crises. Think that finance is life, omnipresent, no matter how difficult financial management knowledge should be explained in a simple way. No matter you are young or old, you should manage money. If you don’t manage money, money will ignore you.
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