Rental prices dropped at the end of 2012 as more companies terminated their leases in response to the global economic slowdown. With many choosing to downsize quietly, it has been difficult to gauge just how many expats have left since July; but there is definitely an excess supply in the rental market, especially at the higher end.
Many expatriates on re-negotiated packages have downsized, or even decided to buy their own property. Outlying areas were popular in 2012, but are expected to adjust in 2013. Rentals in the deflated prime areas have dropped the most so far, but these are expected to bottom out soon.
Lower rentals are expected through 2013, perfect both for newcomers taking up their first lease and for lease renewers hoping to negotiate a better price. Although tying yourself into a longer lease, say three years, would make sense for those of you staying long term, a savvy landlord might not want to commit – and for the same reasons.
Happy hunting in 2013!