Prime rents in key global cities grew by 1.3% year-on-year (YoY) in 1Q2015, down from 3.5% in 1Q2014, according to Knight Frank Prime Global Rental Index. Tokyo led the growth in rents for the second consecutive quarter with 8.1% YoY increase in prime rents. The report surveyed prime rents in 18 cities.

Singapore was the third worst performing city, after Beijing and Moscow, with its prime rents down by 4.9%. Geneva trailed closely with a 2.9% decline in its prime rents.

Alice Tan, Head of Research at Knight Frank Singapore, says, “Mainly confronted by tightened immigration and labour policies, along with moderated economic growth, Singapore’s residential leasing market has weakened with a fall in rents of high-end properties. With an estimated influx of 20,000 private residential units island-wide, along with the prospect of low population and workforce growth this year, overall rentals is slated to decline, with an estimated 3% to 5% year-onyear drop in rentals of high-end residential properties by fourth quarter of 2015.”