When it comes to the price of renting luxury real estate, Hong Kong is still on top.

The city retains its title as the world’s most expensive city to rent a luxury apartment, according to a report from Knight Frank. The report examines the cost of a three-bedroom apartment in a central location across eight different cities.

Prime rents in Hong Kong stood at $6.70 per square foot at the end of 2020, and a monthly budget of $10,000 would get a renter less than 1,500 square feet of space. In New York City, which ranked No. 2, the same budget would get a renter 2,249 square feet of space.

Singapore, London, and Sydney respectively follow behind Hong Kong and New York City when it comes to the cost of renting a luxury apartment.

One of the key reasons people choose to rent in expensive locations is due to raised purchase, ownership and sales costs in recent years.

As an example, foreign buyers looking to purchase in markets such as Hong Kong and Singapore would have to pay between 15% and 20% in additional stamp duties on top of existing rates for domestic buyers, making renting a more attractive option.

Prime renters also seek flexibility and an the opportunity to ‘try before they buy’.