Bureau of Investigation of People’s Livelihood
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New Zealand finance and Economics January 15 (Zuo Yukun) before renting, into a “buyer’s market”?
Recently, media reports, Shenzhen Futian, Nanshan, Bao ‘an and other areas show rent reduction, rental difficult, rental cycle elongated phenomenon, and landlords take the initiative to reduce rent.
Spring Festival is coming, is it a good time to pick up the slack?
Will rents really fall before the end of the year?
Brokers in Shenzhen said many apartments have been vacant for three to four months, and many owners have offered to reduce rents to maintain occupancy rates, CCTV Finance reported. At the same time, shenzhen residents report that they can obviously feel the decline of 500 to 1000 yuan. Last year, three houses worth 11,000 yuan to 12000 yuan can be rented for around 9800 yuan now.
“The run-up to Chinese New Year is really the most cost-effective time of year to rent.” Li Feng (pseudonym), a Real estate agent in Beijing, told China New Finance that rent increases can reach 300-500 yuan in the New Year.
“From the perspective of owners’ mentality, the house will not be rented out before the Spring Festival holiday and the vacancy period will be longer, so they generally want to earn a sum of money. They can also consider lowering the rent. The end of the year is another struggle for the New Year, the more you earn, the more rent will go up. In addition, from the perspective of renters, the market demand is large, and the price will naturally rise.”
“My agent told me it’s hard to say whether it will be low before the New Year, but it will definitely rise after the New Year.” Li, who is in Wuhan, Hubei province, is considering changing her house recently, but she always feels that she has to go home vacant for a long time after renting the New Year.
“But the agency has been advising me that this month is the lowest rent time, THE house I like to come back at least 100 to 200 yuan, according to the long term calculation or before the rent is appropriate.” Xiao li said.
Can leasing be a buyer’s market?
Spring Festival every year, the population flow back home to return to the post has been the time before the rental season. But this winter, it will be “colder.”
“In the past two years, rents in Shenzhen have been in a state of continuous decline. In 2020, compared with 2019, the overall decline is about 6%, and in 2021, compared with 2020, the overall decline is about 5%, and the two-year decline is about 11%.” Shenzhen Zhongyuan Research Center senior researcher Zou Shaowei said.
According to the statistics of Shenzhen Shell Research Institute, the rental demand in Shenzhen decreased month by month in the fourth quarter of 2021, and the decline continued to expand in the last month. The landlord transaction period extended to 61 days in the fourth quarter, an increase of 8 days year-on-year. The transaction cycle for tenants was 26 days, extending 13 days compared with the same period last year.
Rental decline, vacancy period becomes longer, together constitute a cold housing rental market in Shenzhen undertone.
On December 10, data released by the official website of The Beijing Municipal Bureau of Statistics showed that the rental housing market entered the off-season in November, with the rental price dropping 0.3% month-on-month.
“The decrease seems small, but it is hard to see any rent easing in Beijing. After all, the demand for rent in Beijing is also one of the highest in the country. Landlords always feel that they have no worries about rent.” But Mr. Li has also recently felt some changes in Beijing’s rental market, as landlords who previously insisted on renting only for a long time have become willing to rent for a short time.
The national trend is even more pronounced. According to the housing Rental Market Report 2021 released by Shell Research Institute, the average monthly rent in 40 key cities is 38.8 yuan/square meter, up 1.3% year-on-year, and still down 8.8% compared with 2019. The rental market is turning into a “buyer’s market”.
The housing market, the weather vane has changed
“Working for the landlord” is an annual summary commonly used by many renters and has attracted official attention.
In August 2021, the Ministry of Housing and Urban-Rural Development issued a Notice on Preventing Major Demolition and Construction in the Implementation of Urban Renewal, stipulating that the annual increase in urban housing rents should not exceed 5 percent in order to comprehensively solve the rental housing problems of key groups such as new citizens and low-income people.
In addition to rent control, local policies to encourage and subsidize the rental market are also frequently implemented. For example, Shandong province has proposed to gradually implement household registration for renters and nearby schools for their children.
“Since last year, the central and local governments have introduced regulatory policies, which have effectively reduced the operating risks of leasing companies, ushered in a benign market competition environment for residential leasing companies, and the leasing industry has shown a trend of rapid development.” Shell Research institute chief analyst Xu Xiaole said.
Indemnificatory rental housing is the focus of the next stage of construction. On Jan 11, Pan Wei, head of the housing security department of the Ministry of Housing and Urban-Rural Development, said that the next step will be to increase policy support in finance, land and public services to expand the supply of affordable rental housing.
“During the 14th Five-Year Plan period, an additional 6.5 million apartments will be built in 40 key cities, which is expected to help 13 million new residents and young people ease their housing difficulties.” Pan said.
“With the increase of affordable rental housing, white-collar apartments and blue-collar apartments, the supply-demand conflict in the rental market will ease in the future, and there will be no momentum for a sharp rise in rental prices.” Xu believes rents will remain relatively stable, especially in cities that are less attractive to migrants. (after)