China LESS REPORTED (1): Ordinary Residential Rental Sector
Real Estate Analysis Limited
Data from Soufun - China Real Estate Index System CREIS)
While there are sufficient
market publications on the higher end China residential rental market
sector, there are few if any reports on the
a) the ordinary residential rental sector, b) 2nd hand
private residential sector, and c) the residential villa sector.
Thus we have decided to offer some basic data and indexes on these sectors,
and in this article, we shall deal with the latter (a) sector which in a way
may reflect the overall economy, affordability, and market sentiment more
Ordinary residential rental
properties herein include
those originating from public-built units, economic housing units, and the
mass private (commodity) market units, and the indexes are compiled based on
tens of thousands of rental listings from various real estate brokerage and
internet sources. Such rental units are also deemed to offer the basic
amenities such as heating, water, electricity and the like, and would
include some basic furnishings and furniture as well. These units are
usually 1 bedroom, 2 bedroom, and 3 bedroom units ranging from approximately
30m2 to 100 m2 in floor area with rents being paid quarterly.
Only the 4 major markets of
Beijing, Shanghai, Guangzhou, and Shenzhen are dealt with. Here are the
basic index charts:
At first glance, except
Shanghai, the other markets have made gains albeit small.
By December 2006, all 4 markets showed drops yet again Shanghai dropped the
most nearing 10%. Perhaps some of the economic measures were taking their
also again note these rentals are meant for ordinary households,
and the monthly rental amounts are generally in the low 4-figure range, e.g.
RMB 1,000-3,000 range, denoted in Chinese Yuan.
The article and/or content contained herein are for general reference only
and are not meant to substitute for proper professional advice and/or due
diligence. The author(s) and Zeppelin, including its staff, associates,
consultants, executives and the like do not accept any responsibility or
liability for losses, damages, claims and the like arising out of the use or
reference to the content contained herein.
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