The real estate slowdown in Beijing has now hit rental apartments. Rents are down 1.8% in September. Still up 2.5% yoy, but that could quickly reverse given the current pace. Transactions fell 10% mom.
To give an idea of how fast rents increased, in August 2010 I was paying ￥2600 for an apartment and this year when I left, rent was about to hit ￥4000. Granted a subway stop was built nearby, increasing the attractiveness of the area, but the rent I paid was consistent with city averages.
“I’ll ask, behind that building small Sanju, now how much money to rent?” Yesterday afternoon, in stores in Xisanhuan an intermediary, one carrying Budou old aunt pointed to the last century, not far from a old building built in the 1980s, said. The aunt would have thought the city set tenements sold, but not second-hand housing prices have been high, her vacant house after six months, and finally decided to rent out the house first.
“This listing more and more recently on the market.” Manager that stores briefed reporters, owners significantly longer period houses, some owners chose to turn a one-time sale of long-term leases, obtain stable rental income, which also contributed to the increase in rental housing than in previous years.
According to Albert I love my home market Institute of Statistics, the average price of residential rents in Beijing in September for the 3869 yuan / sets, slightly down 1.8% MoM, an increase of only 2.5 percent a year earlier. In terms of market volume, Sept. Beijing rental market turnover fell last month nearly 10% compared to last year increased by 11%.
Since the third quarter of this year, the city average price of 3914 yuan residential rental / sets, only slightly more than the second quarter, the average price increase of 1.4% compared with the same period in last year’s third quarter growth of 2.4%. Rent year quarter, the chain rose more than 5% of the previous years rose significantly narrowed.
New housing market, the third quarter, the Beijing residential leasing market, new listings grew by 8% qoq, up sharply increased 69.5%. New source of customers in the market, the third quarter, the Beijing new residential rental market was up 0.7% qoq tourists, an increase of 18.8%. Listing increase significantly greater than tourist growth. Rental market supply and demand pressure has been eased significantly.
In the case of the third quarter, the market’s overall performance point of view, July, August, September three month price monthly trading volume basically showed a slight downward trend. Third quarter, Beijing residential leasing market across the summer rental season due to a relatively low season and autumn, the former market performance heat, cold, and gradually cooling process.
For listings on the market increased significantly, in addition to the sale of sublease addition, expert analysis, with the continuous progress of urban rail transit construction, a large number of cities and new suburbs along the track to be included in the Beijing whole house residential rental market in the past, but also Listings can induce a significant increase over previous years. In addition, after a rapid rise in rents over the past several years later, the current average price of residential leases already in Beijing, the highest level ever, substantial rental income, also contributed to the majority of owners prefer to rent to earn more rent, prompting room objectively source increases.
“With the rental market cooling, the next time the market volume price remained stable, slow downward trend will continue throughout the fourth quarter, the average price of Beijing rents will continue to fall.” The expert said Beijing rental market rents skyrocketing era has passed, followed by a more stable price volatility “new normal.” Listings increased, more likely to choose to secure desirable house rental.