Cities, firms join drive to spur rental hous­ing

Fi­nan­cial in­no­va­tion part of long-term so­lu­tion to over­heated real es­tate mar­ket

China Daily (Latin America Weekly) - - Businessö -

China’s once-siz­zling prop­erty mar­ket has shown signs of cool­ing as prices have fal­tered in ma­jor cities amid tough gov­ern­ment curbs. Cen­tral au­thor­i­ties have re­it­er­ated on many oc­ca­sions that “hous­ing is for liv­ing in, not spec­u­la­tion”.

For many new set­tlers in the cities, own­ing a house is too ex­pen­sive while rent­ing means less com­fort, fre­quent mov­ing, lack of pub­lic ser­vices and deal­ing with dis­hon­est agents.

Moody’s said the push to boost rental hous­ing would not af­fect sales of prop­erty de­vel­op­ers over the next six to 12 months, cit­ing “the gen­eral de­sire of the Chi­nese to own their homes”.

The long-term po­ten­tial is there: China’s rental hous­ing mar­ket will reach 4.2 tril­lion yuan ($637 bil­lion) in rev­enue by 2030, up from 1.3 tril­lion yuan now, ac­cord­ing to a re­search re­port from Ori­ent Se­cu­ri­ties.

How­ever, the de­vel­op­ment of the mar­ket will re­quire “con­tin­ued gov­ern­ment sup­port to en­sure the long-term ef­fec­tive­ness of aims such as cheaper land prices, fa­cil­i­tat­ing fund­ing chan­nels and in­vest­ment cap­i­tal re­cy­cling, and pro­mot­ing equal rights for own­ers and ten­ants,” the rat­ings agency said.

WANG ZHUANGFEI / CHINA DAILY

Prospec­tive ten­ants check in­for­ma­tion about a pub­lic rental hous­ing project in Bei­jing’s Chaoyang dis­trict.

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