(The de­vel­op­ment of rental hous­ing could help) avert dras­tic ups and downs in the prop­erty mar­ket and re­duce ir­ra­tional de­mand.”

China Daily (Latin America Weekly) - - Businessö - Hukou

BEI­JING — Ma­jor Chi­nese cities, de­vel­op­ers and the fi­nan­cial sec­tor are mov­ing quickly to join a gov­ern­men­tled cam­paign to de­velop the rental hous­ing mar­ket.

This comes as the coun­try’s top au­thor­i­ties aim to pro­vide a long-term so­lu­tion to an over­heated real es­tate mar­ket by en­cour­ag­ing more peo­ple to rent rather than buy.

For a long time, soar­ing prop­erty prices have put ur­ban res­i­dents un­der pres­sure, mak­ing hous­ing af­ford­abil­ity a grow­ing prob­lem for pol­i­cy­mak­ers.

Now the gov­ern­ment wants to fur­ther tap the rental mar­ket to sta­bi­lize home prices and curb spec­u­la­tion, and a key is pro­vid­ing ten­ants with the same ac­cess to pub­lic ser­vices and de­cent liv­ing con­di­tions that own­ers en­joy.

A new house rental pol­icy in Bei­jing came into ef­fect re­cently, guar­an­tee­ing the ed­u­ca­tion rights of ten­ants’ chil­dren and al­low­ing those rent­ing gov­ern­ment-sub­si­dized hous­ing to have their

(house­hold reg­is­tra­tion) reg­is­tered and trans­ferred to their rented homes.

In the south­ern city of Guangzhou, a pol­icy re­leased re­cently made clear that the per capita res­i­den­tial area in a rented house should be no smaller than 5 square me­ters to en­sure a healthy and safe en­vi­ron­ment for ten­ants.

At least 10 cities have al­lo­cated land for rental hous­ing con­struc­tion, ac­cord­ing to data from Cen­taline Prop­erty.

In Bei­jing, au­thor­i­ties plan to sup­ply 6,000 hectares of land for res­i­den­tial hous­ing by 2021, 30 per­cent of which will be for rental houses.

Mar­ket play­ers are see­ing op­por­tu­ni­ties.

China Vanke, the coun­try’s top prop­erty de­vel­oper, had of­fered 12,000 to 18,000 apart­ments for long-term leas­ing as of July, aim­ing to in­crease the num­ber to 100,000 by the end of the year, ac­cord­ing to Yu Liang, the com­pany’s chair­man and CEO.

Ali­Pay, the lead­ing mo­bile pay­ment plat­form, an­nounced last month it would en­able users in eight cities to rent houses through the plat­form with­out hav­ing to pay de­posits, based on their credit records.

Fi­nan­cial in­no­va­tion is catch­ing up to give rental prop­erty man­agers new ac­cess to fund­ing. A “quasi” real es­tate in­vest­ment trust or REIT was ap­proved last a Cen­taline Prop­erty an­a­lyst month to al­low a Bei­jing­based con­do­minium man­ager to of­fer re­tail in­vestors se­cu­ri­ties backed against in­come from rental apart­ments, the first fi­nan­cial prod­uct of its kind in China.

All these new mea­sures are part of a plan to im­prove af­ford­abil­ity and sta­bi­lize home prices in the medium to long term, ac­cord­ing to a re­port from global rat­ings agency Moody’s.

Zhang Dawei, a Cen­taline Prop­erty an­a­lyst, said the de­vel­op­ment of rental hous­ing could help “avert dras­tic ups and downs in the prop­erty mar­ket and re­duce ir­ra­tional de­mand”.

Zhang Dawei,

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