Post-hol­i­day, Beijing home rentals set to rise

China Daily (Latin America Weekly) - - Business - By REN XIAOJIN renx­i­ao­jin@chi­nadaily.com.cn

Now that the Spring Fes­ti­val hol­i­day is over, home rentals in Beijing are ex­pected to rise be­cause of two fac­tors.

One, the num­ber of homes avail­able for rent­ing has shrunk; two, work­ers from in­te­rior ar­eas have started to flock back to the coun­try’s cap­i­tal. So, de­mand is ex­pected to out­strip sup­ply.

“A week into the Chi­nese lu­nar new year, there would be a grow­ing num­ber of po­ten­tial ten­ants look­ing for rooms, and af­ter two weeks, the mar­ket will be­come very ac­tive,” said Liang Yan­ming, se­nior an­a­lyst at Hope­flu­ent Real Es­tate Re­search, a branch of the Hong Kong-listed Hope­flu­ent Real Proper­i­ties.

Typ­i­cally, rentals rise af­ter the an­nual hol­i­day. This year will be no ex­cep­tion even though over­all hous­ing prices have dropped of late, in­dus­try in­sid­ers said.

“The rentals will rise be­cause we can’t source enough homes from land­lords,” said Fang Yan­ping, an agent from Lian­jia, China’s big­gest real es­tate chain deal­ing in rentals and pre-owned homes.

“Since last year’s fire tragedy, many apart­ment build­ings were torn down or barred from rent­ing out. So sup­ply has been af­fected while de­mand re­mains high. We’re hav­ing a hard time find­ing homes for prospec­tive ten­ants,” she said.

She was re­fer­ring to the Nov 18 fire in a two-story res­i­den­tial build­ing of low-in­come mi­grant work­ers in the Dax­ing District, a south­ern sub­urb of Beijing, that killed 19 res­i­dents and in­jured eight.

“Take the 28-square-me­ter stu­dio in Lishuiqiao area, for ex­am­ple. Its monthly rent in 2017 was 4,200 yuan ($662.60). That could now be 4,600 yuan or more,” Fang said. Lishuiqiao is a pop­u­lar res­i­den­tial area near the North Fifth Ring Road of Beijing.

PRO­VIDED TO CHINA DAILY

A ten­ant in a Beijing apart­ment checks his smart­phone for leads to cheaper ac­com­mo­da­tion.

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