Rents up in firsttier cities due to rising demand, short supply

Rents in first-tier cities rose in July, which experts said was mainly driven by increasing demand from college graduates and short supply in local markets.

Apartment rent in cities like Beijing, Shanghai as well as Guangzhou and Shenzhen in South China’s Guangdong Province reported month-onmonth increases in July, media reports said.

Average rent in Beijing was 91.5 yuan ($13) per square meter in July, up 2.2 percent on a monthly basis, financial news site 21jingji.com reported on Thursday, citing industry data.

Industry data showed apartment rent in Beijing’s Dongcheng and Xicheng districts is among the highest in the capital, while the rise in rent rates for each square meter is more than 120 yuan every month, the report said.

Analysts have attributed the rent rise to short supply of housing resources in Beijing’s rental market and the increased demand from college graduates during summer.

Analysts also said that domestic housing authorities are expected to set up rent management mechanisms to further regulate the housing rental market.

China on Wednesday reported a slowdown in the growth of sales prices of new commercial residential buildings in firstand second-tier cities in July compared with June, according to an official survey.