On 29 february, at the house fair, wang bing, director of the centre for real estate research in shenzhen city, described the fact that since the beginning of the year, shenzhen city has maintained its unswerving and unmitigated real estate management objectives. In the area of fostering the development of the rental market, the implementation opinions on accelerating the development of the housing rental market and the shenzhen housing rental pilot work programme have been introduced, and there are currently some 500 businesses operating in the city。
Wang xin explained that shenzhen had a total of about 7. 83 million rental housing units, representing 73. 5 per cent of the total housing stock. Nearly 80 per cent of the population, based on a city-wide de facto population of 21 million, needs to solve housing problems through rents. Of the city-wide rental housing supply, urban rental housing accounts for 62. 6 per cent of the city-wide rental housing stock, and industrial accommodations for 17. 9 per cent. Market-wide rental housing accounts for 86. 2 per cent of the total rental housing stock, while policy rental housing such as public rental housing accounts for only 13. 8 per cent, and rental housing is highly marketed。
There are current supply and demand tensions in shenzhen housing rental market. Wang xin stated that, in terms of demand, shenzhen has an additional resident population of between 500,000 and 600,000 people per year, and that it needs between 200,000 and 250,000 new rented housing units, but that only one third of the additional rented housing is available, while the other two thirds are to be addressed through the stock market. With regard to rent increases, according to the survey team of the statistical office, in july this year rentals increased by 5 per cent in shenzhen city over the same period; according to the shenzhen city real estate research centre, the average rent for shenzhen commercial dwellings increased by 7. 4 per cent over the same period between january and july this year, while in july the value of commercial housing rents increased by 5. 1 per cent and 9. 6 per cent over the same period。
In addition, wang bing described the current relative lack of legislation and regulations in the housing rental market, where some enterprises or institutions have entered the shenzhen rental market in a capitalized operation, and some leasing enterprises and intermediaries have published false information, false sources of housing, misleading consumers and disrupting market order。
New: next year, 248 flat-rent commodities room
In the afternoon, the shenzhen state planning commission issued an official circular stating that, in order to follow up on the deployment of a “stable house price, rent control” operation, shenzhen city was actively exploring the design of a stable rental commodity management system, taking into account the experience of the management of mature rental markets such as germany. The commission, in collaboration with shenzhen metro group and deep industries group, has become the leading pilot project in shenzhen to explore the design of a stable rental housing system。
According to the information received by the journalists, “stable rental commodity housing” refers to the construction and organization of real estate development enterprises, which rent only and not sell for a certain period of time, are subject to rent control or guidance from the competent government authorities, and are intended for the rental of goods by unpurchased residents working in shenzhen city. The basic features of this type of rental housing are rent control, open-ended accommodation, housing queues, limited tenure, and full process online。
The first 248 pilot housing units will be launched next year, and are expected to be available online for rental in early 2019 and in september 2019. The relevant head of the land commission for planning in shenzhen city stated that the commission would further study and optimize the concept of rent-free commodity housing, the rent-fixing target, the rent-positioning mechanism, the rental process, the contract netting, etc., through lessons learned from the pilot project。
However, the director indicated that the project was in the pilot phase of exploration and that there was no municipal policy or comprehensive plan。
Recommendation: accelerate the development of housing rental policies
Wang zai stated that, in order to achieve the goal of real estate regulation, it was recommended that the government expedite the development of policies to guarantee the livelihood of rented housing and promote the normative development of rental markets. On the one hand, the study on the regulation of rental housing in shenzhen city was accelerated to provide a legal basis for regulating healthy development in the housing rental market. On the other hand, it has accelerated the establishment of a system of qualification for rental enterprises, as well as the establishment of a system of guiding prices for housing rents, so that annual rent increases are kept at a reasonable level。
At the same time, he recommended the introduction of a housing rental netting system to strengthen the management of rental contract filing, statistical analysis and rental control, and that the lessor should not simply terminate the contract unless justified by law and regulations. Moreover, the market order has been strengthened, renting enterprises have been subjected to severe censorship, such as rent-raising, house-grabbing, false information and other disruptions of the rental market, daily inspection of rented housing has been intensified and the security of houses has been compromised. In addition, the financial regulatory authorities should carry out a rigorous review of housing rental loans, securities finance and the “rent loans” and securitization of various types of assets using internet-based financial platforms。
Data: nearly 80 per cent of people in shenzhen need housing
From 29 to 31 august, the shenzhen international real estate fair in shenzhen, china, and the first-ever housing rental industry exhibition in shenzhen, china, were held. The long-awaited exploration and pilot project for a stable rental housing system, “perfect apartments in tong long city”, was officially featured at the exhibition. Journalists were informed that the pilot project introduced strict rent controls, with one house at a rate of 1 per year and a higher annual rent growth rate of 5 per cent。
Rented commodity houses
Rent control: introduction of a “one house at one rate per year” with starting rents determined by a market assessment and a higher annual rent growth rate of no more than 5 per cent
(b) unlimited: unlike the basic guaranteed income and asset restrictions, it is available to all residents of shenzhen who have paid social insurance for more than one year
(a) tenancy queues: eligible residents can submit their own applications in the system and line up
(b) limited lease term: the duration of the first lease is up to three years, with the possibility of renewal for up to two years, with the possibility of rearrangement after the expiration of the lease
Full process online: a science-based rental system is in place to achieve a full online house-watching contract and to match tenant needs at all times。
