According to the times, close to the end of the year, zhang zhang zhang (aliases) of the fukuda neighbourhood in shenzhen felt rents had dropped and empty housing sources had increased。
In june 2021, zhang zhang rented a room near the fukuda crossing at a price of $4,600 per month for vacant premises, $5,000 per month for electric appliances and $6,000 per month for some owners. In recent days, there has been an increase in the number of registered houses at the owners ' forum, with an empty room price of $4,000 per month for one room and $4,300 per month for house electricity, a 40 per cent drop in the higher point。
Fukuda is one of the most densely populated areas in shenzhen and has traditionally been the hottest area in the rental market. In 2021, the rents of fukuda and yonggang were relaxed and the entire city fell。
According to data monitored by the shenzhen research centre, rents in shenzhen city-wide housing fell in 2021, averaging approximately 72 yuan/m2, or 5. 5 per cent. Shenzhen rent fell by about 11 per cent compared to 2019. In june 2017, shenzhen rent averaged 72 yuan/m2. This means that shenzhen's rent level has returned four years ago。
Long-rent apartments are under stress
Recently, the topic “shenzhen rents are falling” has been frequently searched. A number of “battered workers” have been notified of the landlord's initiative to reduce the rent, which has never happened in the past。
Poan, a long-term tenant of an apartment, has been told by times weekly reporter that her apartment has recently been subject to a major rent reduction of rmb 1,400 per month, while the source rent was rmb 1900 per month at the beginning of 2019。
Lindane is rented in small units at a current price of approximately $1,200 per month. At the beginning of 2019, the rental cost of the house was approximately $1650 per month. Three years on, the rent did not rise or fall. According to lindane, the apartment she rented was about 60 houses, with a current vacancy rate of about 19 per cent。
In the market cycle, long-term apartment investors earn rent differentials by changing the household model to increase the total housing stock. When the market is cold, the source becomes hot potato, holding costs, wages, etc. Are difficult to calculate。
Li wen (alias) is the head of the brand of a chain of rented apartments in shenzhen fukuda district. There are four chains and one enterprise apartment in the centre of fukuda。
On 13 january, during an interview with the times correspondent, li wen revealed that since the fourth quarter of 2021, the shenzhen rental market had experienced a monthly decline in temperature, which fell to the ice point by january 2021. In the five apartments run by the li wen institute, the vacancy rate was 18 per cent and the worst 35 per cent。
“we are also landlords, and renting from the owner after the retrofitting of the house is borrowed. So far, it hasn't come back. Interest is counting, and it's really stressful." according to li, the shenzhen long-lease apartments are being looted, and activities such as rent reduction, security deposit occupancy, and the free delivery of small household electricity have continued with little success。
In 2022, li wen planned to transform his enterprise. On the one hand, increased cooperation with business clients and a change in the service system to a model applicable to enterprise accommodations, such as increased car charter services, from which more fees are charged. This use reduces the risk of vacancies by reducing rents in exchange for stable lease periods; on the other hand, the acceptance of short-term tenants increases the mobility of the housing stock. Packing of currently vacant housing sources into special-price rooms is open to client groups who travel in depth and seek employment。
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Decrease in rental return
The shenzhen leasing market is becoming colder, with rent cycles longer and vacancy rates rising. For the majority of individual landlords, the pressure to repay the house has multiplied when it is empty。
At the beginning of november 2021, the shenzhen lake industry advocated that ling begin to send rental information on soybean petals, microbreds and idle fish. She purchased a room of approximately 38 square metres on the east gate street at a listing price of $3,800 per month。
Zhang xiaoling has calculated that a housing agency is required to pay a commission and that if a tenant is found on a social platform, a fee may be saved. The rent market was out of her mind and she had not received any advice for an entire month. In mid-december, zhang xiaoling entrusted his home to the real estate agency. Zhang xiaoling was informed by the real estate agent that the area had a production cycle of more than one month and that it was necessary to reduce the price if necessary to prepare for a protracted war. After a combination of considerations, zhang xiaoling lowered the listing price to $3,600 per month。
From mid-december until the present, the house has been shown no more than five times, and the intended tenants have been unable to “consider” it. Close to the end of the year, the number of tenant enquiries is decreasing and zhang xiaoling is ready to leave the house empty years ago。
“my house has been vacant for almost three months since the tenants left in november, at a loss of 10,000 people.” on 13 january, zhang xiaoling told the times reporter that she was a “rent loan” group and that she was under stress because the house was empty. After the calendar year, she will upgrade the house and lower the rent at 200 yuan/month, with a minimum psychological price of 3,200 yuan/month。
Owing to the high level of trade, the lake rock region has a large foreign population and a strong demand for leases, which is the region with the highest rate of return on rent in shenzhen. As a windfall in shenzhen's leasing market, lake ro faced a “priceless” dilemma, with rent rates in other districts being similarly under pressure. According to the december report on trends in the rental of housing in priority cities, released by the same city and tenant, the average rent in shenzhen for december was $5430 per month/month/sample; in addition to the 1. 2 per cent increase in the ring ratio for the regional rental of accommodation, there was a slight decline in the ring ratio for the rest of shenzhen。
House prices and rents fell, and shenzhen's return on rent fell to historical lows. Data from the shenzhen research centre show a return on rent of approximately 1. 14 per cent in shenzhen in december 2021, a downward trend since 2018。
The smoothness of the shenzhen leasing market is closely linked to the official tight-handed rent increase. Since 2018, shenzhen has introduced a pilot project to stabilize rental houses, proposed legislation to establish a reference price system for rentals, and many channels to control rent increases and to combat malicious price increases by landlords。
On 29 august 2018, the shenzhen housing authority indicated that it would launch a “stabilized rental commodity house” pilot to control annual rent growth of not more than 5 per cent through strict rent controls such as “one house at a price” and “one year at a rate” and that an online application for participation in the queue could be made for residents who had completed one year of deep social security coverage and had not purchased a house。
In august 2021, the standing committee on social construction of the shenzhen city people's congress organized the drafting of the regulations on social construction in the shenzhen special economic zone (draft for comments). The draft statement states that the housing construction sector in shenzhen city should regulate the rental market order by law, establish a reference price system for rental housing, guide the parties to rental housing to make reasonable pricing and regulate rent levels。
