Fang man tao 2022/10/25 analysis of the current market situation and prospects for development in the rental sector
What are the prospects for the rental sector? A rental is an act whereby the lessor (usually the owner) rents the house to the lessee, who pays the lessor the rent. On 1 september this year, the beijing municipal housing rental ordinance was introduced, which provides for “separation” of rents and non-refundable deposits by “black agents”。
Analysis of the current situation in the rental sector
As the country grows urbanized, a great deal of activity has made rental housing a rigid demand. According to overt data, high prices of housing in hot cities and economically concentrated cities and tougher purchase restrictions have also led to increased demand for rental housing. Shenzhen, for example, registered an 8. 2 per cent increase in fixed asset investment in 2020 over the previous year. Of this, investment in real estate development grew by 16. 4 per cent to $35. 625 billion, while investment in non-real estate development grew by 2. 3 per cent. In terms of sub-investors, investment in the state economy grew by 13. 0 per cent, private investment by 14. 5 per cent, investment in the economy of hong kong and australia fell by 17. 7 per cent and foreign investment by 14. 3 per cent. Investment in real estate development in shenzhen city reached its highest level in recent years in 2020 in terms of the scale of investment, but after entering 2021, it became a turning point for real estate investment in shenzhen city。
Under the shenzhen's “1355” lease supply scheme, shenzhen's city will receive no less than 1 million (one unit) of the villagers' own houses or communal property during the “135” period; no less than 100,000 housing units in state-owned rental enterprises; and 66,726 public rental housing units。
Now that our house prices have reached the “era of a thousand dollars”, as our mobile population has grown, so has the demand for more than half of the people working and living in the field, the number of renters has increased, and the number of renters in urban areas has increased overall. Despite the fact that the number of renters grew at zero in 2020 as a result of the epidemic, the number of renters in our cities continued to rise to around 230 million in 2021, an increase of 4. 5 per cent over the same period, as domestic workers resumed their work。
In the first half of 2020, the top 10 brand apartments in shenzhen opened a total of 383 apartments, accounting for 74 per cent of the city's established businesses; of these, the first three brand apartments are berths, strawberry communities, magic apartments and fun apartments. Among them, the berths were at the top of the list of 138 shops。
With the holding of the central economic work conference and the national binational meeting and the launch of the 14th five-year plan, the state has proposed a “no-false-purchase” scheme and our “housing lease” has risen to the level of state planning. On the morning of 5 march 2021, premier li keqiang of the state council, in his report on the work of the government, referred to “a real increase in the supply of secure rental housing and community-owned housing, standard growth of the long-term rental market, reduction of the burden of rental housing taxes and charges, and the best efforts to help new citizens and young people alleviate their housing difficulties”. In june, the office of the state council issued the " vision on the accelerated growth of secure rental housing " , which first understood the concept of a housing security system at the national level; in december, the ministry of housing and construction published the circular on the prevention and control of common quality of secure housing (the " final draft " ), which aims to further improve the quality of works by implementing the resolution on the promotion of secure housing。
Analysis of the future of the housing rental sector
At the national policy level, the housing rental sector has seen an era of better growth as a result of increased support for the housing rental sector, the tightening of regulatory policies in the sector, and the inflow of capital. More and more participants are entering the industry and market dynamism is accelerating。
In terms of policy supply, in 2021, the 40 municipalities of the country planned to mobilize 936,000 new guaranteed rental housing units, and between january and october, work started on 770,000 units, representing 82. 2 per cent of the total. More than 10 cities in changsha, chengdu, qingdao, zhinan, nanjing, wuhan, ningbo, nanning and hangzhou have now completed their annual plans。
In addition, the large volume of rental housing and the strengthening of the regulation of the housing rental market will require greater enforcement of the law by all sectors of the local community, increased accountability, community on-the-ground mapping, the establishment of management desk accounts and enhanced dynamic control。
In terms of industry development, the current model for the development of the leasing sector remains relatively uniform. At the same time, professional services are not adequately provided because the professional certification and training system for practitioners is still inadequate. The institutionalization and professionalization of the housing rental market should be further promoted, the training of professionals involved, the establishment and improvement of industry standards in terms of product structure, service experience, post-lease services, etc., and the advancement of the housing rental sector towards standardization, refinement and professionalization. For more up-to-date professional analysis, click on the in-depth study of the rental industry 2022-2027 and future development trends report of the china-china industrial research institute。
