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Streamlining the rental property market

By Wang Yeqiang | China Daily | Updated: 2017-03-03 07:38

The rental property market in Beijing has been warming up with the return of migrant workers after the Spring Festival holiday. The increase in house rent in the post-Spring Festival period is more than 10 percent this year, compared with 3 percent in the same period last year. The period immediately after Spring Festival in Beijing sees an increase not only in owner-tenant agreements but also house rent.

The rapid rise in housing prices last year played an important role in the unusual increase in house rent this year. When the real estate market is sluggish, more second-hand houses are offered for rent and prevent rent from rising rapidly. And if the real estate market is hot, more second-hand houses that otherwise would have been offered for rent will be sold, and as demand exceeds supply the rent rates will increase.

Housing prices in Beijing have risen sharply over the past two years, much higher than rent rates. So the recent sharp increase in house rent can also be regarded as a transmission effect of the rapidly rising housing prices.

Streamlining the rental property market

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