Monthly Rent in Beijing Soars to Skyscraper Heights
Monthly residential rent in Beijing rose a wallet-shrinking 25 percent last year, causing concern for the city's millions of occupants. The data comes from property search engine Zhuge, who released their research report into rental costs earlier this week, finding that July's rental costs were 25.6 percent higher than the same period last year. But that's not the worst of it, with some apartments in the Central Business District seeing rises as high as nearly 40 percent, meaning that a 56-square-meter one-bedroom apartment in CBD now costs RMB 4,960 a month on average, an increase of 37.4 percent compared to a year ago.
The rapidly increasing rent rates are putting a strain on the wallets of Beijingers
Property agencies that control Beijing’s rental market through sublease contracts are partly to blame for the soaring prices, according to The Financial Times. This is not news to locals, who have experienced a constant raising of rent for years on end, with the average monthly rent rising 2.63 percent. According to the Global Times, RMB 91.5 per square meter was the going rate in Beijing as of July, with a 1980s-built 50-square-meter property in Xuanwumen in Xicheng, west of Qianmen, costing RMB 8,000 a month.
Even those on the outskirts are affected; albeit not as much as central-based tenants
Real estate agencies are promising tens of thousands of new rental properties entering the market, and for the current rent levels to be maintained. However, Chinese households tend to prefer ownership over renting, which may put a dent in the real estate agencies' plans to rein in rising rents. Major real estate agency 5i5j (Wo Ai Wo Jia) saw their vice-president step down on Monday in controversial circumstances, just days after he admitted that several letting agencies were artificially pushing rents up as they competed to increase their property portfolios. Despite the pledge of 120,000 housing units to be built by property operators in Beijing alone, real estate agencies are increasingly at odds with the public.
As we reported last weekend, the most expensive areas in Beijing to rent a room or apartment are Dongcheng and Shunyi, which have seen a 10.5 percent and 10.7 percent rent increase, respectively.
Photos: ChicagoTribune.com, Reuters.com, HaroldRossfineart.wordpress.com
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