It is getting harder for tenants in China’s large cities to meet their rising rental payments. In 11 Chinese cities, housing rents went up by 20% from the summer of 2017 to 2018. In Beijing, the rental jump of 21.16% between 2017-18 stands at a high contrast between a rise of only 3.12% in the previous year. One of the reasons has been stated as the fierce competition between rental agencies, which rents from the owners, renovates the apartment and then rents it out in the market at a much higher price.
Beijing’s real estate agency association has recently announced that they will add 120,000 apartments to stabilise the market. But this one-time increase of rental stock is insufficient to safeguard rental housing. Chinese cities require stricter guidelines and policies for capping rental prices. Read more..