November 2023 Asia China Long term Rental Apartment Development Report

Mondo Sports Updated on 2024-01-31

WeChat *** Space Secret Detective" (ID: mespace007), author: abndata.

Overview of the condominium market

01 Development trends of the global apartment market

In the U.S., the seasonal slowdown in the rental market continued in November, with the national median rent down 0., according to the Apartment List National Rent Report9% to $1,340. This marks the fourth consecutive month of negative rent growth, while low apartment demand during the winter holidays is likely to continue to push rents down for another month or two.

Among the 100 largest cities in the country, 89 cities saw a month-on-month decline, and 68 of them saw a year-on-year decline. Currently, the largest year-over-year decline is in Oakland, California, with a ** drop of 7 compared to November last year9%。

In the UK, the average rent for new leases in the UK was £1,279 in November 2023, according to the Homelet Rental Index data. The average** in the UK, excluding London, is now £1,066. Among them, Scotland has seen the largest increase in rents, with **963% to £922. The North East of England is the cheapest region in the UK to rent, with a monthly rent of just £665.

On the Canadian side, according to RentalsAccording to data released by CA and Urbanation, in November, apartment rents in Canada averaged $2,125, a year-over-year increase of **112%。Whereas, rents for all residential property types averaged $2,174, close to October's all-time high of $2,178 and down 02%。Asking rental prices rose 8 percent year-on-year in November4%, compared to 9 per year in October and September9% and 111%。Canada's annual rental growth slowed for the third month in a row.

In November, the annual growth rate of rents for studio apartments accelerated to 121% ($1,552 average), compared to an annual growth rate of 12 in October and September0% and 113%。Annual rental growth for one-bedroom apartments remains the strongest of all unit types at 136% ($1,943 on average), despite the same as October 141% and 15 in SeptemberThe annual growth rate of 5% has slowed down. Annual rental growth for two-bedroom apartments has also slowed compared to recent months, from 13 in September1% and 11 in October8% fell to 112% ($2,324 average). Of all the unit types, three-bedroom rents grew the most at 91% ($2,567 on average).

02 Development of the Asia-Pacific leasing market

In New Zealand, rents** remained stable for the sixth consecutive month, according to Trade Me Property's November Leases** Index. Since June, the national median weekly rent in AOTEAROA has remained at $620 in November. Despite the uncertainty surrounding interest rate changes, rents have remained relatively stable. However, compared to November last year, the national median weekly rent was 69%。

Among them, Auckland decreased slightly compared to October. Tāmaki Makaurau recorded 2The 2% drop brought the median weekly rent to $660. North Shore (-2.)8%), Franklin (-23%) and the City of Oakland (-08%).

In Japan, according to the latest data released by Kantei, a Japanese real estate research company, apartment rents in the Tokyo metropolitan area in November were **02% to 3,547 yen, the first time in three months**. At the same time, even with the average age of a slightly older building, the rent level in Tokyo's 23 wards still leads the way, and it is currently as high as 4,236 yen per square meter.

In South Korea, the R114 analysis of South Korea's real estate R114 analysis of the Seoul apartment rent (excluding all rental houses) published on the official website of the Ministry of Land, Infrastructure, Transport and Tourism shows that the average monthly rent of apartments in Seoul is 1.02 million won from January to November this year, compared to 120,000 won (13.) two years ago in 2021 (an average of 900,000 won).3%), compared with last year (980,000 won)**40,000 won.

In addition, the monthly rent of an apartment in Seoul under 1 million won has increased from 71 in 20217% decreased to 68 last year3%, and as of November this year, it was further reduced to 66%. In contrast, the monthly rent of more than 1 million won in Seoul apartments from 28 in 20213 increased to 31 last year7%, which has increased again to 34% this year.

03 Development of China's leasing market

In November, the trend of rents in first- and second-tier cities across the country was dominated by an increase. According to the data of the national ** network, 7 of the top 10 cities in terms of rents rose and 3 fell. In November, only 3 cities had a month-on-month increase in rents, of which Hangzhou saw the largest decline, with a month-on-month decrease of 429%。In addition, 6 cities have the largest proportion of rents, with Guangzhou having the largest proportion of rents, increasing by 12 month-on-month8%。

According to the November data of the national housing price network, the median rent in the country was 1,900 yuan, a year-on-year decrease of 5%. Judging from the trend of urban rent changes, December is still the off-season for the rental market, and the rental demand is likely to weaken, and the rent** may still fall in the future.

04 Leasing enterprises signed contracts and opened dynamics

Opening. The first store of Jingli Apartment Hotel in Wuhan will open soon. The apartment hotel is located in the core business district of Hankou, Wuhan, and provides a variety of guest room types and customized supporting facilities for the community. In addition, it is designed to create an exclusive apartment social circle for residents, integrate local characteristics to hold various rich social activities, and is committed to creating a high-end urban core business space integrating life upgrading, cultural exchanges, commercial shopping, and entertainment consumption.

Frasers Hospitality Singapore opens its 6th serviced apartment. Managed by Frasers Hospitality, Fraser Residence River Promenade is located on the Singapore River, part of the Frasers Property Singapore complex and the Group's sixth serviced apartment in Singapore. The condominium offers 72 units ranging in size from 258 to 516 square feet.

Woqu International Community Jinan Yuhan City store opened. The project is located in Yuhan City, Shengjing New Town, Zhangqiu District, Jinan City, which is jointly built by Woqu brand and rail transit group, and is a complex community integrating TOD transportation organization and residential and commercial functions. The Yuhan City project covers a total area of about 677 acres, including land for commercial service facilities and residential land, with a total construction area of about 1.16 million.

China Resources Youchao's new products entered Pudong New Area, Shanghai, with 2,647 sets. Located in the central part of Pudong New Area, Shanghai, the largest rental community "Huizhi Youchao International Rental Community" is jointly built by "Youchao", a long-term rental apartment brand under China Resources Land, and Pukai Group. The total construction area of Huizhi Youchao International Apartment Community is about 1560,000 square meters, a total of 2,647 sets.

Ruibeiting Apartment Hotel is the first to settle in Xujiahui, Shanghai. Invested by Sirui Group and jointly operated and managed by Sirui Group and Huazhu Chengjia, the "GROW Ruibeiting Apartment Hotel" will be opened soon, which is the first heavy asset investment of Rui Group in the field of long-term rental apartments in Shanghai. The project is located at the junction of Xuhui District and Huangpu District in Shanghai, and adopts the investment strategy of "asset acquisition, value-added transformation, holding and operation, exit", and the asset acquisition comes from the revitalization of the developer's non-performing assets.

Shanghai's first cultural talent apartment project was delivered. The "Orion" project in Hongkou District, Shanghai's first cultural talent apartment, was officially put into use. The project is jointly built by the Propaganda Department of the Shanghai Municipal Party Committee and Hongkou District. The total area of the Orion Cultural Talent Apartment Park is 10,71015 , including 234 high-quality rental housing.

Build. With an investment of RMB3.7 billion, the Sino-Singapore Guangzhou Knowledge City Super Neighborhood Centre started construction. The Neighbourhood Centre is derived from the concept of community service in Singapore. The Sino-Singapore Guangzhou Knowledge City Super Neighborhood Centre project is located in the southern starting area of SSGKC, west of Chuangxin Avenue and east of Bowen Road, with a total land area of approximately 70,000 square meters. According to the plan, the total construction area of the super neighborhood center is about 300,000 square meters, with a total investment of nearly 3.7 billion yuan. At present, SSGKC has two neighbourhood centres: the Chengnan Neighbourhood Centre and the Second Neighbourhood Centre.

Ascott Chengdu's first dual-brand project is about to be launched. Ascott China and Chengdu Eastern Group will jointly launch the first dual-brand project – Citadines Link Chengdu Eastern New Area and Chengdu Yayu Apartment (Eastern New Area) will be opened soon. The project is located in the core area of Sancha TOD in Chengdu Eastern New Area, close to the financial innovation center of Chengdu Eastern New Area. Citadines Link Hotel Chengdu Eastern New Area has 146 rooms and Elegant Residences Chengdu Eastern New Area has 600 units.

Agency. Hainan Hongyuan Serviced Apartment signed a contract with Ascott. The Hainan Free Trade Port Promotion Conference was held in Singapore. At the meeting, Hongbao Group's Hainan Hongyuan serviced apartment project signed a strategic cooperation agreement with Ascott China. It is reported that Hongbao Group's Hainan Hongyuan serviced apartment project is located in Haikou Jiangdong New Area Headquarters Economic Zone (ecological CBD), with a total area of 7,430 square meters and a total construction area of about 30,000 square meters, which can provide 261 rental apartment housing after completion.

Lehu Apartment signed a contract with Beijing Wendu Water City Huwan Hotel. Beijing Wendu Water City Lakeside Hotel West District has joined hands with Lehu to jointly build a high-quality apartment hotel project, which is scheduled to officially open in early 2024. Huwan Hotel West District is located in Wendu Water City Business District, Changping District, covering an area of 172 hectares with a total construction area of 520,000 square meters, with 274 guest rooms.

Ascott Jinan's first project, Yayu Apartment, was officially signed. This is the first project jointly launched by Ascott and Jinan Pioneer Investment Group following the strategic cooperation reached at the 24th Plenary Meeting of the Singapore-Shandong Economic and Trade Council. The project is located in the start-up area in the north-central part of Jiyang District, Jinan, and is expected to be put into operation in 2024. Including studios, one- and two-bedroom suites, the project has a total of 2,052 apartment units.

05 Dynamics of rental housing projects in various places

In November, Shanghai, Zhengzhou, Beijing, Taiyuan and other places have released the preparation projects and the latest progress of affordable housing. Among them, the first rental housing REITs of state-owned enterprises in Shanghai have also been accepted. The preparatory work related to the construction of rental housing is accelerating.

First, Shanghai's "14th Five-Year Plan" has been 26 rental houses70,000 sets. Up to now, Shanghai has built and raised a total of 45 types of rental housing30,000 sets (rooms), *2670,000 units (rooms), respectively completing 75% and 67% of the total at the end of the 14th Five-Year Plan.

Shanghai Chengbao rental REIT was accepted, involving 2,953 units of two projects in Yangpu**. Shanghai Chengtou "Chengtou Kuanting" affordable rental housing REIT was officially accepted by the China Securities Regulatory Commission, which is the first rental housing REIT of a state-owned enterprise in Shanghai, and it is also the largest rental housing REIT product in the market.

The second is to win the bid for the Zhengzhou rental housing project, with a volume of 15,000 rooms. Zhengzhou Chengfa Anju Co., Ltd. has carried out strategic cooperation with Lehu, Bairuiji and Avocado, three leading enterprises in the national housing rental industry, to jointly operate and manage the Meiyu series of talent apartments, with a total project volume of 15,000 units. According to the long-term cooperation plan of all parties, in the near future, various internal resources will be integrated for the four newly opened projects of Longxi, Jinguan, Jiayuan and Haitang, relying on the four store projects to temper the team's service capabilities, improve the occupancy rate and reduce the vacancy rate.

Third, Beijing will complete the construction of rental housing in 2022 15150,000 sets. The Blue Book of Social Construction: Analysis Report on Social Construction in Beijing in 2023 jointly released by Beijing University of Technology, the Social Work Committee of the Beijing Municipal Party Committee, the Beijing Civil Affairs Bureau, and the Social Sciences Academic Press pointed out that in 2022, Beijing plans to raise and build 150,000 units (rooms) of affordable rental housing, and the actual construction and raising of affordable rental housing will be 15150,000 sets (rooms), exceeding the original plan for the whole year. As of the first quarter of 2023, Beijing has built and raised 21,381 affordable rental housing units, completing 27% of the annual task this year.

Fourth, Taiyuan's "14th Five-Year Plan" plans to raise rental housing 450,000 sets, 82% completed. During the "14th Five-Year Plan" period, Taiyuan City plans to raise affordable rental housing 450,000 sets (rooms). Up to now, Taiyuan has raised 36,868 units (rooms) of affordable rental housing. Since the "14th Five-Year Plan", the annual targets and tasks of raising affordable rental housing in Taiyuan have been completed, of which 3,148 units (rooms) have been raised through new construction by enterprises, 27,404 units (rooms) have been raised by the Municipal Rental and Construction Investment Company through targeted purchases, 4,704 units (rooms) have been raised through market purchases, and 1,612 units (rooms) have been raised through reconstruction projects.

List release & analysis

ABN index analysis

Summary: In November 2023, the search index and new ** index of the apartment market were stable and slightly decreased, and the average monitoring score reached respectively. 57。

Search index: The top 5 search popularity are Ascott, Lehu Urban Youth Community, China Resources Land Youchao Apartment, Longfor Guanyu, and Vanke Boyu. This month's search popularity is mainly focused on new store opening signing, brand dynamics, policy dynamics, etc., such as Ascott Chengdu's first dual-brand project is about to be launchedLehu Apartment signed a contract with Beijing Wendu Water City Huwan Hotel. Shanghai's first cultural talent apartment project delivery and other industries on the list of hot search events.

*Index: In November, the main scores of the ** index were concentrated in the publicity of the official website of the public, vertical ** publicity and the publicity of the head financial print media, and the top 5 brands with scores were Landsea Residence, Jingli Apartment Hotel, Ziru Rental, Rubik's Cube Apartment, and China Resources Land Youchao Apartment. For example, Vanke Boyu achieved profitability in the year;Reports such as the opening of Frasers Hospitality Singapore's 6th serviced apartment are the focus of publicity.

New ** Index: The main scores of the new ** index are concentrated in the construction and preparation of affordable rental housing at the end of the year in various provinces and cities, and the multi-regional layout of apartment brands. The top 5 indexes are WeChat, Douyin, Xiaohongshu, Weibo, and Station B. For example, in the new field, the communication analysis index has increased rapidly.

Investor index: In November, the apartment market was generally stable and declined, the rent range of major cities was stable and declined, investor confidence remained stable, and the investment index fell slightly.

Comprehensive analysis

In November, a number of apartments and state-owned enterprises joined forces to jointly build an international apartment community project. The number of apartment projects in cooperation with state-owned enterprises is gradually increasing, and state-owned enterprises are also taking this opportunity to accelerate the layout of the long-term rental apartment market.

The Huizhi Youchao International Apartment Community Project, which opened in November, is the first project cooperated by China Resources Land's long-term rental apartment brand "Youchao" and Pukai Group, with a total construction area of about 15With 60,000 square meters and a total of 2,647 units, it is the largest rental community in the central part of Pudong New Area, Shanghai.

The Woqu International Community Jinan Yuhan City store, jointly built by the Woqu brand and the rail transit group, opened in November. The project is located in Yuhan City, Shengjing New Town, Zhangqiu District, Jinan City, with a total area of about 677 acres, including land for commercial service facilities and residential land, with a total construction area of about 1.16 million.

Leasing Brands Accelerate Expansion in Asia-Pacific The leasing market in the Asia-Pacific region has always been highly active, attracting the attention of many international apartment brands. In November, two more apartment brands announced their expansion in the Asia-Pacific region, further deepening their market presence in the region.

Frasers Hospitality Singapore opened its sixth serviced apartment, marking the Group's sixth serviced apartment in Singapore. Managed by Frasers Hospitality, Fraser Residence River Promenade is located on the Singapore River, part of the Frasers Property Singapore complex and the Group's sixth serviced apartment in Singapore. The condominium offers 72 units ranging in size from 258 to 516 square feet.

On November 7, residential leasing brand We**e Living announced its entry into the Japanese market. With the acquisition of nine properties in the capital** of Japan, the brand will inject new impetus into the local rental market, offering a total of 352 new residential properties. Following the expansion into Hong Kong and Singapore, Japan is the third market for We**e Living's expansion in the Asia Pacific region, and the Group is accelerating its expansion in major cities such as Tokyo and Osaka, and is expected to announce more plans for property acquisitions in Japan in the coming months.

In November, a number of apartment brands announced their layout in East China, mainly in Jinan and Shanghai, with a total of 4 new projects.

One is Jinan. The project is the first project jointly launched by Ascott and Jinan Pioneer Investment Group after the strategic cooperation reached at the 24th Plenary Session of the Singapore-Shandong Economic and Trade Council. The Yayu Apartment project is located in the start-up area in the north-central part of Jiyang District, Jinan, and is expected to be put into operation in 2024. Including studios, one- and two-bedroom suites, the project has a total of 2,052 apartment units.

The Woqu International Community Jinan Yuhan City Store, jointly built by the Woqu brand and the Rail Transit Group, was officially opened in November. The project is located in Yuhan City, Shengjing New Town, Zhangqiu District, Jinan City. It is a complex community that integrates TOD transportation organization and residential and commercial functions. The project covers a total area of about 677 acres, including land for commercial service facilities and residential land, with a total construction area of about 1.16 million.

The second is Shanghai. Huizhi Youchao International Apartment Community, located in Pudong New Area, Shanghai, is the largest rental community in the central part of Pudong New Area. It is jointly built by China Resources Land's long-term rental apartment brand "Youchao" and Pukai Group, with a total construction area of about 1560,000 square meters, a total of 2,647 sets.

Ruibeiting Apartment Hotel is the first to settle in Xujiahui, Shanghai. The project is invested by Sirui Group, jointly operated and managed by Sirui Group and Huazhu Chengjia, and is the first asset-heavy investment of Rui Group in the field of long-term rental apartments in Shanghai. The project is located at the junction of Xuhui District and Huangpu District in Shanghai, and the asset acquisition comes from the revitalization of the developer's non-performing assets.

Apartment projects in the bulk transaction market continue to be low According to the monitoring data of the Asia Travel and Lodging Big Data Research Institute, the transaction volume in the bulk market in November is still at the low level in recent years.

In November, the trading activity of the bulk markets in Beijing, Shanghai and Shenzhen all decreased significantly compared with the same period last year, of which Shenzhen had 0 transactions in November, which also shrank to a certain extent compared with the same period in 2021. At the same time, Guangzhou had only 2 in NovemberThe transaction scale of 6.7 billion yuan is at a low level. In September, the bulk market limited and rebounded slightly, but the market heat fell again in the past two months, and only 1400 million yuan, the market wait-and-see sentiment is strong. In addition to the first-tier cities, Chongqing, Hangzhou, Ningbo and other cities are relatively active.

In addition, in terms of transaction size, the total transaction value of bulk properties in Chinese mainland in November 2023 was 6.8 billion yuan, down 73 percent from the same period in '226%, unchanged from the previous month. At the same time, the total number of transactions was 14, a decrease of 33 compared with the same period last year3%, the scale of bulk asset transactions is still hovering at a low level. Despite a brief market recovery in September, the trading market is still in a relatively weak state on the whole, and buyers are still cautious in their investment attitudes.

According to the relevant statistics of CRIC in November, the property types are diversified, with office buildings and commercial buildings being the core assets of transactions, and the property types of large transactions in the third quarter still maintain a diversified development trend. Among them, office transactions still maintained the lead, with a total of 8 transactions in the third quarter, accounting for 25%. Typical projects include COFCO Land Plaza, Huayue Center, Block B, Aoyuan Beijing Canaan Building, etc., and real estate companies are one of the main transaction partners in office transactions. This was followed by hotels, commercial and residential, with 16% of the total transaction share, tied for second place. Condominium transactions, accounting for only 6%.

The top long-term rental apartment brand achieved profitability In November, the head apartment brand basically achieved profitability and showed a growth trend. At the same time, the brand reshuffle has intensified, and the profitable brands are concentrated in the top 30 apartment companies.

On November 6, Vanke's management said that Vanke Boyu is expected to achieve overall profitability in 2023. According to the latest statistics, the long-term rental business continues to maintain the first place in the industry in terms of scale and efficiency, achieving an operating income of 25300 million yuan, in September, the cumulative net profit of equity returned to positive, and a total of 22 long-term rental apartments are currently operated and managed90,000 rooms, with an occupancy rate of 944%。

According to the data disclosed in Vanke's latest quarterly report, at the end of the third quarter, there were 9 of the leases managed by the park050,000 units were included in affordable rental housing, compared with 4280,000 units, an increase of 11145%, accounting for 50% of the number of rooms opened28%, accounting for 38 of the number of rooms under management52%。At the same time, the data of Boyu in terms of customer acquisition through its own channels continued to be optimized. 85% of the customers of the five self-owned channels of Boyu come from these five channels, and the dependence on external parties is reduced.

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