On December 23, the "2023 Blue Book on the Development of China's Urban Long-term Rental Market - "New Rental" of Urban Owners' Housing" jointly launched by Xinhuanet, Ziru Research Institute and supported by China Construction News was officially released (hereinafter referred to as the "Blue Book").
2023 Blue Book on the Development of China's Urban Long-term Rental Market" was released).
In recent years, the urban housing rental market has developed rapidly. On the one hand, the demand side is affected by changes in purchasing power, living concepts, marriage and childbirth intentions and other factors, and the number of renters has exceeded 2600 million, young people in first- and second-tier cities can accept rental housing for nearly 10 years, and the demand for quality rental housing continues to grow. On the other hand, according to a research report by the China Household Finance Survey and Research Center of Southwestern University of Finance and Economics, the total number of vacant houses in China's housing market is about 65 million. On the supply side, the idle properties of individual owners are waiting to be rented, and the second-hand houses are "sold and subleased", a large number of "non-subleases", and affordable rental housing have been completed and entered the market, which has promoted the continuous enrichment of the main body of housing rental supply and the continuous increase in the supply of various types of leases.
The Blue Book mainly focuses on the changes, preferences, and concepts of housing rental for decentralized individual owners and centralized institutional owners. According to the "Blue Book" survey, affected by the changes in supply and demand in the urban housing rental market, urban decentralized individual owners and urban centralized institutional owners are currently opening a "new rental" era of housing. 7% of owners are willing to entrust their houses to long-term rental agencies5% of the owners choose to renovate first and then rent;In the leasing process, urban landlords value customized rental income plans.
New changes in rentals: urban landlords are younger, 8After the proportion is exceeded
It is worth noting that the "Blue Book" shows that in the past three years, the trend of younger urban owners is obvious. At present, among the owners of first-tier and new first-tier cities, more than 40% of the owners are post-80s.
As the age of the owners tends to be younger, the rental market also ushers in the era of highly educated owners. Hangzhou has the largest proportion of undergraduate owners, more than 94%. Shanghai has the highest proportion of owners with graduate degrees, nearly 20%.
In terms of industries, manufacturing, Internet and finance have become the industries with the largest occupational distribution of urban owners.
Rent newPhilosophy7% of owners are willing to entrust their houses to long-term rental agencies
In the eyes of urban property owners, leasing is becoming a better way to preserve the value of housing assets, improve the liquidity and usability of housing. According to the data of the "Blue Book", more than 5 percent of the owners believe that "renting is an important way to realize the house" at this stage.
However, at the same time, due to the return of second-hand housing and the entry of rental housing into the market, the cycle of individual rental or traditional intermediary rental has become longer, which makes the cost of finding customers, vacancy costs and operating costs in the process of housing rental continue to rise. Therefore, long-term rental agencies that can provide professional rental management services and obtain sustained and stable income have become the first choice for owners to rent out their houses. According to the data, more than 7 percent of owners believe that the best way to rent idle houses is to "hand over to professional long-term rental agencies to operate". The reason is that the rental income of long-term rental institutions is stable, the large platform has trust guarantee, and can provide supporting services such as house cleaning.
In addition, in terms of urban centralized institutional owners, professional long-term rental institutions have also become important participants in new rental methods such as rental housing, commercial office building conversion apartments, and the exploration of rental housing on collective land. The "Blue Book" points out that professional long-term rental institutions can create apartment products that meet market demand from different asset affiliations, and output a complete set of project calculation plans and income expectation plans to institutional owners and investors. According to the data, 62% of investment institutions hope to entrust mature apartment brands to operate after acquiring property assets.
New preference for renting: 5% of owners choose to renovate first and then rent
As young people rent for longer and longer, everyone's demand for housing quality and supporting services is increasing day by day.
The Blue Book survey found that since 2020, urban renters have increased their attention to "housing quality, living experience, and rental term services" by 34%.
However, at present, about 40% of rentals in first-tier cities** have a significant mismatch with young people's expectations of high rental quality due to insufficient quality problems such as high age, outdated decoration and aging facilities.
How to increase the value of the house and rent it out quickly is a common concern of urban owners. According to the data, in order to obtain better rental income and shorten the rental cycle, more than 5% of urban owners believe that "renovation before renting" is an effective way to rent out.
New Guide to Hosting :The first of its kind in the industry"The Essential Guide to Rentals for Urban Homeowners".
When the core composition of the owner group gradually transitions to a young and highly educated group, their demand for efficiency and peace of mind is even greater, and the consensus that the rental market is moving towards "standardization and institutionalization" is further highlighted.
In this regard, Xinhuanet and Ziru Research Institute jointly released the industry's first "Essential Guide to Housing Rental for Urban Owners" with the intellectual support of China Construction News, including five steps: clarifying rental needs, assessing housing status, screening long-term rental agencies, formulating renovation plans, and customizing income plans, so as to provide specific operation methods for owners to rent houses and help urban owners rent out efficiently.
Li Daokui, dean of the Institute of Chinese Economic Thought and Practice at Tsinghua University, said that in the first-tier and new first-tier cities, the net inflow of population is large, and the demand for rental housing is large, to encourage individual landlords with idle houses to entrust their houses to professional long-term rental agencies for transformation and upgrading rental. The role of stabilizing the market, and then improving the living happiness of new urban citizens and young people.
According to the survey data of third-party institutions, in recent years, China's housing rental market has continued to be stable, and from 2022 onwards, it will show a rapid growth trend and continue to be expected to improve. At a compound annual growth rate of 93% calculation, it is expected that by 2027, the size of the housing rental market will reach 28 trillion. When the industry has entered an unprecedented period of rapid development, only professional quality can continue to meet the expectations of tenants, and at the same time ensure the housing asset management needs of owners and help the standardized development of the industry.