In the past few years, with the boom of the economy and the increase of population mobility, the rental market in first-tier cities has been in a state of short supply. However, the recent general decline in rents has shattered this pattern. According to the report released by the China Index Research Institute, the average rent of residential buildings in the country's 50 key cities in 2023 will be accumulated **03%, especially the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, led the decline in this round. Among them, the housing rent in Shanghai at the end of the third quarter was **2 quarter-on-quarter1%, year-on-year **29%；Housing rents in Beijing and Guangzhou fell by 1.QoQ in the third quarter28% and 132%；Housing rents in Shenzhen also fell quarter-on-quarter in the third quarter, with a decrease of 093%。
There are many reasons for the decline in rents. From the data side, the lack of rental demand caused by population movement is an important reason. As the mobility of the population decreases, so does the demand for renting. Especially in first-tier cities, the high cost of living and competitive pressure have caused many young people to choose to leave, which directly leads to the lack of demand in the rental market. At the same time, there is a certain relationship between housing prices and rents, with the adjustment of the real estate market, some landlords choose to ** real estate, which makes the rental market ** increase, further exacerbating the decline in rents.
In addition, the concentration of a large number of rental housing is also another important reason for the decline in rents. Taking Shanghai as an example, since 2017, Shanghai has sold 222 rental housing plots, with a total construction area of nearly 19 million square meters, providing more than 250,000 rental housing units. These rental housing projects are well-located and fair, and they are more favored by renters than those in the hands of individuals or second-hand landlords.
Falling rents will have an impact on both landlords and renters. For landlords, rent is one of the main incomes**, and the decline in rent directly leads to a decrease in income. Some landlords have had to reduce their quality of life and even face financial hardship. At the same time, landlords may reduce their investment and avoid overexpansion.
For renters, lower rents mean they can pay less on their rent, reducing their financial burden. This also helps to improve the quality of life for renters. However, an increase in the rental market also means more entry into the market, increased competition, and renters need to be more careful about choosing the right one for them.
The future trend of rents in first-tier cities is closely related to factors such as the economic situation and policy trends. From the current point of view, the economic development of first-tier cities is still stable, and the policy environment is relatively stable. As a result, rents in first-tier cities are not expected to fluctuate significantly in the short term.
In the long run, with the adjustment of economic structure and changes in population flow, there is still uncertainty about the rent trend in first-tier cities. At the same time, the regulation policy on the real estate market will also have an impact on rents. If we continue to increase our land holdings and promote the development of rental housing projects, it may further stabilize the rental market. In addition, if the economic situation improves and the income of businesses and individuals increases, rental demand may also pick up, which will boost the rental market.