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Shanghai Home Renting Up As Costs Deter Buying

Mon, 03/08/2010 - 09:56

Home renting activities in Shanghai rose in February because buyers were put off by high apartment prices and also on a recovery in demand as migrant workers returned after the Spring Festival holiday,

Across the city, the volume of rentals, by units, rose one fifth month on month, with most deals, 24 percent of the city's total, concluded in Pudong New Area, 10 percent in Baoshan District and 9 percent in Minhang District.

However, different areas recorded a mixed picture for rents with the city's average shedding 11 percent from January to 36.90 yuan (US$5.40) per square meter per month in February.

Shanghai's overall leasing market rebounded last month because more people temporarily gave up their plans to buy homes and rented apartments instead amid record high housing prices.

Moreover, migrant workers returning to the city also helped boost demand.

Rent cuts by some owners of high-end properties and more renting deals involving mid-to-low class apartments contributed to the drop in average rent last month
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The average price of new homes, excluding those designated for relocated residents under urban redevelopment plans, remained at a high of 19,696 yuan per square meter in the city in February.