China's Housing Rents Rise for Only Third Time in Two Years in March

(Yicai) April 8 -- Housing rents in key Chinese cities climbed last month, mostly driven by the country's first-tier cities, making it only the third month after July 2024 and February 2025 to log an increase over the past two years.The rent for residential properties in 50 key cities climbed 0.1 percent in March from the prior month, which was also the largest increase in 24 months, according to the latest data from the China Index Academy.The average monthly housing rent in the four first-tier cities -- Beijing, Shanghai, Shenzhen, and Guangzhou -- rose 0.3 percent to CNY73.21 (USD10.68) per square meter. The figure jumped about 0.4 percent in the former three, ranking among the highest increases among the 50 key cities.Areas where rents rise first mostly have relatively active development in key industries, Yan Yuejin, deputy director of the Shanghai E-House China Research and Development Institute, told Yicai. Residential communities closer to core industrial parks or with convenient commutes are more likely to experience increases, Yan noted.In addition, the stabilization of local home prices has created psychological expectations of imminent rent recovery, which is also one of the driving factors behind rent fluctuations, Yan pointed out.Beijing saw rents increase in all of its administrative districts except the four outer suburban districts, with those in Haidian, Changping, Tongzhou, and Daxing rising more than 0.5 percent and in Fengtai, Chaoyang, and Shijingshan between 0.4 percent and 0.5 percent. These districts share common characteristics, including strong industrial development momentum and a relatively high concentration of non-local residents."Rents have indeed risen, especially for properties with convenient surrounding transportation," a real estate agent in Beijing said to Yicai."Changes in rent reflect local industries and employment opportunities," Yan said. "However, overall, rents in key cities are expected to remain relatively stable, but prices for high-quality properties, particularly those with good renovations, are likely to slightly increase."In addition, the period following the Chinese New Year holiday, which fell in February this year, is a peak time for rental demand due to being a time when migrant workers return to cities, people move after changing jobs, and graduates start internships or work, according to a report from the China Index Academy.Given the ample supply of rentals, the average rent in key cities will likely remain largely stable over the coming months, analysts point out. However, the market is likely to continue exhibiting a pattern of "overall still under pressure, but intensified regional divergence," they added.Editors: Tang Shihua, Martin Kadiev