Trillion Scale: Who Will Domain Residential Rental Market?
“Rent and Purchase” is recognized as the new mainstream in long-term development of China’s real estate market. Supported by government policy and emerging demand, residential rental market is becoming one of the most promising industry with the least uncertainty in China.
According to report from Lianjia Research, currently China’s residential market scale has expanded to 1.1 trillion RMB, estimated to be 2.9 trillion in 2025, over 4.6 trillion till 2030. Based on the data from Orient Securities, rental consumer population will reach 270 million, creating a market of 4.2 trillion RMB.
Peoples’ attitudes to rental residence are also changing. It’s showed that over 50% of the renters would like to pay more attention to rental housing. Nearly 80% of them esp young renters acknowledge that they would keep renting house if it’s of long leases and good quality.
This tremendous expansion not only attract giants in real estate industry like Vanke, World Union, Greenland and Longfor, but also participators from other industries like Alibaba, Lianluo Interactive and China Unionpay.
Real Estate Giants
1.Vanke put long-lease apartment as an important point, mainly on core cities.
2.World Union already have over 20,000 rooms signed out currently among key cities including Guangzhou, Wuhan and Hangzhou.
3.Greenland will also start 20 long-lease apartment projects at city cores or transportation centers as one of the main expansions this year.
4.Longfor have announced their entry to the new sectors on its mid-term release conference in 2016 and plan to set up 300 long-lease apartments and 20 united offices within 3 years.
Participators from Other Industries
1.Alibaba plan to establish the first smart platform for residential renting in China, which comes online within 50 days after signing strategic cooperation agreement with Hangzhou government.
2.Lianluo Interactive release their plan early this year that spend 230 million RMB to purchase 51.33% equity of Huizhaofang, a residential renting platform, to enter the market.
China Unionpay have signed cooperation agreement with Shenyang house property bureau and Wuhan housing security and housing authority on residential renting platform and it’s expected to start service among all 12 pilot cities this year.