In the past two years, China's housing leasing market has entered a period of rapid development.2018 saw the supply of leasing-related land speeding up and the scale of supply further expanding.

The 2018 Long-Term Rental Apartment Market Annual Report (hereinafter referred to as the Annual Report) released by the China Index Research Institute (CIRI) shows that the supply of land for housing leasing is increasing year by year. Since the first leasing-related land was sold in Beijing in November 2016, only Beijing sold 4 pieces of related land/500,000 sq m in 2016. 176 pieces of such land/5.39 million sq m were sold nationwide*** in 2017. 142 pieces of such land/6.47 million sq m were sold in 2018*** in total, and the planned built-up area exceeded the scale in 2017.

Cities Increase Supply of Rental Land

The Annual Report said that the housing rental market developed rapidly in 2018, and cities with strong rental demand, such as Beijing, Shanghai, Guangzhou and Hangzhou, continued to increase the supply of land related to leasing; in addition, cities such as Hefei, Nanjing and Wuhan also joined in launching such land in succession. From November 2016 to December 2018,*** 22 cities have transacted lease-related land,*** totaling 322 transactions, which can provide about 12.37 million square meters of rental housing. Among them, Shanghai, Hangzhou and Beijing are leading in terms of transaction scale, with 3 cities accounting for about 60% of the total transaction area of 22 cities,70%-80% of the enterprises have layouts in the second and third tier cities.

According to the data of China Index Research Institute, from November 2016 to December 2018, Shanghai ****counted 83 cases of leasing-related land transactions/3.08 million square meters, the area of the country's first; Hangzhou ****counted 80 cases of leasing-related land transactions/2.17 million square meters, the scale of the country's second only to Shanghai, second; Beijing leasing-related land transactions followed Shanghai, Hangzhou, ****counted 36 cases/ 1.9 million square meters, ****counted 36 cases/ 1.9 million square meters, the area of the country's first. *** Counting 36 cases/1.9 million square meters, the area ranked third in the country.

Shanghai pushes a lot of low-priced rental land

While the supply of rental-related land is speeding up, some cities are sparing no effort in stimulating the healthy development of the housing rental market, and guiding real estate enterprises to make an effort to develop the housing rental market with obvious intentions.

Shanghai pioneered the launch of a large number of low-priced pure rental land in the country, for example, in November 2016-December 2018, Shanghai *** counted the transaction of rental-related land 83, 3.08 million square meters, the area of the country's first, of which 47 plots of land directly clear part of the land use of rental land, and the requirement of the bidders shall be 100 percent of the self-holding 70 years. The price of this kind of pure leasing land is significantly lower than the surrounding, the price is only about 5,000 yuan / square meter, is the price of the surrounding 1/3-1/6. Pudong New Area, Xuhui District, Songjiang District, the three districts of the leasing land area accounted for the city's total leasing land transactions accounted for 56% of the proportion of leasing land is the main gathering area of the leasing land, especially in the Pudong New Area, the transaction of 19 / 1.13 million square meters, the scale of a significant leader in the other districts.

In addition to the purely rental land launched in Shanghai, Beijing launched collective construction land, and Hangzhou launched land for talent rental housing. China Index Research Institute believes that the new policies of pure rental land, collective construction land, and land for leased housing for talents will continue to be the mainstream mode of supply, and the relatively low price of such land is a strong guarantee for the healthy development of the rental housing market, which is expected to further increase its share.

More companies enter the field of long term rental

Now, the rapid capture of the market is the main strategy of the enterprise, expanding the scope of the city layout, strengthen the key cities in-depth cultivation, enrich the product line, etc. are all manifested in the enterprise to actively capture the market of the force of action.

Currently, the layout of the enterprise has been spread throughout the country's major key cities, product coverage of gold-collar, white-collar, blue-collar and other types of groups.

Chinese Index Research Institute analysis pointed out that with the development of the rental market more and more mature and people's awareness of renting continues to change, the future of long-term rental apartments will be developed in more cities. And with the enterprise to the customer base of the excavation, the product will also be more rich and diversified, at present China's leasing market is still in the early stage of development, the difficult problem of profitability is still plagued by all kinds of enterprises the primary problem, light assets, medium assets, heavy assets and other different operating modes corresponding to a different profit model, and its mechanism for expanding the profitability of the significant difference.

It is understood that at present, the first-tier and strong second-tier cities with large population flow, development potential and strong demand for rental housing are the focus of enterprise layout. According to the statistics of China Index Research Institute, Beijing, Shanghai and Hangzhou are the three most popular cities for enterprises to lay out their long term rental business, and 70%-80% of the typical enterprises have layouts in these three cities. In addition, Guangzhou, Shenzhen and Nanjing are also hot cities for enterprises, and major provincial capitals also have certain enterprise layouts. Overall, the Yangtze River Delta, Beijing-Tianjin-Hebei and the Pearl River Delta are hot areas, especially the Yangtze River Delta is the most hot.

Products, to create a rich product line covering multiple categories of people is the **** the same characteristics of the leading enterprises. Rich product types to meet the needs of all types of people, is the basis for the development and growth of leasing enterprises to occupy a greater share of the market, but in the early stages of development of the current market, most companies cut into the market from the main population of young white-collar renters to start, and quickly seize the market in addition to speeding up the city layout, the research and development of more product types to meet the needs of multiple types of people renting is an important way of business expansion.

Guo Yi, chief analyst of Heshuo Agency, said that in the past two years, China's housing rental market has entered a period of rapid development. Whether from the stage of China's urbanization process, or from the iterative changes in the rental population, the development of the housing rental market, especially long-term leasing is very necessary and urgent, because it is the rigid demand of the urban population, and a higher quality of protection of the housing rental needs of the foreign population is an important project.

Yan Yuejin, director of the E-House Real Estate Research Institute, analyzed that under the active participation of all parties such as policy, capital and enterprises, the housing rental market has become a trillion-dollar market, and is the only area with important policy dividends at present, and its space for development cannot be ignored. It is expected that the future of the country may continue to increase the supply of such land, but also will continue to have cities to join the ranks of the supply of such land.