Shanghai rentals index for 1244 points, up by 9:00, up 0.73 percent, or 0.08 percentage points last month to expand. High, medium and low-rise high again, especially in the high-end market was the most prominent.
Shanghai office rentals index that since the implementation of the New Deal, falling prices does not meet buyers expectations due to a rigid demand for home buyers continue keep money to purchase and change purchase to rent, further exacerbating the rental market supply and demand imbalance, resulting in rents continued to rise. In addition, the September semester approaching, arriving in college graduates, such as children's education and renting new demand increase, rising rents a subsequent new motivation.
High-end rents rose to accelerate market
Demand for and rentals of high-end residences in Shanghai have risen sharply in the first five months of 2013 as more expatriates came to work at multinationals' regional headquarters in the city.
In 10 tracked areas the amount of rented residences costing at least ¥10,000 ($1,630) per month rose 11% between January and May, while the amount of rented residences costing between ¥5,000 and ¥10,000 per month rose 17%, according to real estate agency Hanyu Property.
The rentals of high-end residences-classified as those rented for ¥10,000 per month or above -rose 10% to 20% in May from a year earlier. The growth rates in expat-intensive neighborhoods in Pudong district were all above 15%, according to Hanyu Property. 60% of high-end renters were foreigners.
"The rising rentals followed strong demand after more foreigners began working in the new office buildings near those communities," Hanyu Property analyst Fu Wei said. "Another reason is there is enough room for rental to rise rapidly as the rental-to-price ratio of luxury residences is fairly low at 1.5% to 2% in Shanghai."
The ratio is a residence's 12-month rental divided by its price.
Mid-market rising trend
Shanghai mid-market rentals rose 0.75%. Which rose 0.76 percent two-bedroom, three-compartment rose 0.75%. Monitored by mid-market rents rose 12 districts more than 0.5%.
Mid-market gainers plates have Zhabei, Minhang, Hongkou, Baoshan, August were up 0.91%, 0.89%, 0.89% and 0.8%. Rent for several months in the broad end, for the following reasons: First, just need to increase. Market regulation this year, many investors in order to avoid the risk of future policies and focus on selling houses, but many buyers to postpone the purchase plan, select the mid-market rent over this part of the population in the management of small and medium enterprises, proportion of white-collar workers more, led the rising rents. Second season features. 7,8,9 months each year is usually the traditional peak season leases, rents during this period will be raised.
Trends in the low-end market remains closed up
August, Shanghai low-end market rents rose 0.46 percent. Respectively, one and two bedroom rents rose 0.5% and 0.4%.
