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Individual landlords have raised prices by 9% in 2 months, but Shanghai rents are facing "retaliatory increases" under the Shanghai tide
06/16/2022 08:33
"Some landlords reported that the house was rented out in less than an hour, and the Shanghai rental market has picked up significantly." On June 13, the "May Key Cities Rental Report" released by 58.com and Anju Room Property Research Institute showed that, In May, the popularity of renting in Shanghai (note: "renting popularity" refers to the number of visits to listings on the 58 same-city rental channel) generally increased month-on-month, with Pudong, Minhang, Baoshan, Fengxian, Xuhui and Hongkou all increasing by more than 60% month-on-month.
Previously, a report released by the Kerui Rental and Sales Data System on June 8 showed that the rent of individual housing in Shanghai increased for two consecutive months from April to May.
Lu Wenxi, chief analyst of Shanghai Centaline Real Estate, revealed to a reporter from China Times that only one-third of the people surveyed by Centaline Real Estate actually left Shanghai, "More people want to stay in Shanghai, and more people want to stay in Shanghai. to Shanghai". With the progress of Shanghai's resumption of work and production and the return of migrants, it is expected that the Shanghai rental market will continue to heat up.
Nearly 60% of the city's rents have risen
"The company only paid the basic salary for more than two months after the epidemic, and the price increase was not enough. The landlord said that the rent would increase as soon as the lockdown was lifted." On the afternoon of June 9, the tenant Wang Zhen (pseudonym) reluctantly told the "China Times" reporter: "There is no retaliatory consumption yet, and the rent has risen retaliatory first."
Wang Zhen and his roommate are currently renting in a community in Hanghua, Qibao Town, Minhang District. The lease expires on July 5 this year, and the rent during the contract period is 4,300 yuan/month. A few days ago, the landlord called to ask Wang Zhen and his roommates if they needed to renew the lease after the lease expired: if the lease was renewed, the rent would be increased by 400 yuan/month, otherwise they would move out as soon as possible before the contract expired. Considering that finding a new house and moving are a hassle, after discussing with his roommate, Wang Zhen accepted the landlord's condition of increasing the price by 400 yuan: "A person sharing 200 yuan is not much."
Zhao Jing (pseudonym), a tenant living in Jianjian Street, Xuhui District, also encountered the landlord’s rent increase. However, Zhao Jing chose to move after the lease expired. "If you don't increase the price, you have to move." Zhao Jing explained to the reporter of "China Times" that the rent in Xuhui District has always been high, and her income was greatly affected during the epidemic, and the economic pressure increased sharply. Although the landlord has increased by 500 this time, it is not a large amount after sharing it with roommates. It's just that during the lockdown period, the roommates multiplied due to trivial life chores. "It feels more comfortable to live alone," Zhao Jing said.
The situation of Wang Zhen and Zhao Jing is not an exception. Since May, on social platforms such as Weibo, Xiaohongshu, and Douban, there have been many posts from tenants complaining about “the skyrocketing rent in Shanghai” and “the landlord’s strong price increase”. Not only personal rental properties, but also some branded long-term rental apartments have also joined the queue for rent increases. Of course, some netizens said that they did not encounter rent increases. Some netizens said that in order to avoid the vacancy period of re-listing and the trouble of finding tenants again, the landlord offered to renew the lease without raising the price or even lowering the price.
The "China Times" reporter noticed that due to the different sources of data and sampling samples, the monitoring data of research institutions are not uniform.
For example, "some landlords reported that the house was rented out in less than an hour, and the popularity of Shanghai's rental market has rebounded significantly." On June 13, the "May Key Cities Rental Housing Report" released by 58.com and Anju Room Property Research Institute showed that in May, the popularity of rental housing in Shanghai generally increased month-on-month, and Pudong, Minhang, Baoshan, Fengxian, Xuhui and Hongkou all increased month-on-month. More than 60%, the number of new houses in Chongming District increased by more than 3 times from the previous month. Overall, the average rent in Shanghai in May was stable at 6,348 yuan/set/month.
According to a report released on June 8 by the Crane Rent and Sales Data System, the rent of individual housing in Shanghai experienced "two consecutive increases" from April to May. Among them, the rent of personal housing in Shanghai in May was 102.51 yuan/square meter/month, ranking first among the 55 cities, and it was also the only city where the monthly rent per square meter exceeded 100 yuan; the rent of personal housing increased by 6% month-on-month, ranking first in the increase. In the top three of the 55 cities; in April, the rent of individual listings increased by 4% month-on-month. In terms of sub-regions, nearly 60% of the rents in Shanghai have increased, and the rent in Huangpu District has increased the most, up 15.18%.
However, the report on rental and sales data from Kerui also emphasized that compared with the increase in Shanghai rents in the spring and summer of previous years, this year's increase is not "obvious". And said, "There are ups and downs, and the overall average is the real current situation of the rental market."
Lianjia emphasized to the reporter of "China Times" that from the leasing data of Shell this year, the rent has not increased. The rent level in the first and second quarters of Shanghai remained at 86 yuan / square meter, and the overall leasing market this year was stable. As for why the data is so different from other institutions, Lianjia bluntly stated that "leasing data itself is opaque."
The logic of rents rising against the trend
The epidemic prevention and control in Shanghai is severe, and the migrant population has accelerated to return to their hometowns. Why is the rent still rising against the trend?
The prevailing view is that "the landlord wants to make up for the loss" is the most direct motivation. A landlord bluntly stated to the "China Times" that his income was greatly reduced during the epidemic. As a landlord, it is understandable that he wants to "recover blood" by increasing the rent to make up for the loss.
It is worth mentioning that there is a market view that it is not only landlords who want to "return blood", but also intermediaries who have been idle for 2 months. Rents in Shanghai have risen against the trend or because the intermediaries and landlords have joined forces to drive up prices. In fact, there is no basis for the rise. In this regard, an intermediary who requested anonymity told the "China Times" reporter that as far as he knows, there may indeed be a similar situation among peers, but the recent rise in rents in Shanghai is a superposition of multiple factors, which cannot be simply attributed to "price gouging". ".
On June 13, Lu Wenxi, chief analyst of Shanghai Centaline Real Estate, pointed out to a reporter from China Times that in terms of rent, the price of some houses in Shanghai has increased by 2%-5% compared with March. "This is the action of individual landlords. It remains to be seen whether the prices of other listed properties will be affected at the same time, and the market will deny this price increase." Lu Wenxi said.
But "it's normal for rents to go up a little bit." Lu Wenxi explained that in general, from February to April, there will be some small natural increases in the Shanghai rental market, "Most of the transaction volume and price increases will be at this time. The segment is released”, and the rise in May-June is an inertial rise.
At the same time, "there are many housing listings coming out in June, but there are also more people renting and changing houses." Lu Wenxi pointed out that under normal circumstances before the epidemic, rents from June to August were also higher than other months. Because in the past few months, just in time for college graduates to rent a house after graduation, and parents need to rent a house to accompany their students during the school season, the growth of new rental demand has also increased the popularity of Shanghai's rental market.
During the 2-month closure and control, the importance of the neighborhood committee and the property is obvious to all, and the requirements of the tenants for the living environment and property management level have also been significantly improved. In an interview with the "China Times" reporter, Lu Wenxi, Zhang Bo, director of the 58 Anju Room Property Research Institute branch, and other industry insiders said that many people who were renting together before will now prefer to rent whole or live alone if conditions permit, which has driven the overall market rent. rise. "Generally speaking, in terms of rental demand at the mid-to-high end, the increase in rent will be more obvious." Zhang Bo told the "China Times" reporter.
In fact, under the "leaving Shanghai tide", the rental demand in Shanghai is still very considerable. According to the survey conducted by Centaline Property, "some people come and some people leave". Only one-third of the people surveyed actually left Shanghai. "More people want to stay in Shanghai, and more people want to come to Shanghai," Lu Wenxi said.
Lu Wenxi believes that under the general trend of improving epidemic prevention and control, with the progress of Shanghai's resumption of work and production, the economy is gradually recovering. As a first-tier city with a strong economic foundation and strength, its attractiveness to the population is still very strong. It is expected that the Shanghai rental market will remain strong. heating state.
Zhang Bo pointed out that since some flexible workers did not leave Shanghai in April and May, some low-end rental demand did not increase significantly. However, it is expected that with the return of flexible workers in June and July, the rental demand for mid-to-low-end housing will also usher in further growth. Coupled with the arrival of the graduation season, "In July and August, I think the demand for the entire Shanghai rental market will still increase significantly," Zhang Bo judged.
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