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Property prices drop, rental climbs

By Hao Yan (chinadaily.com.cn)
Updated: 2010-05-24 17:55

The new housing regulations have influenced Beijing's Tongzhou and Wangjing areas most as property prices dropped by 15 percent but rental climbed, as it did in Yizhuang and Majiapu, by more than seven percent, said Centaline Property's report.

The report also said that property for rent in April was 28 percent more than that in the same period last year, the rental price rose 5.1 percent than the previous month, rental roared 7 percent or 300 yuan ($43.94) in some hot places, China Business Times reported Monday.

Rental per capita for shared homes reached 1,000 yuan, costing more than 33 percent of incomes, China Business Times said according to Beijing Bureau of Statistics data.

Centaline Property's report also said that the property buyers and sellers are waiting for a clearer situation so that more property owners are leasing their properties, more people deferred their purchase plan and rented a flat.

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Sources familiar with the real estate industry said many are unable to afford the property, so they tend to rent other than purchase.

Many Chinese believe that they should own a property to get married and form a family.

The State Council, China's cabinet, issued ten specific measures on April 17 to curb the skyrocketing housing prices.

The Beijing municipal government issued 12 specific measures on April 30.