Rentals pick up as preowned home sales slow

An increasing number of homeowners in Shanghai are leasing out their properties rather than selling them, as the preowned homes segment has turned sluggish, analysts said.

The market has been affected by the recent limits on purchases and tighter norms for home loans.

Prospective homebuyers also seem to prefer the option of renting, as supply has increased in the form of affordable rental projects and serviced apartments. Such projects have been launched by big developers, they said.