Shanghai strives to develop rental market

Two parcels of land in Shanghai are being leased for "rental residential projects", the first of its kind in the city, as the metropolis encourages the development of a variety of residential properties.

Shanghai's land and planning authorities said on Tuesday evening that two parcels, 65,000 square meters in Pudong district's Zhangjiang science park area and 28,500 square meters in Jiading district, would be leased for 70 years, and those who acquire the land parcels at later auctions must ensure that the projects developed must be rented residential properties.

Lu Wenxi, a Shanghai-based Centaline Property analyst, said that "rental residential property" is a brand-new purpose for land use emerging amid a fast changing residential property market.