Housing rents in China’s top-tier cities increased for the fifth consecutive month in July, driven by a broader recovery in the property market and a seasonal surge in demand from university graduates entering the job market.
The average rent in these major cities rose by 0.4 percent compared to June, according to recent figures from an industry research group. Beijing, Shanghai, and Shenzhen continued to lead this upward trend, although the rental growth in Guangzhou remained relatively modest.
Among the country’s 50 key cities, Shanghai has led the way with four straight months of rent increases. All 16 districts in Shanghai experienced month-on-month rent hikes, with central districts like Hongkou and Huangpu seeing increases of over 1 percent.
In Beijing, rent prices also increased from the previous month. The number of districts reporting higher rents grew to 15 out of 16, an increase of five districts compared to June. In Shenzhen, seven out of nine districts experienced monthly growth.
Meanwhile, rental markets in second-tier cities remained largely stable, while third- and fourth-tier cities saw small increases of about 0.02 percent, ending a 24-month decline, according to the data.
The report noted that rental markets in first-tier cities are more resilient, thanks to stronger economic fundamentals, larger labor pools, and ongoing population growth. Seasonal demand linked to university graduations tends to have a more noticeable impact in these cities than elsewhere.
Looking forward, industry forecasts suggest that rents in first-tier cities and the most active second-tier markets are likely to continue their upward trend. Although downward pressure may persist in many lower-tier cities, the magnitude and speed of future declines seem to be diminishing.
Across China’s 50 largest cities, the average monthly rent reached approximately CNY34.01 (USD5.04) per square meter, marking a 0.1 percent increase from June and the strongest such figure since a 0.2 percent rise earlier in the year, according to the research group.