Shenzhen’s Housing and Construction Bureau opened applications online this week for 248 sets of renovated apartments in Tanglang City Plaza. These are not just any kind of apartments, however: their rents are set at a monthly baseline averaging RMB110 per sqm (slightly adjustable for bigger units and higher floors), which is significantly below the market average of RMB139.6 per sqm in the surrounding Nanshan district, home to many of the city’s tech companies.
Moreover, here’s the kicker: rents in these units will be controlled. Annual fluctuations will not exceed 5%, up or down. Successful applicants can take leases of 1-3 years, which can be renewed, but for a maximum total of five years.
Continue reading Shenzhen opens new ‘rent control’ housing
Shenzhen’s high housing prices have been a major focus recently as the city is well aware of the need to attract and retain “talents”. The government has now released six measures to increase the supply of rental apartments and regulate the leasing market.
Basically, the government is encouraging landlords and/or leasing companies to join its leasing service platform. It is offering tax incentives to do so, such as VAT rebates.
Shenzhen is also working on supply, offering more public rentals. These account for 30% of newly-added commercial housing. Moreover, more land to build rental apartments are being assigned to industrial parks. Regulations to restrict the rental fees and combat illegal leasing have also been introduced.
Read more in Chinese.