According to the China Economy Net, average rental price for suites in Beijing in the first quarter of 2013 has climbed to 3,660 yuan, up 82% compared with 2008, almost doubled in five years.
Why the rental price will be skyrocketing? According to “I love my family” vice president Hu Jinghui who had listed out three major factors behind the rental increase:
- Lack of new housing supply;
- The influx of foreign population; and
- Rising CPI.
He suggested that solving the problem of high rental should develop measures based on these three aspects.
Surprisingly, during the past five years, the average rent increase even beat rising house price. The data show that in 2008, the average transaction price of commercial housing in Beijing was around 128,000 yuan / square meter, while the first quarter of this year, the average price of commercial housing turnover is about 220,000 yuan / square meter, the rate of increase of 71.87%, prices rose is less than the rental growth which as above mentioned is 82%.