July 2022 Housing Rental Industry Development Report

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Industry News

1. Central Policy

In July, the central government further cultivated and developed the housing rental market, and stabilizing the economy and people’s livelihood is still the main tone of regulation. The National Development and Reform Commission proposed to revitalize the stock housing resources, expand the supply of rental housing, and help rent and purchase housing to have equal rights to enjoy public services. In addition, the Political Bureau of the Central Committee held an economic meeting on July 28 to analyze and study the current economic situation, deploy economic work in the second half of the year, support rigid and improved housing needs, compact local government responsibilities, ensure the delivery of buildings, and stabilize people’s livelihood.

2. Local policies

Local governments have stepped up policy efforts in market supervision. Hainan, Shaanxi, Chengdu, Nanjing and Tongling have accelerated the implementation of affordable rental housing; in terms of market cultivation, Shenzhen has issued regulations to encourage renters to enjoy the same basic public services as homebuyers. treatment. The policy involves the standard and specification of rent for rented houses, contract rectification, and the identification of rented houses. It is conducive to promoting the standardized development of the housing leasing industry.

3. Industry dynamics

This month, local governments have made more moves in terms of incentives and subsidies. Housing leasing projects in Zhengzhou, Weihai and Jingzhou will receive special awards and subsidies from the central government. Among them, the Jingzhou Municipal Bureau of Finance issued a subsidy fund of 69.08 million yuan for the affordable rental housing project of the central government’s urban affordable housing project in 2022, which will be used for the construction of affordable rental housing in 2022. Chengdu announced the first batch of affordable rental housing operation service enterprises. It is expected to promote the healthy development of affordable rental housing.

4. Capital dynamics

In July, the pilot work of affordable rental housing REITs was accelerated. The first batch of affordable rental housing REITs in the country, Xiamen Anju Project, was approved, Huafa Industrial’s 2.156 billion yuan long-term rental REITs were successfully established, and Huaxia Beijing Affordable Housing Center REITs were accepted by the Shanghai Stock Exchange; in addition, CCB will provide Beijing urban renewal and rental housing construction. No less than 1 trillion yuan of supporting financing support, Yuguo Long-term Rental Apartment, C&D Real Estate Group, etc. have also ushered in new progress in financing. It can be seen that under the guidance of policies, the domestic housing leasing financing market has recovered. In particular, the release of the “Guidelines” of the Shanghai and Shenzhen Stock Exchanges will further promote the stable and healthy development of the affordable rental housing REITs market, and establish a housing system featuring multi-subject supply, multi-channel security, and simultaneous rent and purchase.

5. Enterprise dynamics

This month, in terms of strategic cooperation , Xuhui Ling Apartment reached a project cooperation with Jinjiang Real Estate, a subsidiary of Chengdu Jinjiang Development.

In terms of asset changes , mergers and acquisitions have become a hot topic this month. Including Chengjia’s announcement of the strategic merger of Rui Beiting Apartment, the complete acquisition of Oakwood by Ascott, and the purchase of Building 6 of Shanghai Xuhui Innocence Center by Lingyu subsidiary. The asset transaction will bring a large amount of housing supply to Ascott and Chengjia Apartments in the short term, and most of them are serviced apartments. It shows that mergers and acquisitions have increasingly become an important channel for corporate strategic expansion, and mid-to-high-end products with higher yields are more favored by the capital market.

In terms of start-up dynamics , Xi’an and Ningbo ushered in the start of the first batch of TOD affordable rental housing projects. It marks the official debut of the rail transit-led demonstration affordable housing project, which is a beneficial exploration of the construction of the affordable housing project.

In terms of delivery dynamics , Shanghai Songjiang District has ushered in the delivery of the Zhonghai Youli self-owned long-term rental apartment project, with a total of 551 housing listings. At present, the first and second phases have been delivered, and the third phase is expected to be delivered next year.

land market

1. Listing of rental land: Yuyao listed 2 affordable rental housing land in July, with a transfer area of 16,939 square meters

In mid-July, Yuyao City Lanjiang Street Fengyanghe Plot of affordable rental housing and Langxia Street Chaoyang Road east side, Yonghe Road south side of the land and other 2 affordable rental housing land have been listed for sale, with a total area of 16,939 square meters. It is estimated that 514 sets of affordable rental housing can be built.

rental market

1. Supply of affordable rental housing: Guangdong, Qingdao, Nanning, Harbin and other provinces and cities announced the supply of affordable rental housing

In July, Guangdong, Qingdao, Nanning, Harbin and other cities continued to announce plans for the supply of affordable rental housing. During the “14th Five-Year Plan” period, Qingdao is expected to raise 210,000 housing units, Nanning strives to supply a total of 80,000 units, and Harbin is no less than 30,000 units; Guangdong plans to raise 295,100 rental housing units in 2022.

In July, Shandong, Shanghai, Fuzhou, Guiyang and other provinces and cities released a semi-annual inventory of the construction progress of subsidized rental housing. Among them, the operating rate of Shandong, Guizhou and Fuzhou exceeded 50%. Shanghai has overfulfilled its annual supply plan of 60,000 rented houses.

2. The performance of the housing rental market in 20 cities across the country: the epidemic prevention and control situation improved, and the housing rental market continued to pick up

Thanks to the stabilization of epidemic prevention and control, in July, the housing rental market in key 20 cities across the country continued to recover. With the impact of the graduation season, the rental market returned to the traditional cycle, and the market activity increased significantly. The average rent of rental properties in 20 cities across the country was 51.5 yuan/month/㎡, an increase of 0.85% from the previous month. Cities such as Beijing and Shanghai have ushered in the peak rental season.

From the perspective of rents in different grades of cities, in July 2022, the rental prices in key monitored cities will generally increase, and the rent prices in new first-tier cities will increase most significantly. The average price of rental properties in new first-tier cities was 42.51 yuan/month/㎡, up 1.24% month-on-month and 1.64% year-on-year, and prices continued to rise. Among them, the rental market in Wuhan and Qingdao recovered rapidly. Although rents in first-tier cities continued to rise, the rate of increase slowed down, with Beijing and Shanghai leading the rise in first-tier cities.

Rental prices in second-tier cities stopped falling and rose. Among key cities, the average price of rental properties in second-tier cities was 37.7 yuan per square meter, a slight increase of 0.61% month-on-month and a year-on-year decrease of 4.47%. This is mainly due to seasonal warming. Among them, Jinan and Hefei performed the best. In July, the rents in Jinan and Hefei were 41.74 yuan/month/m2 and 32.97 yuan/month/m2, up 11.51% and 3.48% month-on-month, respectively.

With the gradual weakening of the peak season effect, it is expected that the rent increase will be narrowed, the rent level in first-tier and new first-tier cities may stabilize, and the increase may continue to narrow in August.

Top 100 List of the Month

The following is the ” Top 100 List of Housing Rental Brand Influence (MBI) in July 2022 ” exclusively released by Maidian Research Institute. This month , Guanyu, Port Apartment, Mofang Apartment, Lehu Apartment, Meiwu, Ziroom Rental, Bijia International Community, Woqu Apartment, Xiangyu and Xinpai Apartment entered the top ten of the list.

In July, the average brand index of the top 100 housing rental brands was 80.41, a month-on-month increase of 13.16%; the industry average was 23.68, a month-on-month increase of 10.41%. Compared with June, the overall long-term rental apartment brand index showed an upward trend, mainly due to the gradual improvement of the epidemic prevention situation. Facing the arrival of the graduation season, the long-term rental apartment brand increased its brand promotion, as well as the increase in strategic cooperation and mergers and acquisitions. , resulting in a rebound in the market heat and a rapid rebound in the brand index.

Brand Segmentation List

1. Brand performance in subdivision background: the growth rate of brand influence of state-owned enterprises is the most obvious, and Jinjia Apartment has the best performance

In the subdivision background of long-term rental apartment brands, in terms of the comprehensive average index and growth rate, the overall performance of state-owned enterprise background brands was better this month, and the state-owned enterprise background brand index was 17.46, an increase of 37% from the previous month.

Compared with last month, among the state-owned enterprise brands, Jinjia Apartment performed the best, rising 7 places in the list of state-owned enterprise brands. On July 1, Jinjia Yuejiangtai Rental Community, one of the first batch of self-sustained rental housing communities in Nanjing, entered the market. This is a large-scale rental community of state-owned enterprises built by Anju Group and Yanziji New City, with 1,000 square meters of public activity space. After more than a year of development, Jinjia has now set foot in large-scale rental communities and centralized apartments to meet the diverse living needs of various talents in Nanjing. Attracted media coverage and improved the brand index.

2. Regional brand performance: The global regional brand performance is relatively good, and the ranking of Ascott Serviced Apartments has risen rapidly

From the perspective of the distribution of housing rental brands, nearly 40% of the brands are national brands. 9% of the brands are global brands. In addition, East China and South China accounted for 19% and 17% respectively. This month, brands in central China performed the best, with the brand index rising 15.26%. Among them, Ascott Serviced Apartments performed the best, with a rapid rise in rankings, ranking among the top five in the global brand rankings for seven consecutive months. This is mainly related to the capital move of Ascott Serviced Apartments. On July 4, Ascott officially announced the complete acquisition of Oakwood Worldwide from Mapletree Investments Pte Ltd. After the successful acquisition, Ascott’s global management scale will further increase, with an additional 81 properties and about 15,000 housing units, which have been reported by the media.

3. Subdivision theme brand performance: Talent Apartment has the most outstanding performance, and Guanyu ranks in the TOP1 talent apartment brand

Judging from the subdivision themes of long-term rental apartment brands, this month, talent apartments performed more prominently. This month’s talent apartment brand index was 7.99, up 24.3% month-on-month, with the fastest increase in popularity. Among them, the ranking of Guanyu has risen rapidly. In the past year, Guanyu has been ranked among the top three in the list of talent apartments, and this month it has once again been ranked as the top 1 in the list of talent apartments.

Guanyu is operated by Dongguan Anju Company, a wholly-owned subsidiary of Dongshi Group. Since its establishment, Anju Company has focused on building the “Guanyu” municipal housing brand for young talents, on the one hand, on the collection and construction of housing for talents, and on the other hand, on the supporting services of the housing community for talents. In the first half of 2022, Guanyu actively participated in the agency operation of talent apartments. In the first half of the year, the scale of newly signed projects exceeded 1,500, helping Dongguan to accelerate the development of affordable rental housing and expand the supply of affordable housing.

Brand segmentation dimension

1. Search focus: Lehu Apartment

The top ten brands in the search index this month are: Woqu Apartment, Ziroom Rental, Lehu Apartment, China Construction Xingfu + Apartment, Poly N+ Apartment, Xinpai Apartment, Mofang Apartment, Chengjia Apartment, Youkeyijia, Fusion apartment. Among them, Lehu Apartment is worthy of attention. The search index this month reached 107.77, a month-on-month increase of 43.2%.

In July, the potential customers of Lehu Apartments were mainly concentrated in Jiangsu, Anhui, Zhejiang, Beijing, Fujian and other places. The potential customers of Lehu Apartment in the country are mainly aged 20-29 years old, accounting for 56% of the age range; followed by 30-39 years old, accounting for 31% of the age range; male customers are more concerned than women, Male customers account for as high as 63%.

2. Media focus: Guanyu

Judging from the media index of long-term rental apartment brands, in July, the top ten brands in the media index were: Guanyu, Port Apartment, Mofang Apartment, Lehu Apartment, Xiangyu, Yuexiu Xingyu, Fangyu Apartment, Ruibei Ting Apartment Hotel, Bijia International Community, and Accord Apartments. Among them, the key brand in the media index is Guanyu, whose media index reached 388.97, ranking first in the media index.

This month, Guanyu’s media sources mainly focus on Guosou News, Baidu News, NetEase News, and Tencent News. The content of the articles published mainly focuses on the graduation season activities of Guanyu’s “Dream Living Program” and Longfor Guanyu’s five consecutive years of winning the point of progress. The annual “MBI Influential Brand” award has been widely reported by the media and improved the media index of Guanyu.

3. Operation focus: Bijia International Community

The top ten in this month’s operating index are: Meiliwu, Guanyu, Bijia International Community, Port Apartment, Ziroom Rental, Mofang Apartment, Youmi Apartment, Wutong Apartment, Boleshi Service Apartment, and Xinpai Apartment. Among them, the brand with outstanding operation performance is Bijia International Community, whose operation index reached 178.64, ranking third in the operation index.

Data shows that in July, the number of WeChat-related articles in Bijia International Community was 3,697, a significant increase from the previous month. The content of the articles on the WeChat official account mainly revolves around the brand’s award-winning dynamics and co-brand marketing activities. On July 29, at the 6th “2022 China Leasing Real Estate MBI Brand Summit” held in Hangzhou, Bijia International Community won the title of “2021 MBI Influential Brand of Centralized Long-Term Rental Apartments”; in addition, Bijia and Xtep Brand marketing activities such as the joint activity “National Sports Season” and the rental benefits for the graduation season have improved the Bijia International Community Operation Index.

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