A community in Shilibao, Chaoyang District, Beijing. Photo by Xue Yufei
China-Singapore Jingwei client, June 26 (Xue Yufei) The epidemic in the Xinfadi wholesale market in Beijing has poured cold water on the rental market that should have recovered. "Graduates haven't come back. Few of the customers who watched are college students who just graduated this year. Our current watch is about 30% less than before." Real Estate Agent Li Feng (pseudonym) said.
The Sino-Singapore Jingwei client recently visited and found that the Beijing rental market is obviously cold, and even the houses in popular rental areas are more difficult to rent out. Whether it is a personal landlord or a long-term rental apartment company, they have all lowered the rent price and attracted tenants to rent. The industry believes that in the short term, the transaction volume in the Beijing leasing market will still decline rapidly, and prices will drop steadily.
Rental bargaining space increases, turnover declines by more than 30%
Generally speaking, after the Spring Festival every year and the graduation season of colleges and universities, it is the traditional peak season of the rental market, and the transaction volume and transaction price will increase slightly. However, due to the epidemic, the two major rental seasons this year have been greatly affected.
Shilibao, which is located outside the East Fourth Ring Road in Chaoyang District, Beijing, was a popular rental area in the past, but now it is facing the problem of reducing the number of customers and difficult to rent.
Li Feng, an agent of a large real estate agency company Shilibao Store, said: "June was when the graduates rented more houses, but affected by the epidemic, the graduates did not come back. Few of the customers they took were just this year. Graduated college student. Our current watch is about 30% less than before."
Rental properties in Shilibao, Chaoyang District, Beijing. Photo by Xue Yufei
The decrease in the number of customers has led to an increase in room for rent bargaining. Li Feng recommended three sets of two-bedroom homes of about 5,000 yuan/month to the reporters of China-Singapore Jingwei, saying, "The landlords are sincerely rented, and the prices can be negotiated. It is not a problem to drop a few hundred yuan/month."
A landlord is renting out a two-bedroom house at a price of about 4,500 yuan/month. Li Feng said that the house has been vacant for a long time, the landlord is anxious to rent, and the listing price is a very low price in the Shilibao area. Even so, the landlord still told the reporters of China-Singapore Jingwei: "Now the house is not easy to rent. If I want to rent it, I can lower it to 4,000 yuan/month."
Chen Xiao (pseudonym) is an employee of a small long-term rental apartment company. He told the Sino-Singapore Jingwei client that their company's listing in Shilibao has not been worrying about renting, but this year's market has reversed and the number of renters has decreased significantly. The company's two-bedroom apartment close to Shilibao subway is being rented out. The rent for the listing last year was 6,000 yuan/month, and the listing price is now 5,500 yuan/month. However, even this has not been possible to rent out. It has been vacant for a month.
"The company pays rent to the landlord every month. In order to reduce losses, the price is lower. I hope to rent out as soon as possible. If the tenant can sign the contract as soon as possible, the rent can be reduced by 200 yuan -300 yuan/month." Chen Xiao Say.
According to the statistics of my home research institute, in the first three weeks of June (June 1-June 21), Beijing's housing leasing transaction volume fell by 5.78% compared with the same period in May and 3.17% compared with the same period in June 2019. Among them, in the third week of June (June 15-June 21), the leasing transaction volume fell by 19.27% compared with the second week, a larger drop.
According to the Shell Research Institute, affected by the epidemic, Beijing's emergency response level has been raised, and communities have begun to control population movements, which has caused a significant impact on the rental market. The volume of transactions in the third week of June decreased by 31% compared with the second week.
Rentals fell by more than 7% year-on-year
The impact of the epidemic on the rental market continues to show. Li Feng said that the rent price of the two-bedroom apartment in Shilibao is at least 300 yuan/month lower than last year. If the landlord does not reduce the price, it can only be vacant. Chen Xiao said that their company has a lot of rental properties in the Yaojiayuan area. Due to the distance from the subway and the decrease in the number of customers, the two-bedroom originally in the area was 6000-7000 yuan/month, and 800-1000 yuan/month generally appeared. Drop.
"One of my tenants rented in the Yaojiayuan area. The rent was more than 2,000 yuan/month. Before the rent expired, I offered to reduce her by 200 yuan/month, but the tenant was still not satisfied and still wanted to check out. We Now I want to retain customers, because the loss is greater when empty." Chen Xiao said.
Overall, I love my home research data shows that in the first three weeks of June (June 1-June 21), the average price of the entire lease transaction in Beijing's housing lease was 89 yuan/square meter/month, compared with May During the same period, it rose 0.93%, down 6.40% from the same period in June 2019. The average price of the entire leasing transaction is 5743 yuan/set/month, up 2.75% from the same period in May, and down 7.43% from the same period in June 2019. Compared with May, Beijing rents still rose slightly in June, but were significantly lower than the same period last year.
Zhang Dawei, the chief analyst of Centaline Real Estate, told Zhongxin Jingwei Client that rents in Beijing's housing market are generally declining, which is very rare. The last major price cuts were traced back to the period of the 2008 financial crisis.
It is worth mentioning that in recent years, long-term rental apartment companies that have grown up in first- and second-tier cities have been accused of pushing up the rental market prices, but now they have also reduced prices and promoted rentals to increase the intensity of rental discounts.
In 2019, Liu Bin (pseudonym) rented a two-bedroom apartment located in Chaoyang District from a certain minister-rented apartment company, with a rent of 5,500 yuan/month. Before the end of June this year, the housekeeper of the long-term apartment took the initiative to contact Liu Bin, saying that the company launched a renewal activity with great discounts. As long as the tenant renews for one year, the first month's rent is 50% off. Starting from the month, 25% of the rent will be returned every month for 10 consecutive months. Liu Bin said that he thought that the rent would increase this year, but it was actually cheaper. All the discounts were calculated, which was equivalent to three months of rent exemption, and the rent was renewed decisively.
The Sino-Singapore Jingwei client noticed that in June, the Eggshell Apartment launched a number of preferential activities. Some houses have a 45% discount on the first month's rent, and 2 months' rent can be discounted for 1 year. For graduates, up to 3 rent-free Monthly, send another free rental. Freely launching the "Haiyan Plan", in addition to sending moving vouchers, also launched a "bundle of benefits" with many companies.
According to Zhang Dawei, the current vacancy rate of long-term rental apartment companies has increased. To this end, on the one hand, they have increased leasing concessions for houses with low housing costs and increased occupancy rates. Housing, persuading property owners to lower prices and reduce losses.
Epidemic situation hinders market recovery, rents are steadily falling
Rental listings. Photo by Xue Yufei
I love my home research institute pointed out that in May this year, the transaction volume of the Beijing rental market has been tied to the highest point in March and July of 2019, and the postponed "spring peak season" has appeared, while June and July have been It is the peak renting season for the graduation season. If the epidemic does not recur, the high probability of the transaction volume from May to July this year will continue to remain high, achieving a seamless connection between the "spring peak season" and the peak season of the graduation season, and rents can continue to rise slightly.
"But the epidemic has hit the Beijing leasing market again. The transaction volume in the third week of June (June 15-June 21) has declined significantly. The original market expectations in June and July will be lower, and there is room for rent to rebound It will also narrow down." I love the judgment of my institute.
Zhang Dawei said that the reason for the general rent reduction is obvious, mainly related to the epidemic and the overall macroeconomic operation. The epidemic affects the normal operation of the economy. The tenant’s current income or future income expectations have changed, and it will intentionally or unintentionally reduce housing expenditures. Cause rental prices to fall.
In addition, he also analyzed that in many cities, including Beijing, the rent prices in the past few years have risen too fast and overdrawn the leasing group's ability to pay in advance. Once the economy is turbulent, the rental market will be affected.
The Shell Research Institute predicts that the transaction volume of the Beijing leasing market will decline rapidly in the short term, and prices will decline steadily. In the medium and long term, the impact of the epidemic on the Beijing leasing market has not been eliminated, and the rental growth momentum is insufficient, and it may continue to maintain a steady decline. Situation.
"An epidemic has wiped out the rental season after the Spring Festival and the rental season for the graduation season, but it is still difficult to make accurate judgments about how the market will go. Now it is critical to see the changes in the epidemic." Zhang Dawei said. (Sino-Singapore Jingwei APP)
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