15 new first-tier cities rent levels: Hangzhou is comparable to first-tier cities, and the manufacturing industry is generally lower
Author: Lin Xiaozhao
Among the 15 cities, Hangzhou has the highest rent level, which is comparable to that of first-tier cities; Shenyang has the lowest, only 37% of Hangzhou.
In addition, rent levels in several major manufacturing markets are also relatively low.
Generally speaking, large cities with developed economies have a large influx of people and a relatively large demand for rental housing.
So what is the current rent level in the new first-tier cities?
A reporter from China Business News combed through the average rent data of 15 new first-tier cities on China's housing price market platform and found that among the 15 cities, Hangzhou has the highest rent level, which is comparable to the first-tier cities; Shenyang has the lowest, only 37% of Hangzhou.
In addition, rent levels in several major manufacturing markets are also relatively low.
According to the "2020 City Business Charm Ranking List" released by the China Business News Institute of New First-tier Cities in June 2020, the 15 new first-tier cities in 2020 are Chengdu, Chongqing, Hangzhou, Wuhan, Xi’an, Tianjin, Suzhou, Nanjing, Zhengzhou, Changsha, Dongguan, Shenyang, Qingdao, Hefei, Foshan.
Hangzhou is a tier one city
The data shows that among the 15 new first-tier cities, the average rent in two cities exceeds the level of 50 yuan/month/square meter, and the highest is Hangzhou, reaching 66.47 yuan/month/square meter.
In other words, renting a house of 100 square meters in Hangzhou costs an average of 6,647 yuan a month.
This data ranks fourth in the country after Beishangshen, surpassing the first-tier city of Guangzhou.
The main reason for the high rents in Hangzhou is that under the guidance of the digital economy, Hangzhou’s economy is developing rapidly, with high income levels, a large influx of population, and increasing demand for housing.
Niu Fengrui, a researcher at the Urban Development and Environmental Research Center of the Chinese Academy of Social Sciences, analyzed to a reporter from China Business News that in recent years, Hangzhou's digital economy and new economy have developed very well, and the performance of the new economy has become more prominent after the epidemic. Therefore, Hangzhou's development potential is very strong. .
Statistics from the Hangzhou Municipal Bureau of Statistics show that in 2020, the city’s digital economy core industries will achieve an added value of 429 billion yuan, an increase of 13.3%, which is 9.4 percentage points higher than the GDP growth rate, accounting for 26.6% of GDP, an increase of 1.9 points from the previous year. percentage point.
Ding Changfa, associate professor of the Department of Economics of Xiamen University, analyzed China Business News that the industrial structure determines the income structure.
Hangzhou’s new business formats are developing well, and well-known companies such as Alibaba and Hikvision are also developing well. The headquarter economy, banking, securities, insurance and other industries are also developing well, and the income of employees is very high.
According to the "Report on Chinese Employer Demand and White-collar Talent Supply in Winter 2020" released by Zhaopin Recruitment at the end of last year, in the winter of 2020, Beijing will continue to rank first with 11,913 yuan/month, Shanghai (11468 yuan/month), Shenzhen (10758 yuan/month) ) And Hangzhou (10062 yuan/month) average monthly recruitment salary is also over 10,000 yuan.
It is worth noting that this is also the first time that the average salary in Hangzhou has exceeded the 10,000 yuan mark, second only to Beijing, Shanghai and Shenzhen, and surpassing the first-tier city of Guangzhou, ranking fourth.
Not only that, Hangzhou's population growth momentum is very rapid.
Data show that from 2015 to 2018, Hangzhou’s population increments were 126,000, 170,000, 280,000, and 338,000 respectively, gradually catching up with Guangzhou and Shenzhen.
In 2019, the permanent population of Hangzhou increased from 9.806 million in 2018 to 10.36 million, an increase of 554,000. The annual increase exceeded Shenzhen and Guangzhou for the first time, ranking first in the country.
This year’s Hangzhou Municipal Government’s work report shows that in 2020, Hangzhou’s attraction to outstanding talents will continue to increase.
In 2020, Hangzhou has newly introduced 436,000 college students under the age of 35, and the net inflow rate of talents will continue to rank first in the country.
After Hangzhou, the rent level of Nanjing, another megacity in the Yangtze River Delta, ranks second among the 15 new first-tier cities, reaching 52.91 yuan/month/square meter, which ranks sixth among all cities in the country.
As one of the five largest cities with the highest concentration of higher education resources in China, Nanjing's comprehensive strength in science and education is second only to Beijing and Shanghai, ranking third in the country, and has a number of powerful universities such as Nanjing University and Southeast University.
At the same time, Nanjing began to promote the construction of a "innovative city" in 2017, and continuously transformed the advantages of science and education resources into innovative advantages.
During the "Thirteenth Five-Year Plan" period, the proportion of Nanjing's total social R&D investment in GDP increased from 2.95% to 3.8%, and the number of high-tech enterprises increased 4.1 times.
Why the manufacturing market is low
Among the 15 cities, the rent level in 7 cities is lower than 30 yuan/month/square meter, and the lowest is Shenyang, which is 24.91 yuan/month/square meter, which is only 37% of Hangzhou's.
On the one hand, the influx of population in Shenyang is not fast; on the other hand, the overall urbanization and industrialization of the Northeast region are relatively early. There are more original sheds and non-commercialized houses, and the housing ownership rate is relatively high. , The demand for rental housing is relatively low.
In addition to Shenyang, the rents in Zhengzhou, Foshan, Chongqing, Changsha, Xi'an and Hefei are also less than 30 yuan/month/square meter.
Among them, Zhengzhou, Chongqing, and Changsha are all areas where the manufacturing industry has developed quite well in recent years, and the population in the main urban area is relatively fast. However, the supply of land in these cities is relatively sufficient, and the overall housing prices have remained stable and reasonable.
Taking Changsha as an example, Zheng Jianxin, deputy secretary of the Changsha Municipal Party Committee and Mayor, recently revealed in an exclusive interview with Xinhua News Agency "Looking East Weekly" that before 2019, Changsha had a net inflow of 230,000 to 270,000 people every year for 4 consecutive years.
The seventh census data just obtained shows that by the end of 2020, the permanent population of Changsha has increased to 8.8 million, a net increase of nearly 410,000 in a year.
Zheng Jianxin mentioned in an interview that Changsha is now the city with the lowest housing price to income ratio among all major cities in the country. An ordinary family can buy a house of 100 square meters after 6.4 years of work. Young people can do without their parents, but with their partners. Easily pay down payment for housing.
In addition, compared with strong provincial capitals such as Hangzhou, Nanjing, Wuhan, and Chengdu, the coastal manufacturing cities such as Foshan, Dongguan, and Suzhou have a large number of migrants, but the overall rent level is much lower.
Ding Changfa said that the industrial structure determines the income structure.
Where the manufacturing industry is developed, the rent will not be too expensive, because if the manufacturing cost is so high, it will be difficult for companies to survive. This is also the invisible hand of the market.
Peng Peng, executive chairman of the Guangdong Institutional Reform Research Association, analyzed to a reporter from China Business News that the labor force concentrated in the manufacturing industry is lower than the income of employees in the modern service industry. In addition, many large manufacturing companies usually have dormitories and live in factory areas.
In addition, many workers in the manufacturing industry are single, and they may leave after two years of work. The jobs are relatively short-term.
In addition, most of the manufacturing industry is parked, and the parks are usually far away from the main urban areas. People who work there also choose to buy houses in the parks, not necessarily in the urban areas.
According to Niu Fengrui’s analysis of China Business News, from the perspective of spatial distribution, many industries and populations in large manufacturing cities such as Dongguan, Wuxi, Foshan, Suzhou, etc. are in the counties, towns and townships, and the entire urban structure is relatively scattered, rather than concentrated in the urban area. .
These cities have relatively large space, relatively low land costs, relatively low housing prices, and therefore relatively low rents.
The market determines the allocation of resources, and the scarcity of land resources in central cities such as Hangzhou and Nanjing has caused high prices.
Ding Changfa said that Hangzhou, Nanjing, Chengdu, Wuhan and other strong central cities have complete schools, hospitals, culture, and tourism facilities. These industries themselves also bring some relatively high-income groups.
In addition, these cities are dominated by modern producer service industries, high-end manufacturing and headquarters economy, which bring high-income employment groups. The positive externalities of the cities are very strong, so housing prices are more expensive.