The New Deal solves industry pain points

　　The long-term rental apartment market is picking up

　　After the adjustment in 2020, the long-term rental apartment industry will usher in new development opportunities in 2021.

Recently, good news has continued for the leasing industry. The executive meeting of the State Council held on June 18 clarified that the "tax reduction" policy will be implemented for housing leasing companies from October 1.

In July, it ushered in a series of policy support, from basic system, land, approval, capital, finance, and taxation policies to support the development of affordable rental housing.

Data shows that half of the top 100 real estate companies have entered long-term rental apartments. Under the new development opportunities, the leading companies are gradually showing their advantages.

　　Liu Liqin, All Media Reporter, Guangzhou Daily

　　The market leasing boom is picking up, and policy supervision continues unabated

　　In the past few years, long-term rental apartments were at the forefront, and many institutions entered the market, including many real estate companies.

After the downturn in 2020, the current long-term rental apartment market is obviously picking up.

As the Ministry of Housing and Urban-Rural Development, the National Development and Reform Commission and other six departments jointly issued the "Opinions on Strengthening the Supervision of Asset-light Housing Leasing Companies" and the release of new regulations to strengthen the supervision of the housing leasing market, industry regulatory policies have been upgraded, the leasing market has gradually become standardized, and the industry has also ushered in A new stage of development.

　　Recently, it is the peak period of graduation renting.

A few days ago, long-term rental apartment companies freely released the "2021 10 City Graduate Rental Report".

The report shows that more than 90% of the graduates surveyed would choose to rent a house to solve the housing problem when they just graduated.

Compared with ordinary residential leasing, long-term rental apartments have the advantages of better decoration, more complete supporting facilities, and higher service quality. Over 80% of graduates indicated that they would use long-term rental agencies as the preferred channel for renting houses.

　　The data shows that the current long-term rental apartments in the Guangzhou market are mainly brands such as Vanke Park Residence, Longhu Guanyu, Ziruo, Woqu, and YOU+ International Youth Community. As of the second half of 2020, there are about 90 centralized long-term rental apartment brands in Guangzhou. There are about 500 stores and more than 70,000 open houses.

Newly-added brands favor Haizhu and Nansha, which are slightly “price depressions”.

In terms of rent, the average rent in Guangzhou is in the range of 1,500 to 5,500 yuan.

Houses with rents below 1,500 yuan are mostly located in Panyu District, Liwan District, and Baiyun District, and the area is relatively remote and the housing area is small.

Houses with rents of more than RMB 5,500 are generally mid-to-high-end properties with good locations and convenient transportation. The monthly rent of a single set of housing rentals in Guangzhou is less than RMB 5,500, which accounts for the largest proportion.

　　Opportunities to develop large-scale rental housing, operating and strong housing companies will take the lead to benefit

　　Crane research data shows that half of the top 100 real estate companies have entered long-term rental apartments, and the leading companies maintain their development advantages and pay more attention to subdivisions, from early white-collar products to current high-end serviced apartments, corporate dormitories, and blue-collar workers. Apartments, talent apartments, etc.

Leasing will break through in two directions: one is the operation of a large leasing community, and the other is the operation of multiple formats.

　　The recent policy dividends in the leasing industry have continued to give the industry more room for development.

In July, affordable rental housing entered the pilot real estate investment trusts (REITs) for the first time in the infrastructure sector. This will largely solve the problem of high asset prices, high financing costs, high tax burdens, and low yields in the housing rental market. The pain points of the “high and low” industry, the housing rental market, including long-term rental apartments, will usher in a major development opportunity.

The institutions that take the lead in the layout will share the dividends of this policy.

　　An industry insider said that long-term rental apartments are a new field for real estate companies. After a difficult period of exploration, profitability is gradually increasing.

Statistics show that as of the end of 2020, Vanke's centralized apartments had opened a total of 142,400 in 33 cities.

Longfor Crown Apartments has deployed in more than 30 cities across the country and has now become a stable source of contribution to the group's operating income.

CIFI Residence has been deployed in 18 core cities across the country, with 70,440 listings expanded nationwide, and 28,730 opened listings.

Rental housing must solve the rental pain points of new youths and citizens, and meet the diversified rental needs.

From the perspective of Longhu, the projects are mainly distributed in the central urban area of ​​the city, concentrated along the subway line.

Longfor Crown Apartments currently has three product lines, namely bed-type residential products, studio-type apartment products, and suite-type residential products, which respectively serve the basic service personnel of urban migrant workers, urban young and new citizens, urban small families and expatriates. Elites correspond to three different rental needs of "a bed, a room, and a suite".

It is worth mentioning that Longhu Guanyu Guangzhou Science City is the first private apartment project listed in cooperation with the district-level talent office in Huangpu District.

The store is located in the Huangpu Science City Park and can provide 719 houses.

It can be seen that, after years of development, coupled with policy changes and support, the model of real estate enterprises to expand the long-term rental apartment market has become more diversified.

　　Land ushered in the new year of leased land supply

　　After the implementation of the new policy of centralized transfer of land this year, "leasing" has once become a high-frequency word in the real estate market. Many blockbuster documents at the national level frequently mention the need to vigorously develop rental housing. At present, there are 8 cities that focus on the development of rental housing. Increased to over 22 cities, a significant increase in leased land, self-owned transaction construction area far surpassed the level of the previous three years, and construction has become the norm.

　　2021 may become a major year for the supply of leased land.

The number of leased plots involved in the first round of centralized auctions in 22 cities reached 247, and the total transaction area reached 3,944,100 square meters.

According to Crane's rental and sales statistics, the scale of TOP30 real estate companies' acquisition of leased land accounted for more than 60% of the total transaction volume.

More and more operators and developers are acquiring land for lease.

　　It is worth noting that in July, the General Office of the State Council issued the "Opinions on Accelerating the Development of Affordable Rental Housing" clearly stated: "The nature of land use shall not be changed during the period of the use of affordable rental housing, and the land price shall not be paid." "The price is collected in installments" and so on. The transfer of reasonable land prices has greatly reduced the burden on enterprises.

At the same time, the "Opinions" also encourage "rural collective economic organizations to build and operate affordable rental housing through self-construction or joint ventures, equity participation, etc.," so that land acquisition methods have more innovative possibilities and provide affordable rental housing development enterprises. More room to reduce development costs.

　　Guangzhou’s first rigid-demand long-term rental apartment brand created by a state-owned housing leasing company, "Zhushi Xinyu", has announced the launch of its first product. This is the first batch of market-oriented, specialized and large-scale products built by Guangzhou in November 2017. The first batch of products entered the market after the state-owned housing leasing platform.

The first batch of rental housing pilot projects launched in Guangzhou, the Chengpin Yunhui long-term rental apartment under the Urban Investment Housing Company will also be completed by the end of the year.

It can be seen that the participants and participation methods in the long-term rental apartment market are more diverse.