(Yicai Global) Aug. 21 -- Ten major leasing agencies in the Chinese capital have agreed to keep their rental prices at market rates after a request from the Beijing Real Estate Agency Association.
Executives from the intermediaries, which included Homelink and 5i5j, pledged at a BREAA symposium yesterday that they would not aim to capture more housing resources by hiking prices, pooling funds through bank loans or pushing landlords into terminating contracts so they can charge tenants more, Beijing Evening News reported. The agencies also agreed to release 120,000 more houses to the market.
Summer is a peak season in China's rental market as graduates start to make their way into the working world, and prices are set to hit a year high as agencies and investment firms in the nation's biggest cities, like Beijing and Shanghai, look to land larger market shares by upping prices so they can buy more properties.
Rents in Beijing, Shanghai and Shenzhen all increased by more than 2 percent last month compared with a year earlier, according to data from leasing agent Lianjia. Second-tier cities saw similar rises, with prices in Nanjing rising by 3.7 percent and those in the most popular districts of some metropolises soaring nearly 20 percent.
Editor: James Boynton