(CBN - Global) April 22 -- Home prices in Shenzhen have risen 60 percent in the past year, leading to a surge in the long-term apartment rentals sector, targeting white-collar workers.
Shenzhen Qianhai Tongliu Hewu Internet Technology Co., operator of the housing leasing platform www.hewoo.in, plans to enter this market by offering free accommodation in such long lease apartments to up to 5,000 eligible college graduates for seven days upon their arrival in Shenzhen.
Agents typically sign five to 10 year contracts with the property owners and then renovate the apartments. They earn a cut from the rent they charge as landlords of the apartments. They can also earn an introduction fee from apartment complexes, by renovating and designing showcase apartments to attract tenants to the complex.
Traditional property developers are also making inroads into this emerging market. Last year, Chinese real-estate giant China Vanke Co. [SHE:000002] announced that long-term apartment leasing would be one of its five new business focuses.
The long-term apartment rental market could surpass Vanke's traditional housing business in terms of volume and revenue should it continue to grow exponentially, Mr. Tan Huajie, senior vice president of Vanke, told CBN.