Shenzhen Plans to Set Annual Rent Hike Cap at 5% With Pilot
Chen Shuzhen
/SOURCE : Yicai
Shenzhen Plans to Set Annual Rent Hike Cap at 5% With Pilot

(Yicai Global) Aug. 30 -- The local government of southern China's megacity of Shenzhen is considering cooperation with property developers to provide house leasing with an annual price growth of no more than 5 percent to curb rent hikes.

Shenzhen is mulling the launch of such new rental program for those who work in the city and have paid social insurance for at least one year but have not purchased a house yet, said Fu Feifei, an official at the Urban Planning, Land & Resources Commission. Fu told this to Yicai Global at a property forum yesterday.

Rents to pay for accommodation in China's big cities have risen sharply. Shenzhen's house rent index has climbed for 11 months and such fees increased over 3 percent in the first seven months of this year, which is slightly higher than the consumer price index during the same period, data from the National Bureau of Statistics show. CPI measures changes in price levels of a basket of consumer goods and services.

Under the new scheme, lease contracts would be signed online and rents would also be paid digitally. The management system would share data with the property regulator and the city's police force. Applicants would be sorted out by their time of application.

Shenzhen intends to include two local state-owned enterprises' joint property project in the pilot. The residential project invested by transit infrastructure firm Shenzhen Metro Group and real estate developer Shum Yip Group will be rented out by May 2019.

Editor: Emmi Laine

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Keywords: Shenzhen , House Renting , CPI , State-Owned Enterprises , Shenzhen Metro Group , Shum Yip Group Limited , National Bureau of Statistics