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Rents in Chinese Cities Lowest in Nearly Two Years Survey

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BEIJING, Dec 2 Reuters Chinas average home rental prices in 40 major cities fell to their lowest last month in nearly two years, according to a private survey published late on Tuesday, in a sign of deepening weakness in the market.

Average home rental prices in November stood at 34.71 yuan 5.30 per square metredown from 42.65 yuan in October, according to data from Zhuge House Hunter.

Thats the lowest since January 2019, the Chinese property data provider said.

Rents in Beijing in November slumped 7.61 from a year earlier, extending Octobers 3.4 drop, while the southern boomtown of Guangzhou saw a 1.05 decline, its first since January.

Home rents in major cities have fallen this year with businesses hit hard by COVID19, leading to wage cuts and layoffs of new graduates and whitecollar workers.

The decline has also hammered big home rental firms such as New Yorklisted Phoenix Tree Holdings Ltd, known as Danke, which has broken lease contracts and defaulted on payments.

Rents in socalled firsttier cities fell following defaults on payments by Danke, Yuan Chengjian, vice president of Zhuge House Hunter, told Reuters.

Danke officials were not immediately available for comment.

Danke is facing a backlash from tenants, landlords and contractors in Chinas biggest cities including Beijing and Shanghai, according to state media reports.

Danke has more than 110,000 tenants and around 40,000 landlords in Beijing under its belt, staterun China Youth Daily reported.

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