Shenzhen is known as a dynamic and innovative city. But when you scratch beneath the surface of this economic powerhouse, you find a residential property market that is causing concern.
Â
Frenzied house sales are starting to affect the rental sector as landlords raise rents in an attempt to cash in on a red hot market.
Â
In May, the average rental price in Shenzhen hit 66.6 CNY per square meter, a jump of 16.35 percent compared to the same period last year, according to the city's Centaline Property Research Center.
Â
As rents rise, residents such as Wen Jing, who works for a media company, are being priced out of the market. Since she works in Futian district, she was keen to find an apartment close to her office.
After looking at several properties in April, she decided to go for a two-bedroom apartment, which was on the market at 4,200 CNY a month, and split the rent with a roommate.
Â
Ken Kan, deputy general manager of the Shenzhen office of Colliers International, a commercial real estate services company based in the United States city of Seattle, put sky-high rents down to the booming property sector.
Â
In June, house prices in Shenzhen went up by 13.67 percent compared to the same period last year, the biggest increase among 100 major cities in China. But there are other factors at play.
Â
According to the National Bureau of Statistics, disposable income per capita in Shenzhen was 40,948 CNY last year, which was 6.9 percent higher than 2013, or 3,412 CNY per month. This year disposable income is expected to reach 43,773 CNY or 3,648 CNY per month.
.jpg)
Shenzhen is known as a dynamic and innovative city. But when you scratch beneath the surface of this economic powerhouse, you find a residential property market that is causing concern.
