——Analysis on the market development prospects of China’s long-term rental apartment industry from the demand side: The future market development prospects are broad
The purchase price is daunting
Housing is an essential necessity in people's lives, but since 1997, when my country promoted market-oriented real estate reforms, real estate prices, mainly apartments, have experienced multiple rounds of increases, especially in first-tier cities, where real estate prices are at high levels. According to Databao data, the average unit price of houses in Beijing, Shanghai, Guangzhou and Shenzhen in 2019 was more than 35,000 yuan/square meter, and the housing price in Shenzhen was as high as 65,516 yuan/square meter; while the per capita disposable income in Beijing, Shanghai, Guangzhou and Shenzhen was only 60,000-70,000 yuan/square meter. between yuan. It can be deduced that if people want to buy a single apartment of only 30 square meters in a first-tier city, it will take at least 16 years without food or drink, and it will take up to 31 years in Shenzhen. .
The rental price is much cheaper than the purchase price. In key cities, more than half of the listings are priced below 3,000 yuan, while the proportion of listings is below 4,000 yuan. Reached 67.9%. In the cities of Beijing, Shanghai, Guangzhou and Shenzhen, nearly half of the houses have rental prices below 4,000 yuan.
Renting is more suitable for mobility.
On the other hand, with the acceleration of urbanization, the rapid economic development of first-tier and new first-tier cities and the increase of local jobs, my country has The large-scale migrant population has remained at around 240 million in recent years, of which the migrant population in Beijing, Shanghai, Guangzhou and Shenzhen was more than 7 million in 2019.
In addition, the latest "2020 Employment Trend Report" released by 58.com shows that after the epidemic is over, more than one-third of working people plan to change their working status, and more than 20% People will choose to change city jobs.
In this context of great mobility, renting has highlighted its advantages. First of all, consumers can choose housing according to their own preferences. If they are not satisfied, they can negotiate with the owner or change the house. Secondly, the choice of work location will not be affected by the geographical location of the housing. If the job is changed, consumers can also choose to rent a new house. When both career and love are unstable, it is common for the younger generation to change cities for development, so renting a house becomes much more convenient.
The new generation’s concept of home buying has changed
At the same time, this has also given rise to a change in the concept of future home buying among the younger generation in my country. Like the older generation, buying a house is not a necessity in the life of the younger generation. Do one of the bucket list items. In the 2019 survey of white-collar workers' demand for home purchases, nearly half of my country's white-collar workers can accept renting for a lifetime; while 15% and 11% of white-collar workers said it depends on economic conditions and policy trends, and only 31% cannot accept renting for a lifetime.
Long-term rental apartments can solve the pain points of traditional housing rentals
Driven by this series of environments, the rental population in my country’s rental market has increased year by year in recent years, reaching 220 million people in 2019 , accounting for 92% of the total floating population.
However, there are frequent pain points on the demand side of traditional housing rentals, such as false housing information, opaque rental pricing, opaque hardware facilities, etc. Overall, the tenant experience is not very good. Therefore, long-term rental apartments were born and have become very popular in recent years because they can solve the pain points of traditional housing rentals, such as authentic information and price transparency, and effectively improve the tenants' living experience.
The scale of the long-term rental apartment market is expected to exceed 3 trillion yuan
In 2019, the scale of my country's long-term rental apartment market has reached 1.73 trillion yuan. Based on the above discussion, there is high pressure to buy a house, frequent housing mobility, the change of the new generation's concept of buying a house, and the unique advantages of long-term rental apartments. The future development prospects of the long-term rental apartment market are broad, and the market size is expected to exceed 3 trillion yuan in 2025.
The above data comes from the "China Internet + Long-term Rental Apartment Business Model Innovation and Investment Strategic Planning Analysis Report" by the Qianzhan Industry Research Institute.