Core Insights - The rental market is facing a significant downturn, with a high vacancy rate despite an increase in available rental properties, leading landlords to prefer leaving properties vacant rather than renting them out at low prices [1][4][5] Market Conditions - In July, the number of new rental listings in 55 cities reached 618,000, the highest in nearly three years, while rental prices have been declining for 11 consecutive months [1][4] - The rental prices in these cities fell by 3.52% month-on-month and have seen a year-on-year decline, with Shanghai experiencing an 11.78% drop, while Wuhan saw a 3% increase due to rising demand from graduates [4][5] Landlord Challenges - Low rental yields are causing landlords to abandon the "rent to pay mortgage" strategy, as rental returns in first-tier cities are generally below 1.5%, leading to financial losses when considering loan interest [5] - The upcoming Housing Rental Regulations, effective September 15, will impose mandatory contract registration and tax compliance, increasing operational costs for landlords [5][7] - Concerns over problematic tenants, such as property damage and rent defaults, are prompting landlords to be more selective, often choosing to leave properties vacant rather than risk losses [5][6] Tenant Behavior - Economic changes are leading tenants to downgrade their living conditions, giving them more bargaining power in rental negotiations [6] Policy Adjustments - The new Housing Rental Regulations aim to create a more structured rental market, including mandatory contract registration and equal rights for renters, although implementation may take time [7][8] - The national strategy is shifting from "homeownership for all" to "housing for all," focusing on improving living quality rather than just ownership [8] Future Outlook - Landlords are encouraged to adjust their expectations and improve property quality to maintain competitiveness in a declining rental market [12] - Tenants are expected to benefit from increased negotiation power, particularly in non-core areas, with potential rental reductions of up to 50% [12] - The implementation of the new regulations is anticipated to end the chaotic growth phase of the rental market, leading to a more regulated and beneficial environment for both landlords and tenants [12]

A Polish residential rental provider Resi4Rent, partly owned by Echo Investment, agreed to sell some real estate assets to TAG Immobilien’s unit for €565 million ($660 million). https://t.co/XrI5gKPTjO ...