State Council Promotes Renting As Solution to...

The State Council is promoting the rental market in top-tier cities, but rental yields are already pitiful:
May 4 State Council held an executive meeting to determine the measures to nurture and develop the housing rental market, promote new urbanization to meet the housing needs of the masses.  

Renting ROI How?   

According to the agency's statistics, in Shanghai, to remove all kinds of fees, rent is only about 1.5 per cent rate of return, such as an apartment located in Pudong inner ring, the annual rental income of about 80,000 yuan, while the price has been as high 6 million to 8 million yuan. "A lot of investors in the property market in Shanghai, the rental property is not valued lease return, but to the interests of the harvest Property prices and rental income both." Analysts pointed out.  

"But the return on investment rental market has grown rapidly, basically an average increase of 10%, which is higher than the national house prices rose 7% of the value is much larger." Shanghai E-House, Vice President Yan Yuejin representation.
Investors are buying rental properties because they provide some cash income, but the bulk of the return is still price appreciation.

The government already has a solution to this dilemma if it wants to increase rental units: property tax. It has slowed and delayed implementation for fear of a negative impact on home prices.

iFeng: 国务院扶持租房市场 打开楼市投资新机遇?

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