New property rules driving rent prices
The demand for apartments in China's first-tier cities continues to boom despite the soaring cost of rent, driven in part by the government's stricter policies for home purchases and the large numbers of migrant workers who came to big cities after the Spring Festival holidays.By January, the country's real estate rents had risen by 7.1 percent above what they were a year earlier,
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"My landlord has charged an extra 200 yuan ($30) a month and we have to accept it,
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In the capital,
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Studies from the marketing department of Woaiwojia, a large real estate agency selling second-hand homes in Beijing, show that more than 30 percent of potential buyers will be affected by the measures meant to deflate bubbles in property values.About 64.5 percent of the city's second-hand property buyers do not have a Beijing hukou. And fewer than half of them can prove they have paid taxes for five years, the house agency said in its official blog on sina.com.
"Many people have been prevented from buying an apartment," Hu Jinghui, vice-president of the company, was quoted by Guangzhou-based Yangcheng Evening News as saying. "So more and more are turning to the rental market."The situation is similar in China's economic hub, Shanghai, which in 2010 ranked as the 24th most expensive city in the world to rent a house in, according to the latest report released by ECA International Ltd, an international human resources consulting firm.
The house-leasing business has been booming in Shanghai since the fourth quarter of 2010. By February, rents had risen from 5 percent to 15 percent,
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"The government has to impose stricter restrictions on home purchases,
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