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Home buy limit drives rent to soar in Beijing

Updated: 2011-08-15 17:05

By Qiang Xiaoji (chinadaily.com.cn)

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Housing prices have been relatively stable and slightly reduced in Beijing since the strictest "home purchase limit" was implemented six months ago. However, while the demand for purchasing has dropped, the trend of renting has led to increasing rent prices, Beijing Times reported Monday.

Due to soaring prices, many residents now spend over 25 percent of their salary on rent. Some people are forced to share apartments, some consider moving to places further away from the center of the city and some even consider leaving the capital.

Statistics from a housing agent shows that, in the first seven months of this year, the rent for an apartment in Beijing averaged 3,160 yuan, up 13 percent from the 2,793 yuan last year. In July, the average rent per unit in Beijing was 3,229 yuan, an increase of 161 yuan from February when the "home purchase limit" was announced. In popular areas such as the Central Business District (CBD) and Zhongguancun area, the average rent has gone up by more than 20 percent and apartments continue to be in short supply.

The increase cannot be controlled by regulations because rent prices are market-oriented, the report said

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