It is not a single phenomenon that the rental market is cold. There are similar situations in many cities in China, such as Zhengzhou, Guangzhou, Shanghai, Beijing, etc. According to the report on the trend of renting houses in key cities in June of 58 same city and well-off residents, the heat of rental housing market in first tier cities dropped significantly, with Shanghai and Shenzhen rental markets falling 9.1% and 12.4% month on month in June.
Industry analysis shows that the cold leasing market is not only a game between supply and demand, but also reveals the current situation of small and medium-sized enterprises operating difficulties and the decline of wage earners ability to pay. According to the securities times and data treasure, a large number of local labor force in Hubei province did not flow into other cities until the epidemic situation improved significantly in April. Many middle-aged workers chose to look for jobs near their hometown. On the one hand, they could take care of their families; on the other hand, they were worried about the recurrence of the epidemic situation; and thirdly, they could save extra expenses on renting houses. Even young people have been told that the demand for labor has declined and they are forced to return home.
Photo source: CCTV financial channel video capture
According to the data of Chinas real estate market platform, data bank statistics found that the rent levels of residential, office and shop areas have all rebounded. For office workers living in the first and second tier cities, the change of urban housing level is closely related to us, so what are the changes of urban residential rent?
According to the data, nearly 75% of the more than 300 cities across the country saw a year-on-year rise in housing rental prices in June, and 9 cities, including Dehong, Loudi, Wuhai, Yaan, Fushun, Hengyang, Jiamusi, Chuxiong and Linxia, increased by more than 20% year-on-year, all of which are non provincial capitals. Fangchenggang, Shuangyashan and Datong are also non capital cities with a year-on-year decrease of more than 10%.
Among the provincial capital cities, the biggest year-on-year increase was in Wuhan. In June, the urban residential rental price increased by 13.92%. According to well-known rental platform data, Wuhan rental market has been bullish for several weeks. During the epidemic period, the economic situation was sluggish, the employment environment was difficult, the unemployment rate was rising, and the activity of the rental market decreased. With the gradual disappearance of the epidemic situation, the rental market slowly recovered, and the rent entered a stable growth period.
On a month on month basis, about 67% of the cities saw a month on month increase in housing rental prices compared with May. Diqing, Wuhai, Chaoyang, Qitaihe and other four cities rose by more than 10% on a month on month basis, while Yichun and Hotan only saw a decline of more than 10% month on month. Beijing, Shanghai, Shenzhen, Guangzhou and other four first tier cities saw a month on month rise in rent prices, of which Shenzhen rose by 5.69%, while the other three first tier cities rose by about 1%.
The fluctuation of rent price also has a certain impact on A-share property leasing enterprises. According to statistics, the net profits of Nanshan holdings, Oceanwide holdings, sunshine shares, royal court international, China Merchants Shekou, financial street and other companies with property leasing business are expected to decline in the first half of the year. Novel coronavirus pneumonia is the case in Financial Street. The sales and project progress of the company is not as good as expected, and the income and profits of the project have declined. At the same time, the passenger flow and sales volume of the companys business projects decreased significantly. The company reduced the rent for small and medium-sized enterprise customers, resulting in the decline of income and profit. It is estimated that the net profit in the first half of the year is about 210 million yuan to 316 million yuan, with a year-on-year decrease of 70% to 80%.
Companies whose main business is online real estate brokerage business have also been hit. I love my family is the leading real estate agency in China. Affected by the epidemic situation, some clients chose to postpone the transaction due to the closure of the community, which had a certain impact on the real estate brokerage business in the first half of the year. The company estimates that the net profit in the first half of the year will be 30 million yuan to 45 million yuan, with a year-on-year decrease of 88.19% to 92.12%. The company also said that during the reporting period, new modes such as online VR house watching and online contract signing were mainly arranged to serve reserved customers. At the beginning of April, the demand was released rapidly, and the market rebounded. By the end of June, the good trading situation continued. The above suppressed demand is expected to release gradually in the following months.
Another real estate agency, worldlink bank, also encountered a similar situation. The company said in its performance forecast that with the opening of sales offices in various parts of China after March, and the company actively promoted online house watching and smart case market services to reserve customers during the epidemic period, the trading service business gradually improved. Due to the long time required for revenue recognition, the transaction service business income in this period tends to be the same as that of the previous year Period level. The net profit of the company in the second quarter of 2020 is positive, and the loss range in the first half of 2020 is narrowed. It is estimated that the net profit loss in the first half of the year will be 65 million yuan to 84 million yuan. (data treasure Liang Qiangang)
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