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China wants to cap rental prices - an increase of a maximum of five percent per year

2021-09-01T11:39:17.546Z


In Berlin, the rent cap has failed - and there is no corresponding law in sight at the federal level. In China, the cost of an apartment is only expected to rise to a limited extent in the future.


Enlarge image

Apartment blocks in Wuhan: 70 percent of new residents and young people are renters in the big cities of China

Photo: Koki Kataoka / AP

Homeownership is also inaccessible for many millennials in China.

Rental apartments are correspondingly popular, but they are becoming more and more expensive.

In order to create more affordable living space, the Chinese government now wants to react to the tense situation on the housing market with a rent brake.

A kind of rent cap is planned, according to which the cost of renting an apartment in cities may in future rise by a maximum of five percent per year.

The proposed cap is part of President Xi Jinping's promise to narrow the social gap in the world's second largest economy and achieve "common prosperity."

In Germany, a similar advance by the Berlin Senate had recently failed.

The Senate tried to cap rents in the capital.

The rise in rental prices should be curbed by freezing rents for 1.5 million apartments at the June 2019 level.

However, the Federal Constitutional Court overturned this rule - the city-state does not have the power to do so.

A nationwide regulation is called for by the left, but seems out of reach.

However, there are other rules in Germany to stop the rapid rise in rents - such as the rent brake for new leases or a cap on existing tenancies.

Beijing and Shenzhen are increasing the supply of rental apartments

The Chinese capital Beijing and the economic metropolis of Shenzhen have now started to increase the supply of rental apartments.

In the past few months, several major cities have also planned new regulations on renting out apartments.

They should better protect the rights of tenants.

For example, landlords should be prohibited from asking for deposits of more than one month's rent.

In Germany, up to three cold rents can be requested as a deposit.

The Chinese authorities also want to take stronger action against real estate agents and online platforms if they charge excessive fees from tenants.

The demand for rental housing in China is mostly concentrated in the largest cities, which offer higher-paying jobs and the most employment opportunities - especially for college graduates.

"New townspeople and young people have only been working for a relatively short time and have low incomes, making it difficult for them to buy a house or pay rent," said Assistant Housing Minister Ni Hong.

In the big cities, 70 percent of new residents and young people would rent an apartment.

According to data from the independent real estate researcher Zhuge House, rental prices for apartments fell 0.35 percent in August compared to the previous month.

They had reached a seasonal high in early summer.

apr / Reuters

Source: spiegel

All business articles on 2021-09-01

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