BUSINESS Report shows 12% of housing vacancy rate

BUSINESS

Report shows 12% of housing vacancy rate

China Daily

16:57, August 05, 2022


Potential homebuyers check housing project models at a real estate agency in Qingzhou, Shandong province, in December. (Photo: China Daily)

The average rate of unoccupied houses in 28 Chinese main cities is 12 percent this year, The Paper reported on Friday, citing a report from the real estate market consulting Beike Research Institute.

The vacancy rate in Shenzhen, Beijing and Shanghai stood at the low figure of below 7 percent, while the rate in Nanchang, Langfang and Foshan is over 15 percent.

The report said that the average housing vacancy rate in first-tier cities is 7 percent, second-tier cities is 12 percent, and third-tier cities is 16 percent.

The threshold for house buying, degree of population aging and rate of return for leasing all affect the housing vacancy rate, said the report.

The cities with some of the highest proportions of the aging population or with the highest housing vacancy rates, are Nantong and Chongqing, the proportion of the aging population and housing vacancy rate are 23 percent and 15 percent, and 17 percent and 17 percent, respectively.

Shenzhen has a lower aging population at 3.2 percent, and its housing vacancy rate is only 5.3 percent, which shows a strong potential for the real estate market, the report said.

Moreover, the cities with high house prices, mortgage loan costs and rental returns and where the housing vacancy rate is low are Beijing and Shanghai.

The old community has a low vacancy rate due to the convenient transportation facilities and good education resources in the city's downtown areas.

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