Rising rents are not a bubble

Rising rents in the capital, according to experts, reflect the growing housing need in the city and are not a sign of a bubble, according to an article in Beijing News (excerpts below).

For the past ten years, the growth of housing prices in China has been much higher than the increase in rents. Most real estate investors make their profits on housing appreciation, rather than rental income.

But property appreciation now is much less than the rising rents.

In March, property prices increased by 2.9 percent, which is obviously less than the growth in rent at 8.4 percent.

Property curbs and a rising population have contributed to this. Rents may be rising but it is not a property bubble.