Understanding Shanghai’s Housing Rental Prices

Understanding Shanghai’s Rental Prices

Many people may feel surprised to find that the rental prices may be so different for the same type of property shown by different agents. This may leave people quite confused about whose quotation is correct, and even after move-in; they may find their neighbor’s rent is lower than theirs. Here are some points to be considered when judging the rental prices.

1. Different Landlords – Some landlords are very eager to start getting returns on their property investments while others may be waiting only for an “ideal” tenant and be content just to watch the property price increase and keep the unit in good condition where it may be liquidated quickly should they want to cash out. Every landlord will have different expectations, some reasonable and some not.

2. Location – Compound/Property location plays a very important role in the rental price. If the compounds are downtown, or popular areas frequented by expats the price is usually much higher.

3. Floor Level – Higher floors usually have better views of the city and more natural light, so the price is usually more expensive.

4. Property condition, including furniture/appliances/decoration – If the property has good quality furniture and decoration, with good brand appliances, or with a garden (for villas), the rental will be higher.

5. Supplies and demands when negotiating/signing the contract – there are different types of properties on the market for rent: Villas, serviced apartments, privately owned apartments etc. Different types of properties have different target customers, and if the demands of the target customers are not what were expected, prices will be easier to negotiate. In regards to the number of expats in China, the leasing market has a peak season (usually around October to February, where fewer relocate), usually the rental level is higher in peak seasons as there is more demand from the market. China’s government sales policy also affects the leasing market and local people may tend to rent properties as well, creating more demand in the leasing market.

6. Rental Inclusive Packages and Tenant’s Personal Requirements – Normally the rental package can include certain personal requirements, including management fee, tax, club membership fee, satellite TV installation and subscription fee, air conditioner maintenance, garden maintenance fee, parking fee, etc. The more personal requirements from tenants, the higher the rent will be.

7. The Rental Market Changes quite frequently - Landlords may increase or decrease the rental when it comes to renewing the lease given the market status at the time. To protect our expats and save you time from having to move again when the 1^st lease term expires, we would advise you to visit properties starting from a price of around 5-10% of your housing budget; and of course, there will also be a rental decrease for different properties given the market situation. Our property consultants will also try to bargain the price with the landlord to save the cost for your clients.

Noise: If you are sensitive to noise, you may wish to consider avoiding the following:

BRAND NEW PROPERTIES

Since every individual landlord in the building will have their own time schedule to decorate their property, you may be constantly subjected to hammering, drilling and renovation noises. Definitely annoying!

PROPERTIES NEARBY LARGE EMPTY LOTS

No one can say for sure what will happen with empty lots but most likely its construction! Think loud construction noises and lots of dust and particles in the air. Even if the consultant does the best to check about the future of that empty lot, no one can guarantee what will really happen.

PROPERTIES FACING THE ROAD

Since most windows in Chinese housing are not very efficient at blocking out noise, try to avoid properties that are facing the road no matter if it is a main road or small road. Single pane glass windows are not good at keeping out noise, so double glazed windows are recommended if you are concerned about external noise.