What does collective renting mean?

This model aims to solve the problem of difficult and expensive renting for ordinary urban residents, provide more rental options and improve residents' living conditions.

Unified lease refers to the rental housing managed and rented by the government or relevant institutions. At present, many cities in China are promoting unified rental housing, mainly in first-tier cities such as Beijing, Shanghai and Shenzhen.

The contradiction between supply and demand in the rental market in these cities is prominent, with high rents and difficulty in renting houses, especially for young people and low-income groups. Therefore, the promotion of unified rental housing has become an attempt to solve this problem. Unified rental housing has an important impact on the real estate market.

First of all, unified rent can effectively alleviate the contradiction between supply and demand in the rental market and increase the supply of rental housing. Unified management and rental of houses by the government or relevant institutions can improve the utilization rate of houses, reduce idle houses, increase the choice of renting houses and reduce the pressure of renting houses.

Secondly, unified leasing can standardize the leasing market and improve the quality of leasing services. Houses managed and rented by the government or relevant institutions can strengthen the supervision of housing quality and rent, and provide more standardized and reliable rental services. This will help to improve the transparency and fairness of the rental market and protect the rights and interests of tenants.

Third, unified renting can promote the healthy development of the real estate market. At present, China's real estate market relies too much on buying houses, which leads to high housing prices and increased risk of real estate bubble. Promoting unified renting can guide residents to choose renting houses more rationally, reduce the demand for buying houses, and help stabilize the real estate market and prevent real estate risks.

Background of unified lease policy

As early as 20021year, the General Office of the State Council issued the Opinions on Accelerating the Development of Affordable Rental Housing, requiring all localities to speed up the construction of affordable rental housing and provide support in land policy, simplifying the examination and approval process, central subsidy funds, tax reduction and exemption, and finance.

At the end of 2022, the Ministry of Finance also issued a special document to increase financial support for the construction of affordable housing in Shenzhen, and various localities also reported plans for the construction of affordable rental housing.

However, Shenzhen lacks land, and the land price is too high to be used for the construction of affordable housing, because this means that the income from land transfer fees is reduced. From the perspective of Shenzhen, the construction cost of affordable rental housing must be calculated by adding the market price of land.

In other words, the construction cost of affordable rental housing in Shenzhen is roughly equivalent to the cost of commercial housing, while the cost of unified rental housing will obviously be much lower, which should also be one of the reasons for the introduction of unified rental housing.