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Shanghai actively promotes the affordable rental housing system, and C-REITs empower the development of high-quality rental housing market

shanghai new 1530 EN

In recent years, Shanghai Chengtou Group has been actively promoting the construction and operation of affordable rental housing projects and launched the "Chengtou Kuanting" rental housing brand with the connotation of "comfortable living, attentive service, and comfortable living experience”. Currently, Shanghai Chengtou Group has nine rental residential projects, including one transformed from office, one government sponsored rental residence, and seven rental residential lands. At present, "Chengtou Kuanting" Rental Apartments has the footprints across Minhang, Pudong, Yangpu, Lingang New Area and other areas in Shanghai. Looking forward, Shanghai Chengtou Group would further cooperate with Fudan University, Shanghai Jiaotong University, COMAC, Zhangjiang Science and Technology Park, and Shanghai Airport Group, Disney Company etc., to provide customized rental housing services. 

Colliers View:

Shanghai has been promoting the development of rental housing market by increasing the land supply of affordable rental apartments. More than 15 state-owned enterprises have undertaken the mission to develop and operate rental apartments. It is expected that the affordable rental housing market will witness a booming growth in supply to address the unserved demand. The stable affordability of the young professionals and the rather low land acquisition cost allows a satisfactory rental income yield for the investors. In return, the high-quality rental residential projects would attract more invested capital. As an innovative financing tool, REITs are expected to not only provide an exit channel for developers of affordable rental housing, but also regulate and standardize the healthy development of the rental housing market.