A SHENZHEN-BASED property developer is constructing 420 large apartments in a residential estate in Futian District. The apartments will only be available for lease and not for sale.
The residential estate, located on Nongfang Road in the Xiangmihu area, is being developed by Shum Yip Group, a developer owned by the Shenzhen Municipal Government. The average housing price in the Xiangmihu area is above 100,000 yuan (US$15,152) per square meter, while the monthly rent of a three-bedroom apartment is usually above 10,000 yuan.
The project is expected to be completed by the end of next year, when the 420 apartments will be put on the market for lease. All of the apartments are furnished and most of them are larger than 170 square meters.
Dong Fang, vice president of Shum Yip Group, said the company is exploring a way to transition by offering high-end long-term rental apartments.
Dong said the company has launched several long-term rental housing projects, including one project that renovated old apartments in Shuiwei Village into rental flats.
An industry insider said leasing out the apartments instead of selling them can help property developers create long-term business benefits as the government has introduced new policies to tame the property market. He said the long-term rental housing projects will enlarge the housing supply and promote the healthy and steady development of the real estate market.