Hubble, Bubble, Toil and Trouble: Beijing’s Rising Rents

Coming to the end of your lease? He or she may be all smiles when you pay the rent, but your landlord may be getting ready for an unpleasant shock. Despite the numerous ratcheting efforts to curb Beijing’s housing bubble, Beijing rents are still going up – and fast. According to the Economic Observer, prices have increased by nearly 150 percent over the past 10 years and now average around RMB 4,238 a month, as compared to RMB 1,723 less than ten years ago in 2004. These figures don’t even come close to reflecting the mind-boggling prices some apartments in Beijing are going for – Beijing property as less often bought as rental money-makers (as so often seen in the US and UK) than as sheer capital investment. What’s the point keeping your spare cash in the bank, if all that Bank of China can offer you is three per cent, which doesn’t even keep pace with inflation?

For more on rising rents, head to Agendabeijing.com.

Photo: Francisco Anzola on Flickr