With the retreat of the Spring Festival renting season, the turnover of Beijing apartments leasing market in April has declined, but the rent remains the same. Real Estate experts said Beijing apartments leasing market is under transition from the Spring Festival renting season to the summer peak season, the turnover is going to rise as graduates begin to consider renting gradually.

The apartments rental volume declined in April

According to the statistics of Market Research Institute of Woaiwojia Real Estate Group, in April this year, the total number of residential rental transaction of Woaiwojia Real Estate Group in Beijing decreased by 19.3% on a month on month basis and increased by 16.1% compared the same period last year. 

According to Hu Jinghui, the dean of Market Research Institute of Woaiwojia Real Estate Group, in the light of the past market rule, March is the peak of people return to Beijing after the Spring Festival, the renting demand is exuberant, and it is the first peak of Beijing apartments leasing market in a year. Then, with the centralized settlement of renting demand in March, the transaction volume of Beijing apartments leasing market drops in April. From 2017 to April this year, the monthly turnover trend of Beijing apartments leasing market shows that the change rule of this traditional peak season is still in operation.

Rent is steady in April

The data from Market Research Institute of Woaiwojia Real Estate Group shows that the average monthly rent of Beijing apartments leasing market was 4564 Yuan per unit in April this year, and it was 59 Yuan higher than in March per unit, the increase is 1.3%, the fluctuation is small, and the trend is stable. Compared with April 2017, the monthly rent rose by 4%. 

Based on the monthly rent trend of Beijing apartments leasing market from 2017 to present, the rent trend, from December 2017 to February this year, is stable, rent is even lower than the same period in 2017. After entering the peak season of March this year, under the influence of centrally released market demand, the rent of Beijing apartments leasing market has been rising to a certain extent no matter on a month on month basis or on a year on year basis, but the demand of apartment leasing market in Beijing declined in April, it led to a decrease in turnover and a stability in rent. 

Hu Jinghui said, "in April this year, the average monthly rent of the general leasing transaction of Woaiwojia Real Estate Group rose by 3.4% compared with March and rose by 9.83% compared with the same period of last year. But the average monthly rent of the long-term leasing transaction was only increased by 0.8% compared with March, and only increased by 2.7% on year on year basis, much less than the ordinary lease. It can be seen that the rent of general leasing increased more in the current market, while the long-term leasing apartments led to a lower rent in the market. 

2 bedrooms apartments are favored by the market

According to the statistics of Woaiwojia Real Estate Group, from the apartment layout point of view, the turnover of Beijing apartments leasing market in April this year, the transaction of 1 bedroom’s apartments accounted for 32.6%, which is 2% higher than in March; the turnover of 2 bedrooms apartments accounted for 51.7%, which is 1.6% lower than in March; and the transaction ratio of 3 bedrooms apartments and above accounted for 15.7%, which is 0.4% lower than in March. From the data of the first four months of this year, the turnover of 2 bedrooms apartments accounted for more than 50% of the turnover of Beijing apartments leasing market, 1 bedroom accounted for over 30%, and 3 bedrooms apartments and above accounted for around 15%, the turnover trend of overall layouts remained stable, little changes.

From the age distribution perspective, the post 80s of Beijing tenants in April this year is still the main crowd, accounting for 42.6% of all tenants, 1.6% higher than in March; the post 90s are in the second place, accounting for 27.8% of all tenants and 0.7% lower than in March; the post 70s accounted for 16.3% in the third place, and 1.4% lower than in March. The rest accounted for 13.2%, increased by 0.5% compared with March. Although the fluctuation of proportion of all ages in April this year was slightly larger than that in the first 3 months, the overall structure remained stable.

Beijing will receive apartments rental peak season in summer 

The dean of Market Research Institute of Woaiwojia Real Estate Group Hu Jinghui thinks that from 2017 to this year, the overall performance of Beijing apartments leasing market is stable, the transaction volume and rent are obviously rising and falling with the change of low and high season. Despite the surge in demand due to special event at the end of last year, which resulted a short time increase in turnover and rent, the market quickly returned to the steady trend of the off-season, and it was not up until the peak season of March. No matter the short-term fluctuation at the end of last year or the fluctuation of rent and turnover brought by the peak season of this spring, the apartments leasing market of Beijing is still a market driven by market supply and demand, and the change of market supply and demand will soon be reflected on the volume of transactions and the price of transactions. 

"April and May have always been the transition period of Beijing apartments leasing market from spring peak season to summer peak season. Maintaining stability is the general trend of the market. Therefore, whether the turnover of Beijing apartments leasing market is going up or going down, the fluctuation range of rent will be very small in May, and the transaction volume will increase as graduates begin to consider renting gradually." Hu Jinghui said.