1、ab22 July 2025Global ResearchFirst ReadChina PropertyUnveiling Regulations on Rental Market Could be challenging to physical market recoveryOn July 21,the Chinese government unveiled regulations on the rental market effective Sept 15th,with an aim to promote rental housing.This suggests the governme

2、nt places higher importance on the rental market,in line with our thoughts outlined in China Property|APAC Focus:Deleveraging Series 5:Rental Market.However,we think this may be challenging to physical residential market recovery as rising rental housing supply from conversion may suppress rental pr

3、ices,and promotion of the rental market may encourage more people to rent rather than purchase a property.Promoting rental market The regulation includes:1)encouraging more rental housing supply by converting commercial,office,industrial buildings to rental properties for residential purposes;2)city

4、 level government should establish monitoring mechanisms on housing rents and publish rental prices regularly(our view:government may step in if rental prices see large volatility);3)rental agencies must verify and record the information of the entrusting parties,conduct on-site inspections of the p

5、roperties before listing,and clearly mark the prices of their services(our view:to avoid fake listing),4)fostering market-oriented,professional housing rental enterprises as most rental supply is from individual homeowners rather than enterprises.This report has been prepared by UBS Securities Asia

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