New demographic trends, rising thresholds for home purchases, supportive policies, capital investment and other market fundamentals have continued to strengthen and accelerate the rental housing industry’s pace of development. Following a period of reshuffling and segmentation, companies that maintained steady operations have successfully developed business models suitable for long-term development. At the same time, China’s rental housing market has also attracted broad attention from international investors.
In the future, rental housing investment in China will meet further opportunities as well as challenges; key market participants will need to pursue broader and deeper cooperation to continue facilitating the market’s further development. As the REITs pilot program continues to grow in scale, its scope will be expanded to also include market-based rental housing, making the rental housing sector another blue ocean for China's REITs. An increasing number of long-term investors will expect REITs exit to emerge as one of the main exit strategies for their medium to long-term investments in rental housing.
China rental housing white pager 2021
Under the multiple effects of policy support, demand release, and supply optimization, China's rental housing market is growing rapidly. Recently, the China Banking and Insurance Regulatory Commission’s announced it would promote insurance funds to support the development of the rental housing market, while also advancing the REITs pilot in conjunction with the People’s Bank of China.