Rents in Beijing and Shanghai's high-end districts have plummeted, with some areas seeing a year-on-year drop of up to 17% in February, according to Beike.
More than two years after strict COVID-19 lockdowns led to an exodus of international businesses and expatriates, China's luxury rental market continues to struggle. Analysts warn that the downturn could persist, given the broader decline in property prices.
In Beijing's central business district, home to over 118 multinational firms, rents fell by as much as 17% year-on-year, reaching 11,385 yuan (US$1,750) per square meter. Upscale areas like Dawanglu and Jianguomen Wai saw rents dip by 6%, contributing to an overall 11% drop in the city's rental prices compared to pre-pandemic levels.
Shanghai has faced similar challenges. Pudong's Lujiazui financial district saw an 8% decline in rents, while those near Jingan Temple dropped by 13%. The city's average rental prices have decreased by 13% since before the pandemic.
"The downturn in these areas isn't new," said Lu Wenxi, an analyst at Centaline Property, emphasizing that rental declines have persisted since the mass departure of expatriates.
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