Refer China: China's Top-Tier Cities Rents Rise 3 Months in a Row

Nationwide rents fell 0.11% to 33.94 yuan/sqm/month in May, but first-tier cities saw a 0.16% rise—the third straight month of recovery. Shanghai led with +0.51%, while Guangzhou dipped 0.25%. Peak season drives demand for renovated units.

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China Real Estate

Residential Rent Index

First-Tier Cities

Rental Recovery

Peak Renting Season

Average Rents in China's Top-tier Cities Rise for 3 Months; Did Your Rent Go Up Too?

The residential leasing market in China is going through a bit of a split personality phase right now. According to the China Index Academy's 50-City Residential Rent Index, the nationwide average residential rent fell slightly by 0.11% month-on-month in May to 33.94 yuan per square meter per month. Compared to the same period last year, it dropped by 3.17%.

But here is the twist: while the broader market is definitely feeling the pressure, first-tier cities are playing by their own rules and moving upward.

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In May, first-tier cities saw their average residential rents tick up by 0.16% month-on-month. This caps off three straight months of continuous recovery. Meanwhile, second-tier cities watched their rents drop by 0.27%, which is actually a faster decline than what they experienced in April, and representative third- and fourth-tier cities slid by 0.20%.

If we look at the bigger picture, even though the national average is still down, the size of those drops is shrinking noticeably. Back in May 2024 and May 2025, the 50-city average rent fell by 0.3% or more month-on-month. The fact that it only dipped 0.11% this May shows that the deep market adjustments are losing steam. Another positive sign is that more top-tier cities are seeing their rents climb. Out of the top 20 cities for residential rents, seven posted month-on-month gains in May: Shanghai, Shenzhen, Beijing, Tianjin, Suzhou, Dalian, and Fuzhou. Notice a pattern? They are almost entirely first-tier cities and strong regional hubs where most expats tend to live and work.

Shanghai’s rents climbed 0.51% month-on-month, Shenzhen went up 0.13%, and Beijing rose 0.07%, while Guangzhou bucked the trend slightly by dropping 0.25%.

On the ground, real estate professionals in Shenzhen are already feeling the shift. An agent in Shenzhen’s Nanshan district who focuses on high-end properties shared their perspective, noting that the several housing estates they track have been quite easy to rent out since the Spring Festival, though the year-on-year rent changes are not yet very obvious.

This agent pointed out a very specific trend in the luxury market right now: the rent gap within the exact same neighborhood is widening significantly. A well-renovated apartment can fetch over 30,000 yuan a month, while an unrenovated one struggles to rent out even at 15,000 yuan. Tenants' expectations are changing, and properties that are well-maintained are becoming much more popular, which is a major driver behind the rent increases. If you are looking for a place with Western amenities or a modern finish, expect to pay a premium.

Over in Guangzhou's Tianhe district, another agent reported a busy season, explaining that because it is currently peak renting season, any housing source that is good enough and new enough gets snatched up almost immediately.

Source: 21世纪经济报道