With house prices rocketing, China aims to boost rentals

[BEIJING] China on Friday released a set of policies aimed at promoting the home rental market, state media said, as surging prices in major cities make housing unaffordable for many and raise fears of a bubble.

The world's second-biggest economy is enduring its weakest growth in a quarter of a century, and while the property market remains subdued outside larger cities, banks are lending more to homebuyers and developers than at any time since at least the global financial crisis.

Beijing hopes the measures will encourage property developers to offer more rentals, regulate rental agencies and protect renters' interests, the official Xinhua news agency said.

Among the policies, commercial property will qualify for rental use and tax breaks will be given to certain businesses, Xinhua said.

In April, average home prices in China's largest cities rose at their fastest in four years, fuelled by six interest rate cuts since 2014 and easier downpayments.

REUTERS