(Yicai) Aug. 6 -- Some Chinese areas have started acting on the government's request that idle and inefficient office buildings, as well as some factories and other similar assets, be revitalized and transformed into affordable rental housing.

The proportion of renovated homes in newly launched rental projects increased by 7 percentage points in the first half of this year from a year earlier, according to data from CRIC Long-Term Rental.

For example, a high-rise office building in Shenzhen's Nanshan district was converted into affordable rental for local workers in the first half, with the occupancy rate quickly reaching 95 percent. The renovation added an air runway, shared kitchen, gym, audio-visual room, and other public facilities to the building, where over 80 percent of the 744 condos are small units ranging from 43 to 60 square meters.

Transforming idle office buildings into rental housing benefits multiple parties, Xiao Wei, head of the strategic advisory department at the China arm of US commercial real estate services and investment firm CBRE Group, told Yicai.

Through such renovation projects, the government supplements the supply of affordable housing, revitalizes inefficient assets, helps the former owners of such properties recover funds, and gives citizens access to affordable homes of relatively good quality, Xiao noted.

Shenzhen's move was the first case where the local government funded the purchase of an idle office building and transformed it into affordable rental. The project renovation, construction, and ensuing operation and management are all implemented by local state-owned enterprises.

In addition, similar renovated rental housing projects have entered the market in Shanghai, Beijing, and other major cities.

The 376 million migrant population in China forms the most stable basic demand for the home rental market, CRIC Long-Term Rental noted. Due to high house prices, which have suppressed purchase demand in Beijing and Shanghai, residents are more willing to rent, with strong demand in Guangzhou, Shenzhen, and most second-tier cities, thanks to net population inflows, it stressed.

Editors: Tang Shihua, Martin Kadiev