(Yicai) Aug. 10 -- Housing rents in China’s first-tier cities rose for the fifth consecutive month in July, supported by a broader property market recovery and a seasonal wave of demand from university graduates entering the workforce.

The average rent in first-tier cities inched up 0.4 percent last month from June, according to the latest data from the China Index Academy, an industry think tank. Beijing, Shanghai, and Shenzhen continued to lead the rebound, while the pickup in Guangzhou remained comparatively subdued.

Of the country’s 50 key cities, Shanghai has topped the ranking for rent increases for four straight months. All of its 16 districts reported month-on-month rent rises, with those in central Hongkou and Huangpu districts up by more than 1 percent.

Beijing recorded a further gain in July from the previous month. The number of districts in the capital reporting higher rents increased to 15 out of the total of 16, five more than in June. In Shenzhen, seven of the nine districts logged month-on-month growth.

Meanwhile, rental markets in second-tier cities were basically unchanged, and those of third- and fourth-tier cities inched up 0.02 percent, ending a 24-month decline, the CIA's figures also showed.

Rental markets in first-tier cities have been more resilient because of their stronger economic foundations, deeper labor markets, and ongoing population inflows, the CIA said in a research report. Seasonal demand generated by the annual university graduation cycle tends to have a more pronounced impact in these cities than elsewhere, it said.

Looking ahead, the institute expects rents in first-tier cities and the strongest second-tier markets to continue recovering, and while downward pressure is likely to persist in many second-tier and lower-tier cities, the pace and scale of future declines appear increasingly limited.

Across the 50 largest cities, the average monthly rent reached CNY34.01 (USD5.04) per square meter, up 0.1 percent from June and the strongest reading for the month since a 0.2 percent gain in 2023, according to CIA data.

Editors: Tang Shihua, Futura Costaglione