(Yicai) Nov. 10 -- Shanghai and Shenzhen saw housing rents climb last month for the eighth month in a row, mainly driven by the continued influx of talent, while almost all other Chinese cities have seen a drop since the start of the traditional off-season this quarter.

The average monthly housing rent in Shanghai rose 0.3 percent to CNY85.04 (USD12.80) per square meter in October from the prior month, while that in Shenzhen climbed 0.1 percent to CNY83.21 per sqm, according to the latest data from the China Index Academy. By comparison, the figure in 50 Chinese cities fell 0.3 percent to CNY33.87 per sqm, extending from a 0.2 percent drop in September, with only five cities seeing month-over-month increases.

Year on year, average monthly housing rents in China fell 2 percent in October, improving from a 2.2 percent retreat the previous month.

The average monthly housing rent in the country’s four first-tier cities -- Beijing, Shanghai, Guangzhou, and Shenzhen -- fell 0.2 percent in October from the prior month, after staying almost unchanged in September. In second-tier cities, rents fell 0.4 percent in October, versus a 3 percent drop in September, while slumping 0.1 percent in third- and fourth-tier cities, basically the same as in September.

“The month-on-month decline in housing rents all over the country last month slightly expanded, indicating a drop in demand after the off-season started,” said Cao Jingjing, general manager of the China Index Academy’s index research department. The fourth quarter is a traditional off-season for housing rentals, so homeowners lower asking prices after demand declines, Cao pointed out.

“Supported by industrial competitive advantage and continuous inflow of young talent, the housing rent in Shanghai and Shenzhen is expected to maintain a stable and upward trend,” Cao pointed out.

The average monthly housing rent in Beijing and Guangzhou fell 0.9 percent and 0.3 percent to CNY80.78 and CNY47.31 per sqm, respectively, last month from the previous month.

First-tier cities maintained an upward trend in cumulative rent due to their industrial advantages and population inflow, with a 1 percent cumulative increase from January to October, according to data from the China Index Academy. The figure fell in second-, third-, and fourth-tier cities, but the decline was smaller than in the same period in the previous two years, staying within 2 percent.

In November and December, due to the traditional off-season and unlikely significant demand growth, overall housing rents are expected to continue a slight decrease, Cao said. However, after years of decline, rents in most cities have returned to a reasonable range, weakening the driving force for further significant drops, Cao noted, adding that rents in core cities have grown for consecutive months, providing an anchoring effect for the market in other cities.

In addition, although affordable housing to meet the needs of the many low-income individuals entering the market has increased market supply nationwide, rental pricing for such homes also provides an “anchor” for local market-oriented rental pricing, which helps stabilize price expectations, Cao pointed out.

Editors: Tang Shihua, Martin Kadiev