(Yicai Global) Jan. 22 -- Shanghai has unveiled its first rental housing brand Cheng Fang through a state-owned real estate developer as the city looks to offer more affordable accommodation options.
Shanghai Land Group Co. introduced the new brand on Jan. 20, local news agency Xinmin Evening News reported. The firm has set aside 17 land parcels covering a million square meters since June and hopes to build 20,000 rental homes with investments totaling CNY18 billion (USD2.8 billion). Display properties should be ready by the end of this month.
Several Chinese cities and provinces have sought to enhance their rental markets to cool down bubbling property prices since early last year. Some rolled out policies that allowed developers to transform commercial land into residential property for rentals.
Most of the new plots are in prime locations, such as downtown Shanghai and close to financial hub Lujiazui and Zhangjiang Hi-Tech Park. Shanghai Land will complete around 4,000 apartments in the first half of this year and start building the remainder in the second half, aiming to finish the project in 2020.
While unveiling Cheng Fang, the firm set up a rental housing development alliance with more than 20 companies, including Shanghai Lingang Holdings Co.
China Construction Bank Corp., CITIC Securities Co., Economic Development Group Co. and Alibaba Group Holding Ltd.'s Alibaba Cloud Computing Co. will also create a property management platform for the local government, aiming to roll it out by year-end.
Shanghai Land was set up in 2002 and is wholly-owned by the state. It has developed 130,000 homes via 30 affordable housing projects, covering a total 782 million square meters in floor area.