Small housing models lose charm
14/8/2003 14:34
Supplies of small housing models with 30 to 80 square meters have largely
exceeded the market demand, generating smaller investment returns, the Labor
Post reported today.
According to a survey, bachelor's apartment and small
housing models accounted for 42 percent of the total property supplies in the
local market in the first quarter of the year, with the proportion even reaching
more than 65 percent in certain areas.
However, the buyers who plan to
purchase small housing only accounted for 11 percent of the total property
buyers from January to March this year.
Some bachelor's apartment and small
housing models are not suitable for people to live in, due to poor ventilation
and day-lighting conditions, with only 60 percent of floor space can be
used.
Smaller returns generated from investing in small housing models are
cited as the main reason for such properties to lose charm, said an industry
analyst.
More than 60 percent of bachelor's apartments and small housing
models are bought for investment purposes, with the prices much higher than
ordinary properties.
Investors have to raise the rents in order to get
decent economic returns.
According to a survey, the monthly rent of an
ordinary apartment with one room or two small rooms in local downtown area
usually reaches 1,200 to 1,800 yuan. (US$144-US$216), while that of a bachelor's
apartment in the same area reaches at least more than 2,000 yuan, or even
topping 6,000 yuan.
Leasers of small housing models are usually young people
aged below 30, with an average monthly salary of less than 5,000 yuan, so they
cannot afford to lease such apartments.
The growing unoccupancy rate in local
bachelor's apartments has pushed investors to lower their rents or sell the
properties in the second-hand market.
Wendy Zhang/ Shanghai Daily news
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