The Growth of the Cost of Housing in China Has Had a Positive Effect on the Profitability of ChinaRentCorp

The Growth of the Cost of Housing in China Has Had a Positive Effect on the Profitability of ChinaRentCorp

Company ChinaRentCorp, which specializes in sublease of real estate, has told about stably a growing profit in the last few months. Specialists of the company attribute a positive profitability with growth in property prices in the CPR.

In China, despite the measures undertaken by the state, continues growth in property prices. Has reported Interfax to August, the total amount of transactions for the sale of housing in the CPR since the beginning of the year grew by more than 41 %. In July-August 2016 the growth in property prices has been fixed in 58 the largest cities of the country. The total volume of construction of residential and commercial real estate, which was started in January-July, amounted to 929.4 million square meters, which is 13.7 % more than last year.

Growth of real estate prices in Chinese megacities bluntly affected the aggregate profitability of ChinaRentCorp, which in August reached 18.65 %. In July given indicator made 16.37 %. Due to the improved conditions increased as the profit ChinaRentCorp and profit investors. Profit of the company, compared with July, increased from 3.35 to 4.81%, the profit of investors — from 13.02 to 13.84%.

It is worth noting that the trend towards improvement of the situation in the real estate market began to change in a positive direction with March 2016. Exactly then began grow stably the profitability of investors ChinaRentCorp, at that on the overall picture is practically did not affect the small decline of amounting to 0.16 % in June-July.

ChinaRentCorp works on China’s property market since 2010. During this time of areas volume, which rents the company, increased to a few tens of thousands of square meters. ChinaRentCorp — management company that working with finances investors and exists at the expense 25-35 % of the profits of transactions. The remaining part of net income — it is income of the investor — depending on the market situation amounts to 10-16 % per month. Since 2015 ChinaRentCorp provides service insurance deposits investors from financial risks. Partner — Insurance Company «DONGBU INSURANCE CO. LIMITED » — guarantees to investors of preservation the investment body.

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