Shanghai’s modern real estate market is only around 14 years old so still in its infancy when comparing apartments for rent Shanghai to the fully developed countries, there exists little organizational structure and it belies the view of an innovative skyscraper littered city. With the Government of the Peoples Republic of China’s regulations changes in the late 90’s Chinese residents were now given the prestige to choose and buy or rent out their very own domestic or commercial properties and apartments. However there are no multi-listings yet but the technical infrastructure stays basic. Under developed legal system has yet to place all the safety nets when things break down.
Whilst Shanghai is a massive town some parts of it still in the urbanization stage so the “jungle” still covers some regions of the huge settlement of rental apartment areas. Most house owners purchase their houses from the agents near the apartment building or villa compound they have chosen and tend to make use of the same agent to lease it out. If an owner of an older building wishes to lease out their house then they can usually put it on the books of the neighbourhood agent. The larger groups with offices around town are networked together but the smaller ones work independently. Whilst there exists some co-operation among agencies it is minimal because most are unwilling to share commission rates.
Landlords’ flexibility on deals depends first on their individual demand for return on investment (ROI). Most of the personally owned higher end deluxe properties are acquired outright as a result house owners can wait until there is a deal best matching their demands.
Meanwhile, houseowners that have either borrowed to get the property or have to pay pricey loan rates are desperately looking for some return on investment, no matter how modest it is.