The cooling down of the mainland real estate market has spread to county towns, where despite repeated drops in rent, some places still remain unoccupied. Landlords in various locations on the mainland reveal that commercial properties in county towns are not in demand, leading to dreams of “one property supporting three generations” being shattered.
In a report by “Everyday Individuals Society” under Beijing Boya Tianxia Media Company on May 29th, it was mentioned that Zhang Li from Shuyang County, Jiangsu Province, had his parents acquire six adjacent commercial properties on the busiest commercial street in the county in 2009, and in 2012 they bought two more. Zhang Li subsequently rented out all these properties. The eight commercial spaces were always quickly occupied due to their proximity to the commercial center, with vacancies never exceeding two months. However, now they remain empty for months or even half a year.
In the past two years, half of the storefronts on the streets have been vacant. Zhang Li mentioned that it’s becoming increasingly difficult to find tenants, and only by lowering the rent, can they retain occupants.
With each rent collection, Zhang Li must put on a performance. Initially showing a firm stance, then conceding, and finally shaking hands with the tenant, saying, “Remember (the rent reduction) in your heart.” The implied message being “You need to keep renting next year.”
Zhang Li disclosed that the rent for an auto parts store dropped from 150,000 yuan annually to 100,000 yuan, while a snack shop’s rent decreased from 230,000 yuan to 190,000 yuan per year. Some tenants only paid half a year’s rent and left the storefront, while others would inform landlords of an impromptu price reduction. For instance, a snack shop tenant called a week before rent was due, complaining and requesting a 10,000 yuan reduction, to which Zhang Li had no choice but to accept.
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