A unit with a loft is seen at a so-called youth apartment by Chinese developer China Vanke in Shenzhen, China April 26, 2017. [Photo/Agencies]

His en-suite room is around 25 square metres. It fits a double-sized bed and small wardrobe, but has no kitchen.

"To buy a two-bedroom unit you'd need at least 1 million yuan for a downpayment and I can't afford it now," Chen said, adding that a short-term lease was preferable as he may have to relocate to Shanghai after a few years.

The investors are being helped by a government-backed drive to support rental supply in a bid to rein in property prices and satisfy housing demand. The authorities have allowed commercial properties to be redeveloped into rental apartments, and encouraged banks to provide financing to rental apartment companies.

Reuters