Kings and queens of rented castles

Many young professionals in big cities rent a home in more central areas to reduce their commuting time. [Photo provided to China Daily]

Central areas

Industry experts say the number of people who think like Shu and Zhong is growing, a consequence of the price of renting a home rising more slowly than the price of buying one.

The real estate services provider Savills says that between 2007 and 2015 the average price of new homes in Shanghai more than tripled, from 10,336 yuan a sq m to 32,151 yuan a sq m. In the same period rent for medium- to high-end properties rose a mere 5 percent, from 173.2 yuan a sq m to 181.3 yuan a sq m. James Macdonald, head of Savills China Research, says the annual rent for a two-bedroom apartment in Shanghai is only between 1.5 percent and 2 percent of the property's value.

Young professionals working in big cities usually prefer to rent a home in the more central areas of the city to reduce their traveling time to work, Macdonald says. Having to buy a home would usually mean having to settle for a property far from the city center where prices are lower.