Photo/VCG

July 9 (NBD) -- Long-term apartment rentals are going to create a considerable market with the upcoming release of the development plan for the Guangdong-Hong Kong-Macao Greater Bay Area ("the Greater Bay Area"), as the favorable policies will speed up the gathering of industrial clusters and population. 

According to incomplete statistics of 21st Century Business Herald, more than 20 real estate developers, including China Vanke Co Ltd (000002.SZ), Poly Real Estate Group Co., Ltd. (600048.SH), Country Garden Holdings Co Ltd, and Longfor Group Holdings Limited, have entered or are planning to tap into the niche sector. 

Thanks to the development over the past few years, Vanke's long-term rental apartment brand Port Apartment has launched 48 projects in Guangzhou, Shenzhen, Foshan, and Dongguan. 

Country Garden Holdings and Poly both expect to make the leasing business their new growth engine. In a mere six months, Country Garden Holdings have built a presence in Guangzhou, Shenzhen and Dongguan with 8 outlets in total in the Greater Bay Area.

Financial institutions like China Construction Bank are also trying to grab a share of the promising market by partnering with property developers. 

In terms of business operation, Vanke is employing an asset-light model that highlights a combination of content operation and comprehensive improvement. Its urban village transformation plan in Shenzhen and Zhuhai, which was launched to acquire more housing resources, is garnering more and more attention of real estate developers. 

Country Garden Holdings Co Ltd, China Resources, and Gemdale Corporation (600383.SH) are looking for opportunities to take advantages of the ample urban village resources.  

Email: lansuying@nbd.com.cn