
Chinese Internet Giants Are Targeting Housing Rental Market
Published:October 18, 2017
Reading Time:4 min read
For the vast number of migrants in China, house rental has been a hard issue. House purchase is faced with many policy constraints and the price is too high to ...
For the vast number of migrants in China, house rental has been a hard issue. House purchase is faced with many policy constraints and the price is too high to afford the house. So for them, renting seems to be the only option available.
For the vast number of migrants in China, house rental has been a hard issue. House purchase is faced with many policy constraints and the price is too high to afford the house. So, for them, renting seems to be the only option available. But when renting houses, they may face numerous problems -- bad intermediaries, one month deposit and N months’ rent paid in advance, demanding requirements from landlord... The convenience and regularization of housing leasing have become an urgent problem.
Thankfully, the Internet giants are accelerating their steps in developing the Internet as an important element in the convenient housing rental chain. At present, the Internet giants such as Ali, JD.com and even China Unionpay have landed in the residential rental market. While bringing new experiences to the public, they have their own calculation.
Zhima Credit[/caption]
In fact, Alibaba's entry dates back to March this year. At that time, Alibaba's Alipay was the first to launch the free deposit service in Shanghai. Its operation in past half year shows that though the house offering free deposit service only accounts for 15% of the total, it makes up 80% of the volume. There is no doubt that deposit exemption has great temptation - Zhima Credits are also proven to be useful.
After this successful test, Alibaba began to stride forward. At the launching ceremony of China Reliable Apartment Union recently, Alipay announced its launching of credit platform that user whose Zhima credit exceeds 650 can enjoy deposit exemption and monthly payment service.
In addition, JD.com also entered the real estate market, but chose the direction of real estate e-commerce. JD.com, whose business always overlaps with Alibaba, is also expected to enter the segment of housing rentals. After all, JD.com also has a Xiaobai Credit and it will definitely have this credit to play its role. In addition to the Internet giants, China Unionpay announced a partnership agreement with Shenyang Housing Administration Bureau and will jointly promote the building of house rental market.
As a result, the housing rental market has become a hot property. Driven by Ali, more giants are to join the market. A whirlwind which could be compared to O2O and sharing economy is taking shape quickly.
Internet giants target the housing rental market
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