Distribution of rental properties is increasing in first-tier cities, amid the ongoing release of favorable policies encouraging the development of the domestic housing rental market.
China's property rental market has great potential, said Huang Haibin, CEO and founder of Shanghai-based flat rental firm Harbour Apartments.
Business-to-customer (B2C) platforms' property rental business only has a market share of 2 percent in China, compared with 40 percent in the US, Huang said in a statement sent to the Global Times on Tuesday.
Harbour Apartments announced it received A-round financing on Saturday from Hong Kong-based Gaw Capital Partners and Shanghai-based Trustbridge Partners, and will establish a long-term flat investment fund with Gaw Capital.
The company did not wish to disclose the amount of financing it received.
Harbour Apartments aims to expand in the four first-tier cities - Shanghai, Beijing, and Guangzhou and Shenzhen in South China's Guangdong Province - and to eventually manage more than 1 million flats, said the statement.
US private equity company Warburg Pincus LLC said on September 4 that it would invest $183 million in Shanghai-based Nova Property Investment Co, which aims to convert "aged and distressed properties" into modern flats and office space for rent, the Economic Information Daily reported.
On Friday, Shanghai released guidelines encouraging the development of the property rental market, stating that a rental market system featuring various parties, supplies and standardized management is expected to be formulated in the city in 2020, according to media reports.