Event: on April 21, 2022, the Beijing Municipal Commission of housing and urban rural development and the Municipal Planning Commission jointly issued the guidelines for the construction of indemnificatory rental housing in Beijing (for Trial Implementation), which put forward capital construction requirements for the overall planning, supporting facilities, monomer design and interior decoration of indemnificatory rental housing.
Comments: the guideline points out that indemnificatory rental housing can generally be divided into residential type, dormitory type and apartment type. It defines the definition and building type of apartment rental housing for the first time, and stipulates that the per capita use area shall not be less than 5 square meters. It can better standardize and guide the planning, design, construction and management of indemnificatory rental housing, improve the quality of indemnificatory rental housing, promote the healthy development of housing rental market, and provide more rental options for new citizens, young people and other groups.
"Small residents" and intelligent community have become the trend: guaranteed rental housing generally has the characteristics of small house type and high density, and most of its residents are young people, who need to meet their social, entertainment, sports and other needs. Therefore, public activity areas, auxiliary houses and surrounding supporting facilities are particularly important. It is expected that "small residents" will become the development trend of guaranteed rental housing community in the future. At the same time, the guidelines advocate the application of intelligent technology to build a smart community, encourage the setting of intelligent door locks, vigorously promote the intelligent regulation of indoor water, electricity, gas and heat, and advocate convenient technologies such as remote meter reading and intelligent payment.
The policy encourages fabricated steel structure, and the industry may further grow: the guidelines clearly points out that the structural design of new indemnificatory rental housing selects the structural system conducive to flexible space separation, combination and sustainable transformation, and recommends the use of fabricated steel structure system. Due to the advantages of short construction period, small emission and flexible structure, prefabricated buildings are more consistent with the purpose of indemnificatory rental housing. At present, Beijing has clearly encouraged the use of prefabricated structures in indemnificatory rental housing. We expect that other cities will also successively introduce relevant supporting policies in the future, and prefabricated buildings and steel structures will usher in good opportunities for development.
Public rental REITs is a historic opportunity, and more guaranteed rental housing projects can be expected to enter the pool: Shenzhen talent affordable housing REITs project has been submitted to the national development and Reform Commission for review. The rental sources of affordable rental housing are scattered and stable, which is in line with the requirements of public rental REITs. At the same time, affordable rental housing REITs further enrich the underlying asset types of infrastructure REITs. REITs' information disclosure, transaction raising and other mechanisms are also conducive to the sustainable development of rental housing industry. With the release of Beijing guidelines and the further standardization of the guaranteed rental housing industry in other places, the guaranteed rental housing projects may enter the pool public offering REITs market in a larger scale and quantity.
Investment suggestion: grasp the good opportunity for the development of assembly industry and embrace the historic opportunity of public offering REITs of infrastructure. The Ministry of housing and urban rural development proposed that during the 14th Five Year Plan period, the country plans to add 6.5 million units (rooms) of indemnificatory rental housing. We calculate that only the indemnificatory rental housing industry will bring more than 190% of the incremental space (area caliber) to the fabricated decoration industry. Direction of prefabricated decoration: focus on Beijing New Building Materials Public Limited Company(000786) , and pay attention to Zhejiang Yasha Decoration Co.Ltd(002375) , Suzhou Kelida Building & Decoration Co.Ltd(603828) , Suzhou Gold Mantis Construction Decoration Co.Ltd(002081) ; Direction of steel structure: focus on Anhui Honglu Steel Construction(Group) Co.Ltd(002541) , Changjiang & Jinggong Steel Building(Group)Co.Ltd(600496) , and pay attention to Anhui Fuhuang Steel Structure Co.Ltd(002743) , Hangxiao Steel Structure Co.Ltd(600477) .
Shenzhen guaranteed rental REITs project has been submitted to the national development and Reform Commission for review, providing a new way to raise funds for guaranteed rental housing. It is expected that there will be a larger and more number of guaranteed rental REITs projects in the pool in the future. It is suggested to grasp the historic opportunity of REITs and pay attention to the landing of guaranteed rental REITs project.
Risk analysis: the operation loss risk of indemnificatory rental housing, the promotion of indemnificatory rental housing is less than the expected risk, the promotion of public raised REITs of infrastructure is less than the expected risk, and the penetration rate of steel structure industry is less than the expected risk.
