Rent in Shanghai is Falling: Where Did the Expat Renters Go?

Rent in Shanghai took a hit in 2024, with prices dropping citywide, especially in the downtown core. A real estate expert points to a steep decline in expatriate renters as the main culprit. Historically, high-end leases in central districts like the former French Concession and Gubei thrived on foreign executives from multinational companies. These tenants, often backed by corporate housing allowances of RMB 10,000–50,000 monthly, drove demand for premium properties, favoring vibrant, international neighborhoods. Their long-term leases, typically three to five years, ensured steady rent payments and low vacancy risks for landlords.

Now, that tenant pool has shrunk dramatically. A 150-square-meter, two-bedroom unit in Huangpu District, once fetching RMB 32,000–34,000 five years ago, dropped to RMB 28,000 by November 2024—and tenants still bargained it down to RMB 25,000. Suburban rents have dipped too, but the city center’s decline stands out. With fewer expats, social media influencers have stepped in as high-end renters. Yet, their unstable incomes—rising and falling quickly—make them less dependable, further softening luxury rental demand.

Data backs this shift: central Shanghai’s rental prices have fallen more sharply than suburban areas, reflecting the loss of a once-reliable expatriate base. Have you seen rental prices drop near you? How do they stack up to past years? Let us know in the comments!