Rental markets in Chinese cities are becoming hot because of high housing prices and the new restriction policy on property investment.

In Beijing, the rental market's transactions in mid-March grew 22.2 percent year-on-year, up 8.5 percent from ten days before, according to data compiled by the house agency 5i5j.

The average rental price also increased by 16.6 percent year-on-year; the average price now stands at 3,162 yuan ($487) per month.

It was reported rental prices were widely raised in many other Chinese cities during the first quarter by more than 10 percent year-on-year.

According to the Chinese-language newspaper International Finance News, industry insiders and renters have said the soaring price is partly driven by property agencies' promotion of the government's restriction purchasing policy and the current high price for house maintaining fees such as water, electricity and building materials.