Majority of Chinese still cannot afford home

08:09, May 06, 2011      

Email | Print | Subscribe | Comments | Forum 

More than 60 percent of China's residents cannot afford an apartment and the high property prices in the cities are curbing the nation's urbanization process, experts said.

"Migrant workers are unable to afford apartments in the cities, which forces them to return to their hometowns and build houses in rural areas," said Li Enping, associate professor at the Institute for Urban and Environmental Studies under the Chinese Academy of Social Sciences, on Thursday.

Li was speaking at the launch of the Blue Book of Real Estate, an annual report on the development of China's real estate market. It is the eighth year that the Social Sciences Academic Press under the Chinese Academy of Social Sciences has published the report.

"About 30 percent of the urban population own more than 50 percent of the total commercial houses in China," he said, adding that of that 30 percent many have more than one home.

Such speculative investment is one reason that has caused urban house prices to rocket.

As part of its 12th Five-Year Plan (2011-2015), the central government pledged earlier this year to build 10 million units of government-subsidized housing in 2011 and 36 million units in total by 2015 in an attempt to cool the over-heated real estate market.

The country will need to spend about 1.3 trillion yuan ($197 billion) to build the 10 million units of government-subsidized housing this year. To fund the work, the central and local governments will together provide more than 500 billion yuan, with the remainder channeled from social institutions and individuals, according to figures from the Ministry of Housing and Urban-Rural Development.

However, the government is under great pressure to find the money needed to support such a large-scale construction program.

"The money should come from the government, banks and various social institutes," said Wang Yulin, vice-director of the policy research center under the Ministry of Housing and Urban-Rural Development at the launch.

"The State-owned enterprises under the administration of the central government should take the lead and further increase their investment in building subsidized-housing projects," Wang added.

Li Yang, vice-president of the Chinese Academy of Social Sciences, said on Thursday that Chinese people should consider renting rather than buying.

"In China, only about 10 percent of people rent. That it is much lower than the 38 percent in the United States and the 70 percent in Germany," he said.

Source: China Daily
BRICS Leaders Meeting 2011
Japan in aftershocks
  Weekly review  
April 23   Pictures catch ancient & cultural heritage of a Sichuan town
April 28   Will China's rise lead to the decline of U.S.?
April 25   Kunming-Singapore High-Speed Railway begins construction
April 25   Chinese path -- a marvel of world's economic growth
April 23   The week in pictures
April 26   Second excavation to sunken 'Nan'ao No 1' finished
April 27   Guizhou girl designs tea set for Prince William's wedding
April 26   PLA reserve force Type 07 uniform makes debut in Beijing
April 28   Old friends eye for new & higher levels of cooperation
April 29   Shanghai auto show closes


  • Do you have anything to say?


Special Coverage
  • Al-Qaeda leader Osama bin Laden dead
  • BRICS Leaders' Meeting 2011
Major headlines
Editor's Pick
  • Water level of Po Yang Lake keeps low
  • Argentine former president Carlos Menem divorces
  • Beautiful scenery in Taiwan's Tainan City
  • Gold bars featuring Xi'an Horticultural Expo released
  • Obama extends best wishes to British newlywed royal couple
  • Notre-Dame Cathedral - mixture of Romanesque, Gothic style
Hot Forum Dicussion