Date
15 December 2017
A growing number of young Chinese are seeing their dream of owning a home slip away. Photo: Bloomberg
A growing number of young Chinese are seeing their dream of owning a home slip away. Photo: Bloomberg

Housing costs hurting young Chinese

Housing is increasingly out of reach of young Chinese and things are not going to get any easier anytime soon, the Hong Kong Economic Journal reported Tuesday.

Persistently high home prices are to blame despite the government’s best efforts to curb them, the report said, citing a forecast by property surveyors DTZ.

Prospective homebuyers in secondary cities are slightly better off, with prices expected to fall a further 5-10 percent thanks to excess supply.

In key cities such as Shanghai, residents grapple with soaring housing costs and other issues.

Former Hong Kong resident Chow Wing-chi, who moved to Shanghai to work, said it makes more sense to rent a room than buy a home in the city.

Also, newer properties are mainly in suburban areas, which means longer commutes, Chow told HKEJ. On the other hand, a sublet room in the city center costs about 2,800 yuan (US$449) a month but this is an issue because of a ban by the local government on such accommodation.

The ban on sublet premises is helping push up property prices in prime areas, she said.

Meanwhile, local resident Feng Haoran sees a potential market bust, saying many Shanghainese are looking to sell their homes.

They want to get out before the harshest property curbs in years cause a steep fall in home prices and invest the proceeds in safe-haven assets such as gold, Feng said.

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