www.chinanews.com
On November 25th, one article titled “Housing Troubles Talents” was published in the column of “Morning News of China” by Lianhe Zaobao of Singapore, and the cause of high housing price and possible solutions were discussed based on some individual cases through the story that young people could not afford a house in the big cities in China.
Some quotations from the article are shown below:
“I really want to stay in Shanghai, but I really cannot afford a house here.” a young man working in the financial industry for several years with his monthly income of about RMB 10,000 Yuan (the unit is the same as below) but still not having enough money to pay the down payment for the loan said like this to the media.
As the same as that in other big cities of China, the price of the real estate in Shanghai is continuously increasing due to various factors in the recent years. On the one hand, as for many citizens, the rising speed of the housing price has surpassed the level that people with “good income” can afford. On the other hand, the mean price for each square meter of various newly-established buildings is continuously rising to even higher levels, which is an incredible figure for most of the people and also a piece of bad news depresses more salary people, just as the same as many other societies. The government and many people worry that if the housing price is going to continuously rise, Shanghai will even lose some talents.
The situations in Beijing are also as severe as those in Shanghai. It is reported that the profit for land auctions is almost RMB 64 billion Yuan. The higher land auction price, the much more money ordinary citizens will pay for the buildings established on such land, and such housing price is called “Deep-sigh Price”. In addition to significant revenue incentive for local governments on the real estate market, it also involves interests of related real estate agents and business chains, and even the overall economic development of a city, so the government is not willing to control the rising housing prices, which is a matter with grave consequences.
However, to retain the relocated talents, last year Shanghai began to release another kind of apartment that the white-collar workers can rent with low rents, but it is only provided for the relocated talents not local ones, and currently there are only two such building projects, which cannot meet the demand for houses from the number of relocated talents that is increasing daily. Finally the report mentioned that a young man and his girlfriend decided to leave Shanghai for his hometown, buying a big house and living there as a rich couple.