85% homeownership rate in China, still more houses and better houses are demanded

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Traditional houses in China

According to the People’s Daily, recently the Vice Finance Minister Wang Baoan said, “the homeownership rate in the US rate is 60%, Germany 40%, and the homeownership in China is as high as 85%. But behind this 85% homeownership rate, various kinds of housing are found around people’s life:

House for marriage: 4.6 square meters (4.6平方的婚房)

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On September 23, 2012, a 26-year-old man in Hubei Zhang married a 24-year-old girl named Guizhou Pen in Jiangmen, Guangdong. Their “marriage house” is a small shop of their parents, a small room with 3.1 meters in length and 1.5 meters in width and made up with plywood and paper.

Bus housing (巴士房子)

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Feng Zeng is completely relying on his small garage for living. To him, it is totally not practical for him to loan to buy a house. With the mortgage payments, the family’s quality of life may decline substantially, and there will be a lot of difficulties for his three children to go to school.” In the next year, he will try to expand business. Feng Zeng feels that under the current economic conditions, he cannot afford to become a “house slaves (buy a house with loan)”.

Container house  (集装箱房)

container house

Reporters in Haikou City near Qiuhai Avenue found a number of container dwelling houses, they are 6 meters in depth, 3 meters in width and 2.6 meters in height with glass windows and air conditioning. Daily rent is only 6 yuan, and the whole container is sold at 10,000 yuan (USD 1,600). Such container houses are much favorable among the migrant workers. According to the people who live in such container houses, there are four corner earrings at the top of the container for lifting purpose, thus they can hire vehicle to move it anywhere.

Editorial Comment: The 85% homeownership rate in China reflects largely the fact that Chinese people are insisting on having houses under their name, still more houses are required in term of a bigger house and a better house. Increasing the supply of houses is still necessary in particular among the major cities.

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