Ren Zhiqiang: Aging population will increase the demand for houses

Ren Zhiqiang

Recently, some experts said China had entered the era of aging population, and the children born under the “one child policy” will inherit more houses, and there may be less demand for housing. In response to this, chairman of Hua Yuan Real Estate Group, Ren Zhiqiang claimed that this conclusion ignored an important factor, namely, together with the aging population, family structure has also changed which may greatly increase the demand for housing.

In 1989, the average household size was 3.84 people, now this number has been less than 3, thus the number of households is growing.

In addition, Ren Zhiqiang said that in 2012 among the eight major categories of consumption, housing consumption had passed the food consumption to become the top consumption category, accounting for 18.2%. While in Europe, South Korea, the United States and Japan, proportion of housing consumption has been more than 25%. “The proportion of China’s housing consumption will be higher and higher, and this trend can not be changed by any policy” Ren said.

Source: 北京商报

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